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■^Vi^R INSTITUTION
i*. Revolution, and Peace

f -

^ s^

• ^ • f. *

s .

rHE MINING INDUSTRY.

Evidence and Report

OF THE

Industrial Commission of Enquiry,

WITH AN APPENDIX

GOKTAINIKO

'I"*

The Letter of the Chamber of Mines to the Commission^

Thk Principal Laws op the Republic Affecting the Mining Industry,

And other Documents of Interest Appertaining to the

Evidence Given at the Enquiry.

Compiled and Published by

HE WiTWATERSRAND CHAMBER OF MiNES. JOHANNESBURG, S.A.R

5obanne0bur0 :

TIMES PRINTING AND PUBLISHING WORKS.

1897.

JOHANNEbBUlUi *.
PBINTED AT THE JOHANNKSRURCi TIMES PRINTING AND I'UBIJSHINC W(»HKS.

PREFACE.

m^^m

Since its formation in 1889 the Chamber has been mainly engaged in
endeavouring to secure the mines relief from the heavy burdens imposed
on them. The cost of living, and hence the rate of wages of the white
employees, has been rendered unduly high by the duties on the necessaries
of life and on all articles of ordinary requirement, while heavy railway
tarififs and the dynamite monopoly, and the difficulty of obtaining an
adequate supply of native laboiu* at reasonable pay, have militated against
the profitable working and development of the industry as a whole. As
is shown in the letter of the Chamber to the Industrial Commission all
these matters have again and again been brought to the notice of the
Grovemment and the Legislature, but on the most important questions
redress has not been obtained.

At the annual meeting of the Eand Mines, Ltd., in March last, especial
stress was laid by the Chairman on the manner in which the development
of the industry was being retarded by the excessive rates for transport of
coal and other articles of prime necessity for mining, by the extortionate
price charged for explosives, by the high cost of white labour, due to the
duties on foodstuffs, and of native labour, consequent on the inefficient
administration of the Pass and Liquor Laws and the scant assistance
afforded by the Government in connection with procuring a sufficient supply
at moderate wages. Subsequently at meetings of other companies
similar complaints were made, and it was pointed out that unless relief
were obtained many mines which were barely paying expenses would be
forced to shut down, while others, which under favourable conditions
could and would be profitably worked, would continue inactive.

IV. PREFACE.

Meanwhile the disastrous effects of rinderpest on the farmers and of
bad trade on the urban population were becoming evident in a constantly
widening area of acute distress.

Among the Executive Council minutes presented to the Volksraad is
one which records, that, on the 24th March the Executive Council
considered a complaint regarding the excessive tariffs charged in the
South African Republic and other States of South Africa, and deeming it
desirable to institute an enquiry into the state of affairs generally of the
mining industry of the Witwatersrand, resolved to appoint a commission
for that purpose. Accordingly on the 14th April the following notice
appeared in the Government Gazette : —

" It is hereby made known for general information that the Executive
" Council has seen fit to institute an enquiry with reference to the present
" alleged state of affairs in connection with the mining industry of the Wit-
" watersrand diggings in general, and to furnish the Executive Council with a
'•report regarding all matters that may have stood in the way, or have
" hindered, and still may hinder the development of the mining industry, and
" further, so soon as possible, to make such recommendations as may tend to
" the improvement and amendment of such matters."

" The Commission, charged with this enquiry, consists of the following
"gentlemen: — S. W. Burger, member of Executive Council; J. S. Smit,
" Commissioner of Railways ; C. J. Joubert, Minister of Mines ; G. ScHMrrz-
" DuMONT, Acting State Mining Engineer : and J. F. DE Beer, First Special
** Judicial Commissioner, Johannesburg, as ordinary members, with Mr. Thomas
" Hugo, as financial expert ; Messra E. Brochon, J. Pierce, and A. Brakhan
*' shall either jointly as a Commission, or severally, support the permanent
" members of the Commission with their advice, whenever requested. In order
" to make the work of the Commission as wide as possible they are authorised
''to take evidence on all those matters that can forward the aim of the
" Commission."

" The Government desires to bring under the notice of all persons con-

" cemed that the willing tendering of evidence and information by each and

"every one, no matter from whom required, will greatly assist the above

" described aim.

(Signed) C. VAN BOESCHOTEN,

Acting State Secretary.
Government Office, Pretoria,
14th April, 1897."

PREFACE. V.

Messrs. H. Bosch and E. Levy were appointed Secretaries, and with
the consent of the Government, Messrs. James Hay (President of the
Chamber of Mines) and George Albu (Chairman of the Association of
Mines) were later added to the Commission as advisory members.

From the minute of the Executive Council of the 30th March it is
clear that the duties of the financial expert and of the advisory members
were intended to be of a very limited character. Mr. Hugo was not to be
an ordinary member of the Commission, but was to sit merely as financial
expert and as such to have the right of voting on financial matters ; the
advisory members were appointed as members to assist the Commission,
whenever desired so to do, with information, explanation and advice.

But when the Commission started work it became evident that the
advisory members by their knowledge of the questions under consider-
ation were able to render indispensable service in eliciting evidence and
examining and cross-examining witnesses, and they assumed and were
accorded in all respects the same rights as those exercised by the ordinary
members, eventually taking part in the drafting of the report and attaching
their signatures to it.

The Commission opened their sittings, for the taking of evidence, on
the 20th April and closed them on the 4th June : the actual time devoted
to the hearing of witnesses having been twenty days. Their report was
45igned and presented to Government on the 27th July, and was laid
before the Volksraad by the Government on the 9th August, with a
request that that body would appoint a committee to act in conjunction
with the Government in considering the various points contained therein,
and make such recommendations as they might deem reasonable and
desirable : and to refer to the Second Volksraad all such subjects as
would properly come under the cognizance of that House.

After a protracted debate the proposal of the Government was
adopted on the 10th August and the following committee, with instruc-
tions to submit its recommendations during the current session, was
appointed, viz : Messrs. F. H. G. Wolmarans, A. D. W. Wolmarans,
B. J. Vorster, C. J. Tosen, and L. Botha.

The mining industry responded willingly to the request of the

VI. PREFACE.

Government to give evidence before the Commission, and a mass of
valuable statistical data in connection with the working of the mines, and
the way in which the low grade properties were kept idle by the various
burdens and administrative shortcomings which artificially raise working
costs, was submitted.

With the object of preserving this important evidence and rendering
it available for the mining companies for purposes of reference, the
Chamber determined upon publishing it in book form. It was also
deemed advisable to embody in the volume the diflFerent laws of the State
bearing directly on the mining industry and the agreements entered into
by the Government in connection with the railway concession and the
dynamite monopoly, which formed the subject of frequent reference by
many of the witnesses ; while population and other statistics have be©a
added as being of interest in relation to the questions dealt with by the
Commission.

For the convenience of the reader the evidence of those witnesses^
whose examination did not proceed continuously, has been brought
together ; marginal notes have been furnished throughout, and the index
has been arranged to facilitate reference to the various subjects covered
by the enquiry.

It had been hoped that the report of the Volksraad Commission
would have been published in time to have been included in this volimie,
but that expectation has not been realised. The report has still to be
presented, and it remains to be seen to what extent the Legislature will
then approve and give effect to the recommendations of the Commission.
These recommendations, though not proceeding so far as the Chamber
would have desired, are generally regarded by the industry as liberal and
statesmanlike ; and it is clear that if adopted they will do much towards
permitting that expansion of mining operations which would result from
the working of the poorer mines of the Witwatersrand.

By their condemnation of monopolies and concessions, by their
recommendations for the lightening of the duties on foodstuffs and of the
railway rates on coal and other articles, in their plea for the better and
more effective administration and enforcement of the Pass Law, the

PREFACE. Vll.

Liquor Law, and the Gold Thefts clauses of the Gold Law, the Com-
missioners appointed by the Government to enquire into the state of
i^irs of the gold mining industry of the Witwatersrand have testified in
the fullest possible way to the reality of the grievances which are bearing
so heavily on the mines and to the justice of the demands for redress,
which unfailingly, year by year, the Chamber has laid before the Govern-
ment and the Legislature of the Republic.

C'hamber of Mines,

20th September, 1897.

List of Witnesses.

Mr. J. Hay
6. Albu

E. J. Way ..
S. Jknninos

J. P. FiTZPATBICK

W. L. Hamilton

F. Raleigh ...
R. M. Catlin
W. Dalbymplb

C. S. €k>LDMAirH

Mabtik Lubkck
L. I. Sbymoub
R. Babbow ...

£. Bboghon
A. Bbakhak...

t«

H. Jekkikgs

T. H. Lbgoktt
J. H. Johns
J. B. Robinson
H F. E. PisTOBius

A. A. NOBLB

K. Rood
F. KocK
A. B. Fyfpk

6. A. A MiDDBLBBBG

W. C. Thomson ...

„ S. FOOTE

W. R- Bbown
W. Shanks ...
G. A. Denny
A Philup ...
W. Haxl
W. Hoskbn ...

•••

1897.
April 20.

April 21, 22.

April 22.

... April 27, 28.

April 28.

April 29.

May 5.

May 5, 6.

May 6.

May 7.

May 12.

r May 12.

\ June 1.

May 12.

May 12, 13.

May 13.

May 14«'

May 14.

May 19.

... May 20, 21.

May 21.

( May 21.

\ June 2.

May 26.

June 2, 3.

Jane 3.

June 3, 4.

-4

Table of Contents.

PART I.

■TIDEXCB 6IYEN BEFOBB THE IKDUSTBIAL COMMISSION OF ENQUIBY AND THE EBPOBT OF THE

C0MMISSI0NEB8.

PART II.

APPENDIX.

PART I.

BEPOBT OF THE

ERRATUM.

On page 425, in the first marginal note, *^ Simmer and Jack
Shafts" should read '* Simmer and Jack East Shafts."

VY. Xi. rLamuLuu

F. Raleigh ...

»y

R. M. Catlin

W. Dalryuple

a •

C. S. Groldmann

M. Liibeck ...

L. I. Seymour

R. Barrow ...

• as

E. Brochon

A. Brakhan ...

»9

H. Jennings

T H. Leggett

. - »

J. H. Johns

J. B. Robinson

• . • • •

H. R K Pistorius...

A. A. Noble ..•

« • • •

Paob.
1

104

141

148

172

178
182

194

240

256

263

282

291

xu.

TABLE OF CONTENTS.

Evidence of Mr.

]^ Rood

F. W. Kock ...

A. B. Fyffe

}}

G. A. A. Middelberg

W. C. Thomson ...

S. Foote

W. R. Brown

W. Shanks ...

G. A. Denny

A. Phillip ...

W. Hall

W. Hosken ...

Closing

remarks of the Chairman ...

Report

of the Commission

* .•

29$

294

29^

310

342

34S

362

365

369

381

412

430

443

445

PART II.

APPENDIX.

I. Letter of the Witwatersrand Chamber of Mines to the Commission ... 459

II. Memorials of the Witwatersrand Chamber of Mined to the Volksraad . . . 484

III. Report of the Witwatersrand Chamber of Mines Conmiittee on Railways ... -493

Annexurea, — (1) Report of the Netherlands South African Railway Company for 1890 ;
(2) General RMrnlations of the Netherlands South African Railway Company ;
and (3) Natal-Netherlanda Agreement.

rV. Mr. Dougall's letter on the Netherlands Railway Company 540

Y. Netherlands Railway Concession ... ... ... 546

YI. Report of the Yolksraad Dynamite Commission ... ... 556

YII. Balance Sheet of the South African Explosives Company ... ... 563

Yin. The State Dynamite Monopoly. Contract between the Government and the Agent 565

IX. Budget Statements of the South African Republic. Receipts and Expendi-
ture from 1882 to 1896 inclusive ... ... ... ... 569

X. list of Electors of the South African Republic ... ... 573

XI. Statistics of the white population of the South African Republic ... 574

XII. Statistics and Census of the native population of the South African Republic 575

Xin. The Pass Law ... ... ... ... ... ... 576

XI Y. Schedule of native wages, Witwatersrand ... ... ... 581

XY. The Liquor Law ... ... ... ... ... 582

XYI. The Gold Law (S. H. Barber's edition) ... ... ... 596

XYII. Extracts from the Netherlands Railway Company^s Report for 1896 ... 677

Index ... ... ... ... "-... ... Oo9

THE INDUSTRIAL COMMISSION

OF ENQUIRY.

The Members of the Commission, Messrs. Schalk W. Burger, Member Executive Members of the
Comicil (Chairman) ; J. S. Smit, Government Railway Commissioner ; Christiaan ^°»°»***o°-
JouBERT, Minister of Mines ; Schmitz-Dumont, Acting State Mining Engineer ;
J. F. DE Beer, First Special Judicial Commissioner, Johannesburg; Thos. Hugo,
General Manager National Bank (financial advisor); E. Brochon, A. Pierce,
Manager Natal Bank, Johannesburg; A. Brakhan, (advisory members,) opened
the enquiry at Johannesburg on the 20th April, 1897. On the 27th of the month
Mr. Jas. Hay, President of the Chamber of Mines, and Mr. G. Albu, Chairman of
the Association of Mines, were added to the (^mmission as advisory members.

The Chairman explained that, in accordance with the powers entrusted to it by the Appointment of
Executive CouncU, Minute B 4,365 of 1897, this Commission took upon it to institute ^'«*^°^<>°-
a thorough and searching inquiry into the alleged grievances of the mining industry
as set forth by those interested ; and the latter, as many of them as should give in
their names to the Secretary, would be called upon to inform the Commission
personally of their grievances and difiiculties. As necessarily consequent upon
and connected with the mining industry, the following subjects would be taken mto scope of En
consideration, namely, the labour question, traffic rates, taxation, dynamite, trade, ^"^^^
agriculture, and other matters associated with the said industry. To those who were
interested opportunity would be given personally and by way of evidence to en-
lighten the Ciommission on these points, in order to place it in a position to lay before
the Government a true report of affairs, and, where possible, to recommend the desired
alterations and improvements. The purpose and tendency of the (^mmission had
already appeared from the notice in the Staatacourant and from the resolution already
adopted by the C!ommission. But since the scope of the C!ommission embraced a great
deat and was of the highest importance for the land in general, and for the gold-nelds
in particular, and as he understood its results were anticipated with interest, he took
the liberty, and deemed it not out of place, at the commencement of its proceed-
ings, to offer a few further remarks on oebalf of himself and fellow-members. He
had noticed that the press had already indulged in all manner of reflections and
predictioDS regarding the labours of the Commission.

Chairman's Address.

^^^tari °' ^°™ ^ hope, continued the Chairman, I shall not render myself guilty of anticipating

" ^' the result of our labours ; but I desire to limit myself to the following points, with
the object of making our position clear to you, so that we may be able to reckon
the more upon your valued assistance and co-operation :

(a) The raiaon d'etre of the C!ommission.

(b) Ascertaining the causes of the alleged grievances.

Witwatcrsrand Goldfields in general, and the reason for the same.

(d) After inquiry into and investigations of affairs, to propose amendments

to the Government

For the rest, the Commission was prepared to deal with the requirements of the
mining industry in a sympathetic manner, but it must first appear to the Commission
what the actual cause was of the alleged condition of affairs, and if this cause was to
be ascribed to the high rate of wa^es, bad administration, burdensome taxation,
excessive rates of transport, foreign influence and policy, or to one or other of
the said causes.

The Chairman enumerated the personnel of the Commission, and explained that
Mr. Thomas Hugo was financial expert, and Messrs. Brochon, Pierce, and Brakhan
were advisory members of the Commission.

w^M of Gov The Government was keenly alive to the importance of the mining industry, and

for that reason was determined to probe the alleged grievances to the bottom. Why
he said " alleged " was because neither the Commission nor the Government were
certain that any such grievances existed. What the Government and Commissioners
wanted was a clear statement of fact, and if there was any blame or culpability to be
placed on the side of the Government, such as excessive taxation, etc., and other
burdens, the Commission would promptly advise the Government on those points.

The indu8tr>'8 with the view of having matters remedied. On the other hand, they wanted clear

*^" and unreserved and honest statements from the other side as to what was the origin

or cause of the present depression. The evidence would have to be given fully and

boldly and without reserve, for the Commission wanted to know whether this

depression or reaction was due to over-speculation or other causes.

Over Specula- It was by the mining industry ana those interested that the grievances would

^°"' have to be enumerated. The present condition of things was not wholly unexpected

by him (the Chairman). Those who had seen the wild and hysterical state of affairs
during the boom had expected a reaction. He waj3 of opinion that in some instances
more capital had been put into the ground than certain tracts of ground really
justified. Capital had been invited from European centres ; the thousands who had
since flocked into Johannesburg thought that gold was to be picked up in the streeta
The present state of affairs was not unknown or unprecedented in other countries ;
indeed, in South Africa the same thing had occurred in the Diamond Fields. First
there was a period of excessive speculation and then the reaction, until conditions
were restored to their normal state.

Reasons for De- Mr. J. F. DE Beer read the second portion of the Chairman's speech, which stated
pression. ^j^^^ ^j^^ Commissiou was keenly desirous of obtaining a true statement of affairs, and
to know whether the present depression was ascribable to excessive taxation,
dynamite, railway rates, labour question, or other burdens, foreign interference, etc.
They expected from the mining industry evidence that would be accompanied by
accredited statistics. It seemed to him that half the trouble was due to the matter of
white labour, which absorbed 50 per cent, of the total working cost. He also
referred to the machinery contracts which were invariably placed in England or
America. If this machinery were made here it would create work for many who

Mr. James Hay's Evidence.

were at present deprived of their employment on the mines. He hoped for the
hearty co-operation of the mining industry in these matters, and trusted that the
operations of the Commission would be conducted with harmony, and that some plan,
might be evolved by which the industry would be restored to its brilliant, normal
state.

The first witness called was Mr. James Hay, who was sworn by Mr. J. F. de Beer
and said : I am the Chairman of the Chamber of Mines in Johannesburg.

Mr. de Beer.

You have seen that various memorials have been presented from the Chamber ^ti"f"«* ^*y*"
of Mines to the Government regarding the grievances alleged to exist in connection *''''*
with the mining industry ? — ^Yea

Will you give us evidence upon the points raised in those memorials ? — ^At the
present moment we have only as yet heard, that is since Friday afternoon, about the
sittings of the Commission. It is a very wide Commission. The question is, what
evidence do you wish me to give ?

We want to know everything about these grievances, everything in your power
to give. And we look to you to mmish such information as representmg the Chamber
of Mines and, of course, the mining industry. — The Chairman has made a statement
as to the objects of the Commission and what it ought to embrace, and I think he said
it would be for the benefit of the people that they might know all the points.
I do not understand Dutch sufficiently well to follow all that has been said, but if
the points are put before me that I am required to answer, I will come prepared
to oo so. It IS a very wide subject and, generally, I do know all' about the
indostry. but there may be many points about which the Commission require infor-
mation, technical and otherwise, which, if I only knew what was required, could
easily be provided.

Chairman.

The first notice was published on the 14th inst

Mr. de Beer.

We want the fullest particulars, as a copy will be submitted to the Volksraad.
We would like you to speak about what is contained in the memoriala — ^This
(producing paper) berins with the liquor law. We approve of that law, and only Liquor Law.
afik that it be more efficiently administered. That is what the memorial embraces.
There is another matter, that of dynamite. The report of the Commission appointed Dynamite.
by the Volksraad shows that the concessionaires have not complied with their
^xmditions, and that they have secured very large profits from their concession.
The principal point in the memorial is that the Government should afibrd relief by a
reduction being made in the price of dynamite.

Chairman.

That is one of the points upon which we can begin, and about which the Com-
mission wishes to hear evidence. The required reduction of the cost is said to be one
of the existing grievances, its expense being one of the alleged causes of the
depression, and it now rests with you and the representatives of the industry to show
that to be a f€tct. — I will be able to produce evidence and statistics with that object.

Witness.] 1 think, perhaps, it would simplify matters very much if I put my
views forth as to what the industry requires, and then it would be for you to say
what meets with your approval, and what can be pursued fmrther as you wish. We
bad better follow some plan or we shall get into hopeless confusion before we have
done.

Mr. James Hay's Evidence.

Claniflofttion of
MkiM.

Mining Costs.

White Wages.

Native Wagesi

Chairwxin.

We do not want to ask you anything you do not know; but you must
understand that this is a Commission of Investigation. There are certain alleged
grievances, which must be reported upon to the Government. There are several
complaints as you know yourself; but the onus lies on the mining industry to
show where the grievances lie in order to enable the Government to deal with those
grievances.

Witness.'] If you will allow me to make my statement first it will simplify
matters very much. The minmg industry here consists of practically two classes of
mines ; those that pajr and those • that don't pay. What I understand this Com-
mission is to enquire mto is whether it is possible to work those mines in such a way
as to return a profit. Now, in working those mines the cost is divided into two
classes, wa^es and material used in those minea Wages are also divided into two
classes, whites' wages, and blacks'. The cost of white wages depends upon the law of
supply and demand, and the cost of the living of the white people. If the Commission
desire to go into the question of the wages of the white people, we can prepare
tables as required. The cost of living of the white people depenas upon the price of
the food they consume, and that is made up in this country largely by the charges on
railway carriage and Customs dues, in addition to the original cost of the goods
at the place where they came from. The next question is that of native wages,
and it is a very important one, not only for the mines, but for the farmers, and
everybody who requires labour. I think we are all agreed that the natives are too
higUy paid in this country. But the difficulty is, how can the w^es be reduced, and
I am not sufficiently acquainted with the natives of the Transvaal, and to
the North, and in the Portuguese territory, to speak de^nitely on the matter,
but it is quite possible for the Commission to have those here who are better
able to say whether these wages can be reduced or not. Then another question is the
cost of goods, which are supplied to the minea That divides itself into several minor
questions. The first probablv that we could deal with would be that of dynamite,
because that is an article which is a subject of monopoly in the country, and the price
at which it is sold is beyond our control. The Volksraad appointed a commission to
inquire into this question, and they made a report which is embodied in the trans-
lation I now hana in. It gives the quantity which is used, the price at which it is
supplied to the Government, and the profit made by the concessionaires over and
above the profit made by the manufacturer of the goods in Europe. If the Com-
mission wish it we can supply further evidence. Then the next item of large use at
the mines is coal, and the price at which it is delivered is affected by the railway
charges. The whole question of the railway matter will be gone into by the Com-
mission, I presume, because that question increases .the cost of the goods, food, and
stores which are required at the mines, and I think we are quite right in saying that

Railway Profits, ^j^^ railways, uot Only of the ;Transvaal, but of Natal, Cape Colony and the Free
State have made very handsome profits out of the carriage of the goods for the
industry, and that they could reduce their tariffs without great injury to themselves.
Broadly, that is the position of the mining industry. There are other questions

^^^ "*^°' involved. The Volksraad have already passed a new Liquor Law, which has acted
favourably to the mining industry ; they have also passed a Gold Law, and these two
laws if emcientlj'^ and properly carried into effect would be of great advantage. The
natives would not be able to get drink and would give full work, and if we had a
good detective department we would be able to retain the gold which we now believe
IS being stolen from us. That practically sums up the position from the mining
industry point of view, and on these heads we can supply the Commission with

Dynamite.

Goal

Mr. James Hay's Evidence.

any information that is required to facilitate their investigationa I should like to
know if the Commission wish to approach the subject in that way, or if they have
acme arrangement of their own.

Mr. Jovhert

We seem to be starting in the middle of the matter. What I would like to Fioution of
know first is if the child was bom a healthy child ; whether the primary intention **'"•*
of many of the mines was fair and honest. Were they floated according to value ? —
That would be impossible for me to say.

Mr. Smit

Are you interested in mining other than as Chairman of the Chamber of Mines ?^
I am a director of four companies — the Robinson, the Ferreira, the Jumpers and Paarl
Central, and also of a coal company.

Are they paying mines ?— ^he first two are absolutely paying ; the Jumpers has
paid at intervcds, and the Paarl Central has never paid.

Is there only one Chamber of Mines ? — ^There are two. Formerly they were one,
but there was a split

Why ? — For various reasona One object, however, both have in view. After the
disturbances which occurred in the beginning of last year feeling ran rather strong
between different parties interested in the mines, with tne result that some members
decided to have a new Chamber of Mines for themselve&

Were they political differences ? — No.

What are their different names ? — One is called the Witwatersrand Chamber of
Mines, the other the Association of Mines of the South African Republic I am chair-
man of the Chamber of Mines. Mr. Albu is chairman of the Association of Minea

You say in a petition that the liquor law operated at first very satisfactorily, ^^JStTaw ^*'
but not afterwards. — ^At first the people were afraid to sell liquor to the natives
because they felt they would be apprehended and pimished, but now they find
tiie police supervision is not as s^ood as it ought to be, and they are selling liquor to
natives now at a higher price and making a profit.

The police supervision has not ceased, but the people used to be more afraid of
the law ? — Yea

If there were a better staff of police and detectives it would be carried out
properly ? — I believe so.

Before the dynamite monopoly existed, what was the price o£ dynamite ? — i>yn«nJt«-
I cannot say ; from memory I think it about £5.

At present ? — About £5 7a 6d. Of course the conditions of the country are altered
since that time, the nearest point of the railway then being Eimberley.

At what price at the present moment could dynamite be landed here ? — ^At less
than 40a

What guarantee have you that the manufacturers would not form a ring to keep
up the price if the present monopoly was removed ? — ^There are sufficient manufacturers
now in the world, and the competition is so great that we could make contracts for
the supply at reasonable pricea There are no patente in existence. Anybody can
make dynamite.

Mr. Jovhert.

What is the price of dynamite at the factory ? — At the factory, 85a
What is the imported price ? — 40a or lesa

Mr. James Hay's Evidence^

Baflway Rates.

Mr. Schmitz Dumont

You have also said the freight charges are too high ; what reductions do you wish
made in order to make the poorer class of mines pay ? — The rates on coal ought to be
reduced to the lowest price the railway can aflFord to carry it for.

And as to machinery and other things ? — I am not a railway expert, and cannot
particularize what ought to be reduced specially.

What is your opinion as to the reductions on food and machinery carriage, in
order to make the poorer mines pay ? — I think the railways could make a reduction of
30 per cent.

What is the price of a ton of coals delivered at the mines ? — About a pound.

How much could be saved out of that ? — From Brakpan the cost of carriage is
5s. Id. per ton; then there are siding charges of 2^d. per ton, and additional charges
on taking it from the sidings to the mines.

What is the objection to coal being delivered in sacks instead of in bulk ? — Th&
Railway Company declines to give sidings where the trucks can be oflF-loaded. The
train comes along with the coal, and they give you about ten minutes to take all the
coal off, and unless it is in bags it cannot oe taken off in time, and the line would be
blocked.

Would it be better in bulk ? — Yes. The saving in case of bags would be Is. 6d,

ton ; the filling and stowing another 6d. per ton and another advantage would
that the coal, when it is taken out of the mine, could be taken up in big blocks,
instead of being broken up small, and causing the waste of coal, which, of course, has
to be paid for by the industry.

Could you suggest a remedy against that, and also to bring about a reduction in
kaffir wages ? — I think you could get someone who could more satisfactorily answer
these questions.

What do the kafirs get ? — ^About 2s. a day and their food.

What do you think a fair wage ? — I think they ought to work for Is. 3d. or la 6d.
per day and their food.

Is there much trouble to get kafirs to work ? — ^At times. Just now they are
plentiful.

Mr. Srait

Eauway Divi- Do you mean that the railways in this State or outside are paid too much ? —

dends. Speaking from memory, on the Cape line they make a profit of nine per cent, on their

capital, the result of carrying goods for the Transvaal ; they make about a million a

year profit ; and in Natal, last year, their profit was about three-quarters of a million,.

the bulk of which is made out of carriage of goods for the Transvaal.

In arriving at the thirty per cent., have you taken into consideration the relations
between the capital and the earning power ? — The question I answered was on goods
used by the mines ; the railway carries everything.

Do you mean they would make nine per cent, if they deducted thirty per cent.

What would remain for the railways after thirty per cent, was deducted ? — ^It would

be impossible for me to say. At any rate less than nine.

Ferreira and What dividend docs the Robinson mine pay ? — 13J per cent. The Ferreira pays

£22"°" Cap. 275 per cent. The capital of this company is £90,000, that of the Robinson is

£2,750,000.

Is it fair to take off" from the 9 per cent, railways and nothing off" these mines ?
— If all the companies were like the Robinson and Ferreira there would be nothing
to say. I do not come here to ask for a reduction solely on their account.

Kaffir Wages.

fir. James Hay's Evidence.

Would it not be fair to make the good-pajring companies pay for those that do
not pay? — The question from the capital point of view has not been arrived at
that way. The Ferreira, for instance, has a small capital ; when they wanted money
to open out, and working machinery, they were able to sell shares at a very high price
to provide the necessary capital. The cost to open up the Ferreira was £450,000 ;
that is, the cash required to provide machinery and to open out ; and if you calculate
the profit on that, you will find that reduced the profits very much.

The Jumpers — did that pay better than at present ? — ^1n o.

Did neither Jumpers nor Paarl Central pay from the beginning ? — The Jumpers "^"^p^ ^" '•
paid a dividend the first month, but not another for about four years, and then it
paid a dividend ; another in about two yeai*s more, and there has been no dividend
since January last year.

Can you explain why the Jumpers paid a dividend in the first month, and then no
other for four years ? — They had a very rich leader on the surface of the ground, and
when they took that out, it was several ounces to the ton ; the capital being small, they
paid a dividend, as it cost next to nothing to get out the gold. Now that rich leader
disappeared, and the reef is very much poorer. I may explain it thus : A reef may be
profitable, it may be rich, and the cost of getting out a ton of ore is not so great as the
gold obtained ; if that reef becomes poorer the cost would be the same per ton, and you
would have less or no profit ; then comes the question that the reefs are not all con-
tinuous. [The witness here exemplified his meaning by plan.] It is the dead work
which increases so largely the cost, it being one of the things no one knows until they
get down. Some of the reefs are so broken up that the cost is more than the value of
the gold in them when extracted.

Since when has the cost of dynamite been reduced ? — Just about the time the Reduced co«t
concession was given the last time. About 1893. That was brought about by the ^°*" **•
fact that, when we proved that the dynamite was not being made in the country, the
Government issued permits, and we were able to go and get the dynamite elsewhere.
Nobels came in and sold at a lower price.

Mr. Brakhan,

Can you tell us the railway freights on bulky articles in Europe and elsewhere ? —
Mr. Albu will be able to give you that information.

ChaiTman.

I would very much like to get some statistica — If the Commission would state
what they require, I will have it got ready.

We would like statistics on everything in connection with the importation sutistics re-
by railway. As far as the matter has gone now, it does not bring us to the point ^'^^"^
yet. We must have figures before us to show that dynamite can be sold
cheaper, also the railway charges, not the profit the railway makes. We want to know
if a certain reduction be made, what eflTect that will have on the working of the mines.

Mr. de Beer,

We want reliable statistics, and I want to ask you whether you know what
percentage of expenditure the labour forms. Please divide it into white and black
labour. — Mr. Eckstein, at the Rand Mines meeting, recently, made the following percentage of
i statement : — He says these costs are mainly made up by half-a-dozen principal items ; ^^^"«f co«t«.
white labour, 28 per cent., or Ss. 3d. per ton ; black labour, 23 per cent, or 68. 9 Jd. per
ton; explosives, 2& 11 Jd. per ton ; coal, 2s. 4Jd. per ton. I hand you the report as
reail at the meeting.

8 Mr. James Hay's Evidence.

Would these remarks apply to all mines, or only those working under ex-
ceptionally favourable conditions ? — Mr. Eckstein made his report from twenty seven
outcrop companiea

If we take the mines in general, would it be right to take 14s. for whites, and
lis. 6d for blacks per ton ?— No, that would be too high.

Do you consider the statement you lUst handed m to be a fair statement ? Can
we take it as reliable statistics ? — Yes, I think so. I have not checked it.

According to your statement, the cost of some mines, labour alone, is over 50 per
cent, so that more than half the cost is for labour ? — Yes.

Is labour then the only question to be solved ? — Yes, the question is how can it be
solved.

That is why we want your co-operation in the matter. Amongst the expenses of
labour, do you include all salaries ? — Yea

All directors* fees, etc. ? — I cannot say. I should think so.
N^^^^Labour You say the native labour is far too high. You will admit that other industries
cannot possibly compete with it at the present price of native labour. Has the
Chamber of Mines ever inaugurated any scheme to get cheaper labour ? — Yes, many
schemes. We have had a separate inquiry in the matter to see if natives could not be
brought from anywhere cheaper, but so far the matter has not been a success.

Is not one reason, that the native is not willing to work, and cannot be compelled
to work ? — Yes, especially in the Transvaal.
^^Lobour.^*^^* Have you ever submitted a scheme for compulsory labour by natives? — No,
I think not.

Do you think it would be desirable to get forced labour ? — Yes.

Against fair pay ? — Of course.

So that the salaries would be equitable, comparing favourably with what they
could earn elsewhere ? — Yes.

Of course any statement you make here is in the capacity of representative of the
Chamber of Mines and director of four companies ? — ^.Well, it must be taken as my
opinion. There may be many members of the Chamber of Mines who do not agree
with my opinion.

About the liquor question, you say it is a good law for the industry; do you mean
generally or as far as the mines are concerned. ? — Both.
Nnmber of Li- There are about 400 licences in Johannesburg proper. According to the new law
qaor cenBes. ^j^^j.^ ought to be Only 60 or 70. Do you think it would be to the interest of Johannes-
burg and the inhabitants that the remainder should be abolished ? — I think the 60 or
70 embrace wholesale as well as retail licences, and in that case there would be too few,
because there must be enough not to give the wholesale houses a monopoly, and the
hotels should have a larger proportion in Johannesburg than in smaller towns.

Do you consider wholesale liquor licences as commercial licences ? — Yes.

Mr. Joubert

You have a book here showing the position of 27 dompanies ? — ^Yes.
There are 200 mines, and only reference is made to 27. — Yes, I have only
referred to the Robinson and Ferreira, that is why I brought the book.

Nothing about all the other mines not referred to in the report? — No, but if
anything more is wanted it can easily be supplied.
^ «nment ^to ^^ responsc to the complaint about high wages, have the Government taken no
relieve Native stcps to givc relief ? — The Govemmcnt have expressed their willingness to do so.
l^tB. ^"* The Commissioner of Natives was here to inquire into the matter some time

ago ? — Yep, I was out of town at the time.

Mr. Q. Albums Evidence.

It was done after consulting the Chamber of Mines ? — Yes.

The kaffirs are prepared to accept a reduction of wages as proposed ? — Yes. ^ativewiee
The pay was reduced ana the kafBrs agreed to it ; but we want a further reduction.

You must admit that the Government have assisted as far as possible in
the matter ? — Yes, in that matter.

Mr. Hugo,

Regarding this question of cost in wages and materials, has not the falling in
the grade of the ore something to do with it ? — ^That depends upon the way the ore is
taken out in many casea There is no uniformity. In some mines you have what is
called a south reef, which is sometimes rich, and then you might have a reef to the
north of that, which would be poorer. There may oe more south reef crushed one
time than north, and of course that would affect the question.

You have handed in a report, and we must go by it ? — I came here unprepared,
and put my hand on that document as one that could be relied on at once. We can
prepare whatever is required. That report merely gives some of the ideas.

Mr. Geo. Albu, Chairman Association of Mines, wa»s put into the witness chair, mj Aibu's ev
He stated he was a Director of several companies, and held a very large ^^^'
interest in the mining industry.

Mr. de Beer.

The object of the Commission was fully explained by the Chairman yesterday.
Are you prepared to give your evidence seriatim ? — Yes.

Just as you like, as Mr. Hay did yesterday ? — Yes ; I should like to make a state-
ment first

Chairman,

I would like any declaration of that kind to be made in writing and handed in.
It would contain more information than a verbal statement.

Mr, Albu then made the following statem^eni,] Mr. Chairman and Gentlemen, — commisdon ai
Before submitting to your questions, I think it would be right to say a few words Spe!*** ^ ^
about the work which is before ua I can assure you, I and my people in Europe have
hailed with great satisfaction the appointment of this Commission to go into the
malady, as it were, of the mining inoustry. The position which you are called upon
to perform is that of the operating surgeon, together with the members of the mining
industry, who will act in a like capacity. The mining industry is at present ailinff,
and that the Government is cognisant of the fact is proved bv the appointment of this
Enquiry. I can assure you it is my earnest desire, unbiassea by €f.ny party feeling, to
give you such information as will give you a free and open bird's eye view of the
position of the mining industry at the present moment. It is my desire to see the
strength of the State and the strength of the mining industry renovated, as it were.
I can only compare these two, the State and the mining industry, as twins — twins not
in the ordinary sense, but which, by some freak of nature, have grown together at one
point. The welfare of one must of necessity affect the welfare of the other. The
mining industry, I may say in answer to Mr. Joubert, is a child healthily born, but is
beginning to ail for want of proper nourishment — then the welfare of the State must
suffer as well. Now, going bolcuy into the question generally — it is no earthly use Mining indngtr
picking out one or two mines of exceptional wealth — these are not the pillars of the u?thia^whoi
State The State is supported by the whole of the mining industry — the mining
industry from east to west, for a distance of about 40 miles. It was simply a fallacy
to pick out just one, two, or half-a-dozen mines which are rich. In illustration of this,

10 Mr. Q. Albums Evidence.

if the conditions are not changed, and changed soon, the pillars of the State must fall,,
and the whole burden will be put down upon the shoulders of these few rich mines^
and which you will a^ee with me are not strong enough to carry the burden of the-
State, and they must m consequence fall too. It is, therefore, advisable in dealing
AdvMtagM of with the question, as I said before, not to pick out a few mines. You must not forget
whole Mhiin^ that it has been the most fortunate day for the Transvaal that such mines as the
Industry. Eobinson, Ferreira, and Wemmer were the first mines to be discovered. If one of the
poorer mines had been the first to be discovered, you could never have induced the
capitalists at Home in Europe to invest any money here ; therefore it was a fortunate
thmg that the gold was found in these rich mines first. So far then, these rich mines,
had served their purpose in having drawn the attention of the European capitalists
'"iE2d*°7ndu»' ^ ^^^ Transvaal, ana in enabling us to try the poor mines and open them up. You
try to^the Re- must Understand further that an industry like the one in the Transvaal has never
pubUc. existed before in the world. I do not say that in order that you should have an

exalted idea of the industry, but I would simply point out to you the importance of
this industry to the Republic. Now, you must further understand that we have been
novices in working this industry. We could only gain our experience, if I may say so,,
by the capital which we have put into the mines. We have found out where we have
made mistakes and where we have been successful. To earn experience costs a lot of
^^^PP^rt^Euro- money, and it is still costing us a lot of money. We have not attained perfection in
5S. the working of our mines yet. I know that the European capitalist is perfectly

willing to support us financially to earn this experience, provided that the Govern-
ment will treat this industry in a fair and equitable manner. You have no idea the
impression which the appointment of this Commission has made at Home. . I sin-
cerely regret that we have not come together — the mining industry and the Govern-
ment— years ago. If we had, many sad hours might have been saved to both parties^
Now, as I said before in the beginning of my explanation, two surgeons are necessary
to operate upon this healthily-born child. The Government is one physician and the
leaders of the mining industry the other. I know the seat of the disease, and yoa
have to operate upon this child immediately. I would point out to my colleague, the
other surgeon, the Government, the two questions which affect the ultimate success of
the mining industry are the Railway question and the Dynamite question. Now, I
assure you I do not point out these things in order to blow into the same horn as
everybody, but that is the seat of the disease which can be treated by the Government.
Railway uriif. rp^ start with the railway tariffs. In European countries the Government who owns
the railway does everything in its power to bring the goods which are necessary for a
certain industry at as cheap a rate as possible. 1 will give you a small instance which
came under my notice only the other day. English firms used to send coal in great
quantities to the northern part of Germany. The nearest coal mine in Germany was
about 340 miles away. In order to compete with the English coal, the Government
immediately reduced the freight on coal to a quarter of a penny per ton per mile — in
fact, the railway is regarded in Europe as the means of bringing all that is necessary
to foster a factory or industry, and to bring the necessary machinery and necessary
material to the site of that industry at as low a cost as possible. What have you got
here, gentlemen ? Our coal transport costs us from the coal mines to the gold mines
about 68. per ton, or an average oi about 2 Jd., and including the charges made for
trucks, 3d. per ton per mile. I say the railway should, if it is absolutely necessary to
foster the mining industry here, bring that coal to the mine at cost price even, for
they will be amply compensated by the flourishing state of the industry, and their
profits will be derived from other sources. I will give you a few instances. Firsts
that of galvanised corrugated iron from England. The shipment from there costs^

Mr. a. Albums Evidence. ii

approximately, free on board, £900. The approximate freight — the ship frei^t — to
Deiagoa Bay is £150. Now we come to the railway carriage from Delagoa oay to
Johannesburg, which is £580. From Durban and East London it is £660, and from
Port Elizabeth to Johannesburg £700 ; so that the shipping charges from England
are increased by 100 per cent. Then, as to pitch pine. 825 tons of this
material cost in America £1,100 ; freight to Delagoa Bay £1,300. It is expensive
on account of these 825 tons almost filling the ship. From Delagoa Bay to
Johannesburg the charge is £3,093, so that the railway fare from Delagoa Bay to
Johannesburg is three times the amount of the original cost of the stuff in America.
From Durban to Johannesburg it costs £3,650, and that means that the wood, which
cost in America £1,100, costs, if you ship it by Durban, about £6,000. A cask of
cement, which weighs 4001bs., costs 6a 6d., freight to Durban 4a 4d., Durban to Johan-
nesburg £1 78., and duty 12s. 3d. The duty alone on that commodity, which we
require for building here, is 250 per cent, on the original cost. Pipes, that is iron

Sipes, cost in Europe £10 per ton. The freight is £2 10a, and from Port Elizabeth to
ohannesburg £8. One more item is that of deals, which generally come from Sweden.
A cargo of 8in. x 9in. deals costs free on board £1,000. The freight to Delagoa Bay,
Durban, and Port Elizabeth is £500; and railway carriage to Johannesburg is £1,600.
From Delagoa Bay and Durban is £1,900, and from Port Elizabeth to Johannesburg
£2,000. I am giving you details concerning these materials simply because they
require those heavy materials to build over batteries and timber over shafts. If we
could do these things with cheese, I might give you the price of cheese, but it is heavy
material which is necessary. In those tremendous charges of the Netherlands Rail- Rates of Cap
way you give the Colony and Natal a very good handle to turn the same organ. It Sdiways.
had been repeatedly said that the whole of South Africa considered the Transvaal an
orange, and everybody sucks it, and they will suck until the juice has been sucked out
of it and there will be nothing left. You cannot blame the other States for saying :
Why should we reduce our railway rates if you don*t do it ? In fact, the colonies go
further. Not only are they not satisfied with charging us heavy railway rates, they
charge us transit dues as well. This is not done anywhere, so far as my knowledge
goes, in the world. They excuse themselves by saying that they are building large
docks, etc., but they forget that they are charging very handsome dock dues, and the
very fact of them charging us transit dues is a piratical act committed on the State.
But you cannot blame them. It is for the Government to see that these railway rates
are reduced, and then we have a just case for the colonies to do likewise. Is it not
sufficient and conclusive proof to you, gentlemen, that the Cape Government Railway
made last year 9 per cent, profit— divisible profit — and all from this northern line, for
I happen to know myself that the other lines did not pay. Is it an argument to say Distinction be
that because the Robinson and the Ferreira companies are paying large dividends why M?°RiiwSj
should we expect the railway companies to reduce their profits ? You must always o«ropanie».
consider, gentlemen, it is not the railways which make the gold mines, it is the gold
mines which make the railwaya If we had no gold mines here we would have no
railways, and, all over the world, if the Government derives from its railways 3 J or 4
per cent, then they are perfectly satisfied. The Government's duty is to foster the
mdustry which is the staple industry of the country, and if that industry flourishes,
then the welfare of the State is assured. Now, gentlemen, another important item.
I don't want to go into details as to what profits the concessionaire is making ; I only costof Dynamit
wiah to point out, gentlemen, that an article which costs to manufacture at Home
18a. 6A per case should be paid for hy us 858. And it is not an article which is used
in small quantities. The Transvaal is about the largest consumer in the world of this
article, and must not we look idiotically foolish — that we, as the largest consumer, pay

12 Mr. Q. Albu's Evidence.

(for an article that costs 18s. 6(L) 85s., and when the Government only makes 5s. per
case over that. I don't think you can find its equal anywhere in the world, and I
think the Qovemment will see the fallacy of upholding a concession which is not
carrying out in the first instance its object, and which has so far shown an utter
apathy to trying to meet the mining industry here. Years ago, when the railway
was built, you fixed a certain rate of tariff for the work which had to be done then by

^ DynSaSe" **' '^^ railways The same with the dynamite. You fixed the rate years ago when the
consumption was about 40,000 cases. It had run to the respectable quantity of
108,000 cases last year. I can assure you if the industrjr is supported by the Govern-
ment as it ought to be, then the consumption of dynamite will soon increase within a
short time to 300,000 cases. This fact alone should have dictated to the dynamite
monopolists quite a different policy to the one which they have carried on so far. The
same argument applies to the railway people. To illustrate the case to you. If I ^
to my municipality and ask them to allow me to build a tramline, the price they will
allow me to cnarge for each person will be high if the traffic is but a limited one. If
the Government does its best, and we do our best, the work can be accomplished.
Opinions on this matter, of course, differ, say 10a per ton, some 6s. per ton, and others
5s. per ton. In this way we will be enabled to work the mines, wMch, at the present
moment, work without any profit, profitably. We do not complain of the fact, gentle-

Effects of econ- men, that there are a good many mines in the Transvaal that won't pay if they got

omic reUef. dynamite and native labour for nothing. But these mines we can well leave out

entirely in our calculationa They were concerned mostly with the mines between

the eastern and western portions of the Witwatersrand, and if these can work at a

reduction of 5a only per ton, then you will see that prosperity will return to Johan-

ProbjWeeffect ncsburg. I don't Imow whether you are aware that we are at present in a condition
o dep on. ^^ gp^^t depression, and there is no improvement in the state of affairs, aj3 the Euro-
pean capitalists are tired of putting in more money in a place which has to pay enor-
mous prices for its principal commodity, dynamite, ana where such extraordinary
tariffs exist as those shown by our railway tariff. As a friend of the Government I
can only point out to you, gentlemen, that if this depression lasts you will soon feel
I the effects in your own Budget. It is, therefore, necessary for our benefit as well as

for the sake of the welfare of the State, that we should work hand in hand together
to foster this industry, and to bring it to its height. There are a few minor questions,

Liouor Law and gentlemen. For instance, take the Liquor Law, which was a very good one, but the

tionfr*"*^^ administration of the law was very lax. What does it matter to a man when he has

paid his £50 fine. You have the best proof of this in a case in the Meyer & Charlton

m Jeppestown. There is a canteen there that has been trapped no less than three

times last year, and has received its licence, only in a different name this time.

Chairrryan,

Its name ? — The name was Judellsen, and the place used to be called the Park
Bar. The drink, gentlemen, is the cui-se of the place, and unless the law is strength-
ened so that there is more severe punishment than a fine of £50, the traffic will
continue rampant as it is at the present moment, and will only increase. Another
question which affects us, and cuts very, very deep into the mining industry, is gold
tnef ts. What we want, therefore, is an honest Detective Department, without which
you will never be able to detect the criminala The other questions we have to deal
with are native labour, white labour, and the general management of our affairs, and
<^ver^pitaii«a. \ can assure you that the leaders of the industry are working to see whether we can
improve mattera It is no use, gentlemen, saying, " Are there not mines which have
been over-capitalised ? " There may be mines over-capitalised, and I not ashamed to

Mr. Q. Albu'8 Evidence. 13

say that there are mines which are over-capitalised, and there are also mines in
existence which have no gold, although the property was reported to be very rich at
the time of the flotation. We would have been a very extraordinary community if
Uiere had not been some of us who had taken advantage of the people who were
ready to put in money from Home. This sort of thin^ you find when there is a boom.
You have had this in America and Europe. It is always in such times, flourishing
times, that flotations are made, the basis of which is not very sound, but that has
nothing to do with our mining industry whether there are mines over-capitalised.
Hie question is " can you work a mine with a profit ? " Never mind what its capital
is. By way of instance, I may mention to you that I myself floated a company a few
years ago, the property of which consisted of 250 claims, for a sum of £10,000 cash
working capital, and the total capital of the company was only £10,000. Although
they had £10,000 cash and 250 claims, I lost all the same, for tne rich reef I thought
I bad, had given out, therefore whether it had been a million or £10,000 capited I
would have lost everything. Mr. Chairman and gentlemen, I thank you for the
patient hearing you have given me, and I can assure you from the bottom of my
heart it is only my desire to see this State flourish, together with the mining
industry.

I would like to have reliable statistics of the freight of coal, etc., in the Transvaal
and Colony. — I will work out whatever statistics are required, and hand the same in
to the Secretary.

Mr. Jovbert,

I would like to hear the resolution pcussed by us in our meeting at Pretoria, as Mode o[^p^-
to in what order we are going to work, so that I cannot again be said to be out of x^ion. ^
order like yesterday.

Mr. de Beer,

You gave us a very full explanation, Mr. Albu, as to what you expect from the
one side, the Government ; but I would like to know what is going to be done from
the other side, the industry.

Mr. Jovhert,

Before we go any further I want to hear that resolution of ours, else, I won't ask
another question. I do not want to be insulted again.

Chairman.

Any member can ask any question, but I think I, as Chairman, can correct

anybody if out of order.

Mr. Joubert.

I appeal to the internal regulations of the Commission.

In order to give Mr. Joubert an insight into the regulations as desired, the
Chairman adjourned the sitting for a quarter of an hour, and the public, as well as
the press, were asked to leave the room.

Mr. de Beer.

On resuming the sitting, Mr. de Beer repeated his question to Mr. Albu, and
asked his opinion about the reduction of native wages.

Witness.] The reduction of native labour is necessary for two reasons, the one is
to reduce our whole expenditure, and the second has a very far-reaching efiiect upon
tiie conditions which may prevail with regard to native labour in the future. The

14 Mr. Q. Albums Evidence.

native at the present moment receives a wage which is far in excess of the exigencies
of his existence. The native earns between 50& and 60s. per month, and then he pays
nothing for food or lodging, in fact he can save almost the whole amount he receivea
At the present rate of wages the native will be enabled to save a lot of money in a
couple of years. If the native can save £20 a year, it is almost suiScient for him to
go home and live on the fat of his land In five or six years' time the native
population will have saved enough money to make it unnecessary for them to work
any more. The consequences of this will be most disastrous for the industry and the
State. This question applies to any class of labour, and in any country, whether it be
in Africa, Europe, or America. I think if the native gets sufficient pay to save £5 a
year, that sum is quite enough for his requirements, and will prevent natives from
becoming rich in a short space of time.

You say the native does not require luxuries, and if he has worked for a year he
has saved enough to go back to his kraal and remain idle ? — Yes.

Can you suggest any remedy for this ? — The only remedy I can suggest is that
we pay the natives a wage which, whilst enabling him to save money, will hinder him
becoming exceptionally rich.

Why were not the wages reduced before ? — For years and years we were
labouring under a scarcity of native labour, which to a great extent is now abated.
At the present moment we have sufficient labour. Secondly, we have come to the
conclusion that it is absolutely impossible to pay these high wages. We have either
to reduce our expenses, or we have to shut down the greater number of our mines.

Keduction of Is it in the control of the mining industry to regulate the wages of katirs ? — To

2;^ Native^ great extent it is, provided that the Government assists us in bringing labour to

this market. The difficulties which the mining industry has to contend with in this

suppiyofNaUve respect are numerous. Native Commissioners up North want to receive a certain

Labour. amount of compensation for every native which they send down. I do not know

^dMDMded^^bJ whether the Government is cognisant of this, but it is always a question of 10s. or £1

mSSmiew**"^* V^^ head which the mining industry has to pay to someone to collect natives and

forward them here.

What amount is generally charged ? — It varies. It depends upon the demand-

If there is a great need of natives, the amount is a large one. Another difficulty is

Railway chargres occasioncd by the Railway Department exacting a large amount per head to bring the

of Natf^*^'* native to his destination. They ought to carry everything that is necessary for the

mining industry at as low a rate aj3 possible.

That is a question of opinion. — ^The native, as a rule, who wants to come down
to work, has no money, and the mining industry has to advance liis fare ; and, when
the native comes here, we have so little control over him that he can easily desert. It
has occurred to companies who have brought down 500 natives at a cost of £1,250,
that 300 have desertod after a week. The suggestion which one could make to the
Railway Department is that they should bring down natives at a nominal rate, and
charge him the full rate when he returns to his country ; and that the Government
should see that its servants in the native districts are sufficiently honest.

Is there no competition in the wages paid to the natives amongst the
companies, or have they agreed on a certain scale? — They agreed about eight
months ago to reduce the native pay, but we find that even that amount is far in excess
of the value of the work which they render to their respective companies. As I said
before, we cannot make both ends meet, and, sooner than pay thousands of pounds in
wages, and be unable to make a return to our shareholders, we will close down the
mines.

Mr. Q. Albu's Evidence. 15

Is there competition amongst the mines with regard to the wages ? — I don't think
so at the present moment.

Ton said nothing about white labour ; is it a fact there are thousands of white
miners out of employment at the present moment ? — I think there are a good many
workmen out of employment. •

Are you of the opinion that the wages paid to miners at the present moment are
Abnormal ? — ^In some instances they are abnormal.

Is there any chance of getting these abnormal wages reduced now that there are Reduction c
so many out of work ? Certainly there is ; I think the white labourers are prepared to *'***** ''^^^^
accept the lesser of two evila If we qlose down the mines a lot of white labourers
will be thrown out of employment.

What is the wage of the ordinary white man ? — From £18 to £22 per month.

If I can show from statistics that white labour costs £40 per head per month,
would I be right ? — That includes managers' and secretaries' salaries, and so forth.

We must get the average cost of white labour in that way? — There are men who wages of Minci
are paid £40 and £35 per month who do not deserve more than £25 and £30. I do not
propose to attack the miner who receives £18 ; he does not receive very much in excess
of what he ou£^ht.

Wliat is the average wage of white miners in Europe ? — ^I think about £4 per
month.

How can you account for the difference in wage of £14? — It is much more
expensive living in this country. A man pays for his board alone £5 and £6 per
month, and, if he be a married man, his rent is a very heavy item.

-Does not the company in most instances supply quarters ? — Tes, in some instances ;
bat where there is an excess of married men they could not supply accommodation.
Another thing why a man wishes to earn more than in his own country ; he comes 7,000
miles from home, and he has got to pay for that, and he thinks of paying a visit to his
home.

What 18 the reason of some miners receiving £18 and others receiving
abnormal wages? — Well, there are workmen and workmen, you must remember
as well as managers and managers. One man may be cheap at £200, and
another may be cheap at £1,500. It always depends on the mental work, as well as
the physical work. We can reduce white wages if the railway tariflfe are reduced, as
ihe necessities of life would be made cheaper in this place.

Is £1,500 the maximum wage paid to mine managers and consulting engineers ? — saUries of mii
There are bigger salaries paid. officials.

Can you give us the maximum figure ? — Well, I should say the highest salary
paid to managers is about £3,000. Only a few receive that amount, and they are
good men, or, at least, they are supposed to be.

And the engineers ? — Well, those men who receive £3,000 are supposed to be
engineers.

Do you know of any higher salaries paid than £3,000 ? — Higher salaries were
paid, but I don't know whether they are still paid. There may be such as to the
men in hi^h positions, such as the consulting engineers of financial corporations.

Are thede wages included as wages paid to white labour ? — No, they don't rank in
any statistica

Do they appear in the cost of white labour in the mining companies' expenses ? —
Oh! yw.

What do these financial corporations want with a consulting en^neer ? — They
require a consulting engineer to examine the mines, and, unfortunately m some cases,
<m their reports most of the financial corporations put their money into the mines.

16 Mr. Q. Albu's Evidence.

Do these financial corporations charge for the services of their engineers ? — No».
the engineer is for their own purposes.

Is not the ground sufficiently developed yet for local men to report on ? — ^There
are local men certainly, but these financial corporations are mostly floated in Europe^
and the directors choose men of whose ability they have knowledge, and they send
them to South Africa. I may say I have engaged a consulting engineer in this place
Ptm^ of ma- Who has charge of the purchase of machinery on the mine ? — The Board, under
^'^* the advice of the consulting engineer. In companies honestly managed, tenders are
asked for for the machinery which is necessary.

And in other companies again it is simply done on the recommendation of the
directors? — The directors will never undertake to order machinery unless they
have the advice of their engineer. The boards in most cases consist of laymen.

chargM of For- You havc been talking about the railways in other countries being only in exis-

eignBaUwa>8. ^^^^^ ^ fostcr the industries. Do you include England and Holland in these
countries ? — Yea

Can you quote any railway in England or Holland that does it ? — I have never
lived a sufficient time in England, and have never lived in Holland, but I know an
instance in Germany. Yes, I do know an instance in England that only
came to my knowledge yesterday. There is a railway in the south of Wales
of the length of 25 milea This railway has been built for the purpose of
bringing coal from a certain coal district to supply the docks. This railway, although
of a length of 25 miles, has, with its various tracks and link lines, a total mileage of
120 miles. The capital of this railway is eight and-a-half millions. They charge only
la 3d. per ton for 25 miles, and, if the wagon is not supplied by the coal mine, 6d. per
ton for the 25 milea The total cost is therefore *84d. per ton per mile, and it would be
less if it were reasonable to expect that those who pay the money into this railway
concern should receive less than a dividend of, for 1894, 3^, and for 1895, 3J per cent.
I have pointed out in my address to you that the German Government, in order that
their cOal mines should compete with foreign mines, have reduced the coal tarifi* to a
quarter of a penny per ton per mile.

Cape coionv and Speaking about the height of the tarifi* here and in Cape Colony and Natal^

N^^Roiiway gi^ppQging the tarifis here were lowered, what about the tariffs of Cape Colony
and Natal ? — I always took it that Natal co-operates, or is infiuenced to a great
extent by the tarifi* which is charged by the Netherlands Railway, and if the Nether-
lands railway were to reduce its tarifi^. Natal would follow suit, and Cape Colony
would be forced, in order to retain some trade, to also reduce the ratea The Nether-
lands Railway has got a good lever in the Delagoa Bay line.

Deiagoa Bay Do you think the mining industry would support the Delagoa Bay line supposing

"*"**■ the neighbouring Colonies would not support a reduced tarifi* ? — Yes, provided

Delagoa Bay would give it facilities for landing goods> and forwarding goods

the same as those given by Natal and the Cape (S)lony. But the arrangements

at the present moment in Delagoa Bay are frightfully bad. The administration

is very unreliable there, and we are therefore compelled to get our materials

through other ports, and we prefer paying a little more than having the uncertainty

which prevails through the administration of Delagoa Bay.

If there were good administration in Delagoa Bay you would prefer that

route with a reduced tariff ? — Being the shortest route, certainly.

NumberofMines Can vou givc the Commissioucrs the exact number of mines in existence ? —
o«^witwate«. jj^^ ^^^^ r cannot.

How many companies are there, can you say ? — That I really don't know by
heart. There are, I should say, about 170 on the Witwatersrand.

Mr. Q. Albu's Evidence. 17

Can you give us the number of mines which pay dividends and mines which ^^^®°1_,J°*
do not pay dividends ? — Approximately I can. I think there are about 25 companies pa^ MinM
that pay dividends, and the rest consist of mines that just cover their working
expenses ; mines that are working at a loss ; and mines which are in the course cS
development.

Are all those mines bona fide mining concerns ? — On the Witwatersrand, yea

And also on other reefs, such as the Black Reef ? — Yes. Of these 150 companies *^ oompan
which are not paying dividends there are about 25 floated in London during the
boom, and the reefs of which exist in the imagination of the floaters, or the promoters.

Do you know how many Main Beef companies there are — outcrop and deep- Main Beef Minei
levels ? — ^There are about 120 companies in all, I think, on the Main Reei.

Your opinion is that all the companies on the Main Reef are bona fide ? — Yes.

There are a number of companies which are not payable ? — Yes.

Generally known as wild cats ? — Yes.

You just now observed that the capital of the company in no way affected the
cost of working the company ? — ^Is it not a fact that too much money has gone into
the pockets of the vendors and promoters ? — That may have been the case years ago.

What does reconstruction imply ? — Reconstruction means that if a company iSter Beawns for re
having opened up work for some time has found out its machinery is obsolete, they ^°^™^ °°"
have to raise fresh capital in order to get machinery of later pattern.

Is that the Only reason ? — ^No, there are other reasons. Five or six years ago, as
stated in my address to you, being novices at gold mining, in floating the company
they provided it with too small working capital, and not being able to judge the
requirements of such a company in the shape of machinery, the consequence was they
wanted more capital to complete the installations.

Was it never a reason for reconstruction that there was too little working
eamtal ? — Yes, but there are other reasons. Granted that the working capital was
somcient to develop the mine to a certain depth and to put up machinery and installation,
the company may find on going down to that depth that the reef breaks off and forms to
the north or south, and so all calculations as to the number of tons required to be moved
in the developing work prove a failure. That is, in consequence of these breaks and
fonns in the reefs, they require more working in order to go down to greater depth
and to take up the reel.

Are there no other reasons ? — Of these reasons one or the other, although other
reasons may have been faulty management. Also to acquire additional ground.
It sometimes occurred that in days gone by, when the laws in this place were not
60 good for the mining community, the ground and titles were at fault through no
fault of the promoters, and the ground was jumped and had to be bought back.

The cost of labour will be greatly increased when the deep levels are at work ? — ^ Leveuf ^^^
Do you mean the opening of the deep levels ?

The cost of native labour and general expenses ? — The general expenditure, yes,
to some extent, certainly.

Could you give a percentage ? — No, but I may say that it will be counter-
txdanced by the using of the latest machinery. Engineers are at work to improve
upon the methods adopted of extracting gold with regard to the expenditure, as well
as to tJhe actual extraction, and they wul counterbalance to a great extent the greater
cost of deep level mining.

Will you explain to the Commission whether deep levels stand on their own Deep uveis.
ground, or whether they are only subsidiary to the outcrop companies. — ^They are not
eonnected, and work (juite independently.

They are floated m different companies ? — ^Yes.

18 Mr. Q. Albu's Evidence.

Did I understand you aright when you said that there were two levels to be
struck ? — No, I only said there was ona

Tou said that there were capitalists in Europe, and these found that in every
community there were people who were desirous of " squeezing the lemon " ? — Yes ;
I made that comparison about squeezing the lemon, and compared this industry to the
lemon, and the high rates and charges over the whole of South Africa — transit duties,
dynamite profits — to the squeezing. So long as the industry, which I compared t6
the lemon, has anything in it, it will be squeezed till it is perfectly dry and uselesa
Working of Liq- In the beginning the Liquor Law worked satisfactorily as regards the mines ? —

uor Law. j^^ somc districts yes, where the supervision was good. In the Krugersdorp district
it never worked well
uquor licenses. Do you think that in a community like this 60 licences is enough for the whole

of Johannesburg ? — The town is a very thirsty place.

Leaving alone that question, take a normal view of the matter. Don't you think
that 60 would be too few ? — I cannot give you an opinion on that.

What is your opinion about wholesale licences ; are they commercial licences or
liquor licences ? — They are commercial licences.

It is not the case that the Park Bar at the Meyer and Charlton has its
licenca The licence has been provisionally transferred by the Chairman. I wish
to state that for your information. — How I came to the conclusion was, that when I
went down yesterday to the mine I saw the bar opened in another name.

Mr. JovherL

Is it not a fact that the confidence of capitalists in Europe has been
shaken ? — Yea
Eflecteof redrew If the Qovemmeut give a reduction in the railway tariffs ; if the Government
o grievances. ^^^ ^ ^^ .^ utmost to get labour wagcs reduced, and make an arrangement about
dynamite, will that confidence be restored, in your opinion ? — Decidedly.

Will the capitalist again invest his money ? — Yes.

Without getting a clear statement as to whether their capital here is invested in
payable mines ? — Yes.

Will do it blindly ? — The capitalists in Europe have representatives here ; I,
myself, represent a financial group in Europe, and they have asked me whether it was
not the time now to invest n^oney ?

And the confidence in Europe will be restored without proper proof being pro-
duced that companies are floated on an honest basis ? — Well, the flotations which have
not been done on an honest basis are finished with. They cannot get that money
back.

Still it has shaken the confidence of capitalists ? — Well, it may have contributed
to the reasons.

Why has nothing been said about that ? — I am always speaking about it.

But there never has been any complaint to the Government ? — Certainly you
cannot expect a woman who sells fish to tell her customers it is stinking fish.

But the unexpected happens occasionally ? — Yes, somebody finds it out.

Don't you thiuK it would be desirable for the Commission to point out to the
investing public what has been done with the money in the past which has been
lost ? — They know themselves how it has been lost.

They aon*t know generally ? — By Jove ! I think they do.

Mr. Smit
Of which Companies are you a director or manager ? — I am managing director of

Mr. Q. Albu's Evidence. 19

the Meyer and Charlton, Roodepoort United Main Reef, George Goch Amalgamated,
•and Aurora West, besides director of the Coal Trust, Steyn Estate, Midas East Estate.
I don't think any more.

What dividends have these Companies paid, more or less ? — Only three of these ^jj^»^«°gj^j
Companies have paid dividends, namely, the Meyer and Charlton, Roodepoort United torr^^Mdepoor
Main Reef, and the Coal Trust. SSlrT* o2S^

Of what amount during the last year ? — The Meyer and Charlton paid 20 per 'S^^JJjJSi
<%nt. during 1896, Roodepoort United 35 per cent., I believe, and the Coal Trust 6 per ye»t» ooai

<Centb m lo90. tote, and Midas

Do you know anything about gold mining in other countries ? — No. *^' ^*'^**'

Do you know anything about taxation levied by the Civil Government on gold
mines in other countries ? — No.

So you cannot say whether the taxation comes heavy or light ? — No.

Are any taxes imposed by the Government direct which form the subject of Taxation,
objection or grievances here ? — With the exception of a few where special taxation
takes place, I don't think we can complain very much.

I do not allude to import duty, but to personal taxes and taxes levied by the Penonai Taxes.
State. — I don't think we have anything to complain of.

In respect to claim licences or prospecting licences. Are these considered ciaim and pros-
excessive ?— No, I don't think so. S^^"« ^*^°"

Don't you think prospecting licences might be reduced ? — Well (after considera-
tion), the present charge for prospecting licences is 6s., isn't it ? No, I don't think
they need be reduced.

You think that charge is reasonable ? — I think it is sufficient, but I don't think
it is too much, especially m bad times such as we have at present.

You stated this morning that the charge for railage of coal is too heavy, and that
if the Railway Company were to carry coal at a cost just enough to cover expenditure
they would reap benefit from other sources. What sources do you refer to ? — First of
all, the very fact of not only the coal tariff but others being reduced would make Advantages to
mining in itself cheaper. This would prevent, in the first instance, mines which are JSiuSiioiiB^
still at work having to close down, and mines which are not working at the present
moment on account of the heavy burdens, will be able to start work. These mines,
which will re-start working, will require new machinery, and this would swell the
revenue, of course, of the railway. In fact, if we get these reforms which we are
asking, it would impart a new impetus to the mining industry. Fresh capital
would be brought into the country again, and it is a well-known fact that workmen
and men of science follow in the train of capital.

That would affect more the outside railways than the railways within the
State, because they have a bigger mileage outside than inside the State ? — So long as
this railway makes a good profit, you cannot be jealous of the profit which the other
railways make from legitimate traffic

You see it would help to reduce the freight from here to Vereeniging to a ^vlreSiigin^^S
minimum, wherecw the greater portion is paid from Vereeniging to East London. — Johannesburg.
Yes, but they would also reduce. You see, although the Ime of the Netherlands Tng to**&!ft
Railway is but a short distance, I may point out that the dividend paid for ^"^®"-
1895 came to 36J per cent, on the capital of the Netherlands Railways. That was ^R^iJ^Jl^^i*
in 1895, and if I take the figures of receipts as a guide for the profits which the dendV^
Netherlands will make for 1896, the dividend of the Netherlands Railway will
amount to 100 per cent; of course, including the share of the profit which the
Government gets.

20 Mr. Q« Albu's Evidence.

The report of the Netherlands Company, which I have got before me, for 1895,
shows a dividend of 8*4. — ^Yes, I have got down approximately 9 per cent.

In the 8*4 is included the amount paid to the Government. — ^No. After you
paid the amount to the Government, 8*4 is left to the shareholders. You paid
Peroe^jfe of to the Government in 1895 £322,327 13a 4d. This item alone oomes to
Capital of N^ 27^ per cent, on the capital of the Netherlands Railway. The capital of the
the^riaodsBau. jSTethcrlands is £1,166,666 13s. 4d. The shareholders received a dividend then
NetPiroiitofNe- of 9 per ceut., or 8*4. The clear profit for 1896 on the Netherlands Railway will be
theriandsRau- ^^ |^^^ ^ million. Now, I wiU poiut out to you the Netherlands Company has in-
vested a share capital (apart from debenture issue, of course) of £1,166,666— a little
capital of igj*- over a million. They have earned a million net profit last year. That is what it
^^ ' will come to. The mining industry has invested anything between 75 and 125

millions. This varies according to the value of the shares. And they have paid out
^^*w5hJ^7 ^f '*^^ y^*^ * little over a million and a half. So this illustration will go a long way
Mines and of to provc to vou that wc uot ouly pay too much to the railway companies, but that the
RjSfway. *" request of the industry that the Netherlands Company should reduce its rates is but
reasonable and justified. I still maintain that it is the duty of a railway company to
bring the materials which are necessary for opening up and working an industry at
as low a price as possible. And in some countries they even go so far as to bring this,
material at a loss to the seat of the industry. In the long run they make a profit.
Dividendtof Are thesc Companies belonging to the State or pnvate Companies ? — On the

wiys.*^ State railways on the Continent there is an enormous traffic, but it does not
return the Government more than 3 to 3^ per cent. On the private railways
in England I think the shareholders are highly pleased if they make 4J per
cent. Now, go to the railways in America. Still, there is not a single one that has.
paid a dividend yet.

Those Companies which carry necessities for the mines at a loss> are they
companies belonging to the State or private Companies? — On the Continent they
belong to the State.

So the State is there to help the industry ? — Certainly.
Prime Railway Are there any private Companies which carry goods at a loss in order to foster
uipaa es. ^j^^ industry ? — Well, I suppose tnere must be, because in England, where the railways
belong to private Compames, if the earning power is only 3 to 4 per cent, I think
they must to some extent carry goods at a losa ,

A private Company which owns a railway is on an equal footing with a private
Company which runs a mine ? — Yea

And why should then a railway company carry goods of an opposition
company at a loss? — In the first instance we do not ask the Netherlands
Company to reduce its rates. We ask the Government to do that, one way
or the other, for the simple reason that if nothing is done in that respect the
Netherlands Company will be a much heavier loser, and the State with it.

What would be the object of a company in England carrying goods for other
industries — for private companies — at a loss ? — If the industry prospers under certain
conditions, these conditions must be considered by the railway, and they get a profit
out of other traffic created in consequence of the industry.

In short, they lose in one way and gain in another ? — Quite so. I don't say the

Netherlands Company need carry anything at a loss, the margin is so enormously

great.

Roduoed^^^coai Can you quote any industry which is supported by the railway at Home by

iKeSm Rail- carrying goods at loss in order to foster the industry ? — ^The railway in Silesia carries

""^^ coal at a loss.

Mr. Q. Albu's Evidence. 21

Where do they carry it to ? — They carry it right through the country. It is the
nearest coal mine to the northern part of Germany, and the railway carries the coal .
for a quarter of a penny per ton per mile. If the Government had not done that,
these coal mines would have been compelled to close down, and the population would
very likely leave the country.

What benefit does the railway derive in other directions ? — Well, the population AdvantaKw of
is increased in that part of the country, not alone by the various marriages which ^iw»yl *" ^
take place there, and they require food stufis. Tou know that sort of thing is like
a chain, one link fitting into another.

Do you mean to say people get married because there is a cheap coal tariff ? —
That is it

Can you explain why it is that dynamite formerly, before the concession existed) ^^JJ^JJ^ ^^^'
was not cheaper than it was? — First of all we had no railway communication Former prioee of
with the Transvaal, and it was sent by ox- wagon ; secondly, the consumption was very i^y'**""^*®'
small, and we were not sufficiently large consumers to dictate to the powerful trust
company. To-day we are large consumers ; we have railway communication, and
all facility for bringing the djmamite to the mines. I think therefore we ought
to get dynamite at a price which would allow the dynamite factory a reasonable
profit. If this monopoly were not in existence we could get other people to supply
us at a price very much less than Nobels are supplying it to-day.

There was a time when the dynamite factory could not supply the wants of the Permits to im-
mining industry, and the Government gave permits to importers. What was the price ^^ y^^*^^
of dynamite then, was it high or low ? — I don't think it was much less than what it is
to-day. These permits, strange to say, found their way into the pockets of merchants,
so that if a company required 50 cases per month and could not import the stuff
themselves they had to go to the merchants, who formed a little ring themselves.

If the permits got into the merchants' hands the representatives of the mining
industry haa only themselves to blame. — I believe others were in the same position as
I waa I was quite new here and did not know the circumstances. My time was
sufficiently taken up in looking after the mines I became connected with, so I had not
time to look after the dynamite Question. The De Beers Company, for instance, pay Price of Dyna-
578. 6d. or 60a for dynamite, ana 12a 6d. of that goes to the Cape Government, and Seeri. ** ^
we pay 80a in the Transvaal The De Beers Company consume about 80,000 cases in
the year. I am buying dynamite myself for a company I am connected with in the
Kimberley district for 55a

Now ? — Yes. If De Beers required a larger consumption they could get it very
mach cheaper.

Now, formerly, I understand, that the sellers tried to get as much as possible ou t AdvantafM of
of the sale of dynamite, and now the Government contract has been made at a certain SSSf ^^° ^
figure, they are all prepared to undersell — Of course, competition is good for trade,
And if we close competition there is no business. Suppose, for instance, I came 20
years ago to the Transvaal Government and got a concession from them to work
the gold in the Transvaal, and said I would give them £100,000, I think the
Government would have done it I would then have started to work the gold mines,
bat do you think the place would have been so far ahead now. The Government
would have had £100,000, and that is all The Government's income is now about
£5,000,000 a year, simply through competition from the Transvaal Government having
thrown open the fields to all, and invited everyone to come and prospect by merely
paying their licencea I see Pretoria flourishing, and a place like Johannesburg which
has sprang up within ten years, railways and bridges being built, and I can assure

22 Mr. Q. Albu's Evidence.

you, sir, that if you only help the industry, this will be one of the most flourishing^
States in the world.

You said this morning that if the dynamite were cheaper there would be more
carriage of it and a greater consumption ? — Yes.
^*S^**^ As far as you know, are there any mines that cannot be worked because of the
price of dynamite ? — There are mines which I know which will have to be shut down
if the Grovemment will not grant these reforms, and we do not do something in the
matter of labour.

What can the Government do to prevent these mines shutting down ? — The
cheapening of djmamite, the reduction oi the railway tariff so that we can get coal
cheaper to the mine, and machinery and timber. These are the two important
questions.

Do you think that will be sufficient assistance to work the mines which would
otherwise be forced to lie idle ? — Yes, if we do our portions as well. We have ta
reduce native labour, and see that the managers exercise that tact and knowledge of
the work in order to bring about the reduction of cost in the working. Only then
will we be able to work in such a way as to return a profit on the money invested in
the mines.
B^^tton oi Do you intend to cheapen kaffir labour ? How do you propose to effect that ? —
lAboar. °* ^ By simply telling the boys that their wages are reduced. The maximum at present is
2s. 3d. a shift, and we can reduce that to Is. 6d., that is for skilled labour. For
ordinary labour Is. or less for the shift.

Suppose the kaffirs retire back to their kraals ? Now, in case that happened, and
that you were without black labour, would you be in favour of asking the Govern-
Ftjr^ natiTe mcnt to enf orcc labour ? — Certainly. A kaffir cannot live on nothing.

You would make it compulsory ? — Yes, I would make it compulsory, and without
using force a tax could be levied. If a white man loiters about without doing any-
thing he is run in. Why should a nigger be allowed to do nothing. If there is a
famine in a district the Grovemment has to pay for it, and that falls back again on the
industry. Therefore, I think a kaffir should be compelled to work in order to earn
his living.

Do you think that you would get the majority of the people on the Rand with
you in trying to make the kaffirs work at a certain pay ?— I think so.

Would it not be called slavery ? — Not so long as the men earned a certain amount
of money.

If a man can live without work, how can you force him to work ? — Tax him
then. If I have £5 per month to spend, I don't want to do any work ; but if the
Government passes a law that all gentlemen at large whom you may know in
South Africa, who often call themselves that, must pay £3 per month tax, there
only remains £2, and I am forced to work.

Then you would not allow the kaffir to hold land in the country, but he must
work for the white man to enrich him ? — He must do his part of the work of helping
his neighboura How would the Government like us to sit down and say that we
have enough money ; where would the State drift to ? There is always competition
in labour, and when a man once tastes the fruits of his labour he will work.
OapitAiiMiion of You Said that the capital does not affect the working of the mines ? — That is so.
Mines. j^ J pointed out this morning, in my own case, I had a mine with £10,000 working

capital, and that represented the whole of the capital of the company.

Suppose the mine had paid something, it would be far easier to return on
£10,000 than £100,000 ? — ^Then the value of the shares would always be in proportion
to the profits. It does not matter whether I get £5 for £1 shares, the proportion is

Mr. O. Albu's Evidence. 23

the same, and it makes no difference if the mine has been over-capitalised. Don't you Native locations.
think that with regard to native labour, if natives were allowed locations around
Johannesburg it would be a good way of getting Kafirs here ?

The kraal kafirs won't do this. Only Colonial boys will do it perhaps. If the
mines came together to reduce wages to a certain figure, will it not harm the mines
to a great extent ? — ^It will do harm to a certain extent, but we will have to get over
this in some way or other. If, for instance, we want natives from Delagoa Bay, we costofprocuring
have to pay 27s. 6d. to get a boy there. Who receives this money, I don't know, °*^'^® ******"•
bat somebody gets it. Then we have to pay 20s. 6d. for railway expenses, and
uiother lOs. a head for collecting the boys and feeding them. Thus bringing a boy
from Komati Poort to here costs about 62s. 6d.

Can you give any instance where a Native Commissioner has charged for kafirs Exactions by
sent to the mines ? — No, but I am more or less certain that this is done. We pay ^lonen for
the agents, and the agents again pay the officials. Jj^^^^ ®' "*'

Has it ever been attempted to import poor whites from Europe to labour
here, and to pay the expenses ? — No, we have at present too many labourers here on
aecount of the many mines that have stopped work.

As you said this morning, you have to pay high wages here because the living is comparison of
80 expensive, but can you then expect the railways which carry coal here to do it at Sd^^iuaiwi^
the same rates as in other countries ? — No, it must be done at a higher rate here, but '****•
good wages have to be paid at Home as well, for if not, we will have more clever
managers here.

I know of cases where our Government pays engineers £100 per month, whereas
they only received £300 per year in Europe. — This is the case with the majority of
us.

Mr. Brakhan.

You told us this morning the loss to the mining industry by gold thefts is very gow thefts.
ccmsiderable. Can you inform us what amount per annum would they come to ? —
Well I think u^e can reckon, on what has been divulged lately, 10 per cent.

What amount would that be ? — About 20,000 ozs. per month. Amount of gow

That would be about three-quarters of a million per year ? — Yes. ^^^^'

You consider that an absolute loss which otherwise would be paid in dividends to
the shareholders ? — Yes.

Can you suggest any ways and means by which gold thefts can be prevented Prevention of
altogether or minimised ? — The only way I think would be by an efficient detective ^"^^^ ^^^^^
^partment. I don't think any law will ever prevent or minimise the crime. I think
11 a law were introduced which would deal very severely with the miscreants, and an
honest detective department established in which we can have trust and repose
confidence, then I think we can minimise the gold thefts.

Do I understand that you suggest a separate detective department should be
established simply to deal with gold thefts ? — Yes, I would suggest that a separate
detective department should be established, which would comprise advisory members
appointed by the mining industry.

With regard to native labour, do you consider that in the cold weather there supply of native
would be a sufficiently continuous supply unless locations were formed on the Rand ? ^*'^"*''
— ^My experience is that it was never owing to winter that we had less natives than
in the summer. There are always other reasons why the natives went home-^
ploughing, sowing, or getting mairied.

Do you consider that if there are locations on the Rand you would have an Native locations
increased supply of skilled labour ? — Yes, I think they would stay here.

24 Mr. a. Albu's Evidence.

I have very often heard that the labour which oomes to the Band is to a great
extent very inefficient and very incapable, and the natives have to be taught. — I think
if the natives had their locations hero, and had their wives and families, they would
make this place their home.

I suppose in considering this question of locations you are in favour of com-
pensation being given to the burghers of the State who give ground for the purpose
of the locations ? — No ; I think it a question for the Government to decide.

^^MrfnMw'iSS ^^^ ^so alluded this morning to the excessive salaries paid to experts on the
offldais. Rand ; do you consider — I am speaking only of those who are really capable — that
their salaries are very excessive in comparison with the salaries paid in Europe ? —
That is a very difficult question to answer ; brain power is a very expensive com-
modity, and a rare commodity too. A clever engineer may be satisfied with £2,000 a
year, while another is not satisfied with £4,000.

Well then, I should think that these men who are well paid here could also
command very good salaries in Europe and other parts of the world ? — Yes.

And they could live under more favourable conditions than they are doing here ?
— Quite so.

You have mentioned that the industry is not heavily burdened by direct tax-
ation, such as claim licences ? — That is my opinion.
TtoattonofMyn. We know, uudcr the Gold Law, there is a provision where mynpachts may be
taxed to the extent of 2J per cent, on the gold produced ; now, do you consider if the
Government compelled the owners of mynpachts to pay this 2J per cent., the owners
of mines are at a disadvantage compared with those companies that merely hold
claims ?

— Well, I know some mynpachts that would not pay 6d. to the Government if the 2J
per cent, were levied.

I mean in the majority of cases ? — You put a very awkward question, which I
prefer not to answer.
'^c&fmUoe*"* Then, with regard to diggers' licences and claim licences, lately diggers' licences
have been asked for prospecting claims which are not worked. What is your opinion
with regard to that ? — My opinion is that the Government should not impose diggers'
licences on prospectors' claims.
Pr^toon Dyn*. With regard to djniamite, you have told us that the cost to Nobel and other

manufacturers is about 18s. ? — Yes, about £1 ; and the blasting gelatine for which we
pay £6 7s. 6d., costs about 25s. or 30s. per case. If the Government want exact
figures on this matter, they can simply apply to the agent of the Transvaal at home
to collect them.

In other words, Nobel is satisfied with a profit of 5s. per case in Europe ? — I don't
think he is satisfied at all. Nobel takes what he can get.

According to your figures he gets a profit of 48s. per case on the dynamite ? — I
don't know what profit Nobel gets, but if these figures are correct he must make an
enormous profit ; and, by reason of having this monopoly in South Africa, he simply
controls the whole market at home, because he gets such a tremendous profit here.

Do you consider a market like the Transvaal, which consumes about 180,000
cases of dynamite annually, would be sufficient to break a monopoly ? — I think so.
The position in the Transvaal is strong enough to break the monopoly of Nobel, and
the industry is strong enough to break any monopoly in the world.

' ^™*tf>vMmite Then you also mentioned about permits issued some time ago when the factory in

^^ this country was not in a position to deliver sufficient dynamite. How do you explain

that greater advantage did not accrue to the mining industry. Was it from excess of

Mr. Q. Albu's Evidence. 25

duty or any other charge ? — I really do not know the circumstances. I was new
here. I do not know what duty was charged, but somebody made money out of it

Mr. Brochon.

You told us that about 25 mines are paying dividends, and you also told us ^^SjSdpSjMT!^
that if certain reforms took place some more mines which do not pay could work dends.
4it a profit. Can you give us any exact figures about them ? Can you tell us
how many mines would be able to pay dividends under other circumstances ? — I think
^t least 50 minea That does not include mines which are at present developing. They
will also pay dividends when they are ready.

You think about 50 mines more will be able to pay dividends on the introduction
of new reforms ? — Almost immediately.

We have about 150 mines here, so that would give 75 mines paying dividends ? —
There are about 25 mines north of the reef which are failurea

So there would be very few which would not be able to pay ? — I maintain that
nearly all the mines on the Main Reef, if we get these reforms which we are now
praying for, should, if the Directors see that they are worked honestly, make profits.

Can you suggest any measures to the Government to deal with the native labour ^^J^SSltBonoi
problem ? — I would suggest that the administration of the Pass Law should be applied p»m Law.
not by the Government alone, but also by the members of the mining industry, who
should form a body. I think it is quite impossible for the Government to know what
is necessary ; what is required for us, and I would also suggest, as the mining industry ^^"SJi^^^iSS
has no representation in the Volksraad, that the Grovemment should have represen- of commeroe.
tatives of the industry to consult with them on questions which appertain to the
Mining Industry ; that they should also choose members from the Mercantile Associa-
tion for a similar purpose — to consider questions which affect commercial interests.
This sort of thing is aone in Eui*ope, besides the fact that you have got in the Houses
of Parliament in Europe men who represent the various industries. I think if the
Government were to act upon these suggestions, a much better understanding would
prevail between the so-called uitlander classes and the Government.

You mean consulting members ? — Yes.

Mr. Hugo.

Kafir labour is a very heavy item in the expenditure ? — Yes.

Are you able to give us the percentage of the expenditure on that item alone ? — Oott of luMn

Ti. ui i. ^ i. or i. Ubour.

It comes roughly to about 25 per cent.

Including food ? — Yes. Of course, with some mines, I must explain, it entirely
depends upon the nature of the reef ; if the reef worked is a wide one it requires less
labour to break it ; if the reef is a narrow one you require more labour to feed the
mill with a certain amount of ore. In some mines it may be 25 per cent., and in some
it may be more.

That being so is it possible to replace kaffir labour by white miners ? — That is
not jx>ssible. I don't think a white man can do considerably more work than a skilled
kaffir.

For underground work it has been suggested that white labour should be em-
ployed ? — ^They would find it a failure, and too expensive.

Yesterday you suggested that, in order to obtain kaffirs, locations should be compound sye-
established, but that does not seem quite feasible ; what do you think of the com- "**
pound system that prevails in Kimberley ? — I would not recommend the compound
•system.

Why ? — Because I think it would hurt the commercial industry.

26 Mr. a. Albu's Evidence.

In Kimberley a contract is entered into to keep the kaffirs for six months in the-
compound ? — Yes. I think it would have a bad effect upon the commercial industry^
which, after all, is a great factor in the progress of the country.

For that reason you would not recommend the introduction of the compound
system ? — Yes. The main reason why, in Kimberley, the compound system was intro-
duced was in order to evade the theft of diamonds. I can speak with experience on
the subject because I have lived for twelve years in Kimberley, and was engaged,
in mining there.
^*inSc**' ^°* Coming to dynamite, there was a report in the newspapers this morning that on

a certain occasion the Chamber of Mines were on the point of entering into a contract
to supply dynamite at 45s. Just about the time the monopoly was entered into ? —
I have some slight knowledge of what occurred at the time. When this contract was
submitted to my Companies I opposed it.

Was the price then proposed 45a ? — ^I think it was 45s. plus duty. I don't speak
with any absolute knowledge on the subject.

At any rate you are convinced at the present moment that dynamite can be
supplied at 40s ? — Yes. Dynamite for which we are paying 80s. costs about 18a 6d.
in Europe. I have here the annual report of the Alavska Mexican Gold Mining
Company in America, and under the items of disbursements, djmamite costs 28a Id.
per case of 50 lbs. That is the price under an old contract ; they are now paying
25a per case, and that is in the centre of North America.

What do you think would be a fair cost for dynamite delivered here, roughly
speaking ? — It is difficult for me to say ; naturally, these people want a profit and a.
fair profit.

Mr. Hay, in his evidence, stated that dynamite could be delivered here at less
than 40a ? — I believe he is correct.

There is no fear of a ring being formed ? — No. The mining industn^ is quite

rich enough to erect its own factory somewhere in Europe ; the various Companies

would be willing to contribute the necessary amount for this purpose.

BemMiM for You also referred in your evidence to the gold thefts. Would you recommend

^ * ' the Commission to submit a special law dealing with this, the same as the I.D.B. Act

in Kimberley ? — Certainly.

You estimate the loss to the companies at a very enormous sum — 10 per cent. I
think ? — A large number must be thriving on the ill-gotten gains of I.G.B. The proof
of that we have in the quantity of the people who are doing absolutely nothing, and
they live in a very good manner. I have been in South Africa 21 years, and I pretty
well know them all.

You referred to the establishment of a detective department. Can you make any
recommendation as to how it is to be constituted ? — I would suggest that the Govern-
ment should request the members of the mining industry to co-operate and make some
proposal to the Government as to the best method of choosing a detective department
Price of Coal What do you think a reduction in the coal tariff would ctfcct a Saving, of ? Have

freight. y^^ g^^^y J j^ ^£ ^j^g ^^j^j ^Qg|. Qf transport ? — I would rather give you the expense

from Brakpan to the George Goch ; the Netherlands Railway charges for running
trucks into the siding at the Transvaal Coal Trust 2 Jd. per ton.

You put it down at 3d. all told ? — Yea

Can you give, more or less, the aggregate sum paid for the transport of coal by
the mining industry per month or per annum ? — From £350,000 to £360,000 per
annum.

In your opinion, how much can be saved in that? — I think about 2a 3d. can be
saved.

Mr. Q. Albu's Evidence. 27

You estimate about £200,000 can be saved by transport alone to the mining R^ac^on pjj:
mdustry ? — Yes. This saving could be effected if the Netherlands Railway put in M^hL
sidings for the various companies and delivered the coal in bulk. That alone would
save about 2a 6d. per ton, because the bag item is a very heavy one.

Mr. Joubert

To a question of Mr. Smit's yesterday you replied that a railway company and a comBariMii of
gold mining company are on one footing. Was that what you said ? — I don't know Say ^plm*
m what connection. I said the industry, perhaps, and the railway were on Ihe same ^«»-
footing. If the gold mines do not pay any more, and they have to close down, then
the railway companies will not pay.

What I mean is, that you replied to Mr. Smit that if a gold company was an
industrial company so was a railway company. — A railway in this country is so far an
industrial concern.

You don't say there is any competition between the two ? — No. There should be
competition between the railway lines, but there ought to be none between a gold
company and a railway.

You make no difference between monopoly and competition ? — I make a great
difference.

Then the two classes of companies cannot be treated as standing on the same
platform ? — Of course not ; but a monopoly in a railway department means that there
IS only one railway allowed. I dare not build a line to compete with the present line.
Therefore the railway company can have it all their own way.

And, therefore, accordmg to my opinion, you cannot deal with a gold mining
company as standing on the same platform as a railway company ? — No, oF course not.

Then you cannot have understood Mr. Smit's question, because he plainly asked —
If a railway company is a company and a gold mining company also a company, both
have to do their utmost to earn profits ? — Yes, therefore I answered that the railways
in any other country are run to promote the interests of the staple industry of the
land.

But you can never put a railway company on the same platform as a gold mining
company ? — As long as you establish the lact that a railway in this country, being a
company must try to earn as much as possible, then they are on the same footing.

But still they have got a monopoly, there is no competition! — All the worse Netherunds

kiJT lu. ^ ^ mooopoly.

That is why I do not want to admit they are on the same footing. — If Mr. Joubert
admits it is unjust that it should be a private company and make as much profit out
of the concern as possible, then he is right.

I won't admit it is unjust, but I want to say you cannot put the two on the same
level, to be considered from the same standpoint. — I can gauge the feeling of Mr. Jou-
bert, when he does wish to say it is unjust. The object of the Commission is not only
to look after the interests of the country, but also to look after the credit of the coun-
try outside, and as a commercial man I cannot admit that a railway company is on the
same level as a gold mining company, because in the gold mining there is competition
and in a railway there is not. The credit of the country can and will only suffer when
the staple industry of the country is proved to be unpayable, and this can only be
altered, and they could only enhance the value of their properties when they were able
to work at a profit. As long as such abnormal conditions prevail — all these enormously
hi^h rates and cost of dynamite and other mining items — our properties will not be
aUe to pay a return to the shareholders, the consequences of wnich must be that the
credit of the State suffers.

28 Mr. Q. AIbu'8 Evidence.

But what possibility do you see for the Government to bring about a reduction

after your declaration that the railway company stands on the same level as a gold

Baiiway a pri- mining compauy ? — I don't say that. When you acknowledge the railway company

vatecsompony. j^^jgj. ^xist as a private company, then I say, of course the raflway people have a right

to charge as much as possible. But it is unjust that the Qovemment should support a

monopoly of that kind, and if the Qovemment acknowledges that, and say we cannot

allow this company to exist any longer as a private company, and we must, therefore,

Expropriation of expropriate or Duy the railway — so long as you acknowledge that, I say the Qovem-

iway. ment will say, " All right. Now, after expropriating the railway we reduce the

charges to such and such an extent." But as long as the Government says this is a

private company, then I don't blame the directors of the private company for charging

as much as possible.

But it IS always a privileged company. — Which is ?
The Netherlands. — Yes ; that is their good fortune.
Because there is no competition ? — And because it is a private company.

That is what makes it so difficult to understand your declaration that the two
stand on the same level. — As long as the Government will recognise this company as
a private company, then I say they are quite right in charging as much as possible.
The only way I can see out of that is that the Government expropriates the railway.

You acknowledge that a gold company is a private company, and a railway also a

private company, and that every company will do its best to make as much profit as

possible. N ow, the question is, have both got the same chance of doing it ? — Well, you

know it is rather difficult to answer this Question, for the simple reason that such a

No Competition thing as Competition does not exist in gold mining. The more gold that is put out the

nooi ininiff. |j^^^j, j^ jg^ ^^^ jf y^^ substitutc diamond for gold mining, competition in tne diamond

industry is disastrous. The more diamonds that are found the less value are they. If
RaUwaycompef we were allowed to build one or two more railway lines in this country to compete
ition prohibi- ^j^j^ ^j^^ Netherlands line, then, although they might be private concerns, we would
have better conditions prevailing.

You say, then, in gold mining there is no competition ? — Yes.

But still there ought to be ? — Well, the more gold mines the better for the
country.

The more competition there is the better ? — Well, I don't know. If I had the
choice of being the owner of one gold mine or 10, I think I would be the owner of
the 10.

What is the reason there is no competition in gold mining ? It is only putting in

No monoDoiy In moucy in Order to take out gold. Why cannot there be competition ? — It lies in the

Gold Mfning. yery f act that such a thing cannot exist. When an article which increases in value

the more it is discovered or found, you cannot call it competition. If you increase

the article which you are manufacturing and thereby reduce its value, that means

competition.

My idea was that everyone was at liberty to do with his money as he likes ? —
The word competition denotes that one man competes with the manufacture of an
article to do better and cheaper. But gold has a standard value. This has been
proved, as you will see, in the price of silver, which has fallen for the reason that more
silver has been produced than necessary, but gold has a standard value.

Suppose a company is floated which developes a pi^operty well and has a good
output. Nothing prevents another company starting work with a good capital ? — No.
I wish I could find a few mines more.

Then that is competition ? — No, it does not reduce the value of the article I
produce.

Mr. Q. Albu's Evidence. 29

It means that toe has not got the monopoly to dig for gold ? — Such a monopoly
does not exist.

Gold has got its value to day, but a sovereign is nearly worth £100 as compared
with last year ? — Yes, but I don't admit it. You must say that money is dearer to-day
thm a year ago.

So gold does not get the same value ? — ^Times would be like last year if we had the
eoneessions to work the mines better.

Exactly so. The competition makes it go up and down and get cheaper and
dearer, according to competition. — So many things cause money . to be dear or cheap.
Political questions and commercial questions affect the money market. The question
belongs rather to national or political economy.

You said yesterday that if a law could be made for enforced labour it would be a Forced labour.
great assistance. Is that your opinion ? — Yes.

Is there a law in England to get forced labour? — No ; nowhere in the world as far
•8 I know.

Then why would you like it here ? — I have not asked for it. But I told you
▼hat the consequence would be if we reduced the price of labour and the natives
refosed to work here. Then I suggested to impose a head tax, and I think Mr. Smit Taxation of n»-
asked me if it would be a good thing to have forced labour. I, as an employer of * ^**
labour, say it would be a good thing to have forced labour, but another question is
iriiether you could get it. You could exercise a certain amount of force amongst the
natives if you impose a certain tax upon each native who does not work, or if he has
not shown he has worked a certain length of time.

Mr. Smit pointed out to you that you cannot tax a kaffir higher than a white
sum. — No, you only tax him to make him work.

How can you make a law for two ? The law of the Republic will be the same
for everyone. Do you think the people would consent to such a law ? — I do not know.
I am not a legislator. The law is not the same for the kaffir as for the white man.

How can you say so ? — ^The native, for instance, has to wear a badge, and he must
not be out after nine o'clock. If vou say the same law exists for the native as for the
white man a kafir ought to appeal against this.

From the beginning ot the country the principle was laid down that the white
Bian was a burgher and me kafir was not. The same law does not apply to the
white man. — "nie law then should be for the native, that if he does not work for a
certain number of years, or if he is too rich to work, he must pay.

Yon know of no other country where there is such a law ? — There are no kaffirs in
any country I have been in, but the rich man who does not work has to pay a higher
tax than the poor man who has to work. In fact, the man who earns a certain amount
of money pays no tax at all, and the proportion of taxes goes up in proportion to a
man's wealth. If a native does not work he ought to be taxed.

If he has no money and does not work ? — I do not know how such a man can live.

But although there are in London no kafiirs, there are poor whites ? — Oh, ves.

Are these compelled to work ? — You do not need to tell a man to work there, he
will work if he can only get it.

Is it the same here ? — No. A kaffir can get work if he will come.

But still they live ?— Who ?

The poor at Home — Oh ! yes, they live.

Do you know that two-thirds of the natives in the mines are not subjects of this Nationauty or
Slate ? Yea ™*"^ ^^'^

How can we go and tax natives who are not our subjects ? — No, of course not.
Hie native who comes here would not get taxed ; he works.

30 Mr. Q. Albu's Evidence.

So. Consequently the kaffir coming in from outside would have the privilege over
the one here ? — I do not know what the other countries would do. In the Colony there
is a law which compels natives to work. It is the Glen Grey Act

CJuiirman.

1 want to be clear with regard to the grievances, and what you expect the
Reduction of Government to assist the mining industry in. To start with the railway. I
RoUway rates, ^u^j^pg^^nd that if wc lowcr the tariff as far as material for the mines is concerned,
and machinery, that this would be of great assistance to the industry ? — Yes.

Then this question does not include a general lowering of tariff for general
merchandise ? — Yes, we ask for a lowering of the tariff all round.

Then we come again to the question discussed casually between you and Mr.
Joubert, that, through the reduction of certain articles, I do not believe that any greater
impression would be made on the revenue of the railway. I can well understand that,
on the promoting of the interests of the industry, the prosperity of the commerce and
the whole Republic depends. Consequently, when we go into these questions, we must
remember that, although the Railway Company is a private company, still the Govern-
ment have a great interest in it, and exercise supervision over it. It is well known
that the Government is a big shareholder in the company. Still, when the tariffs are
lowered, no matter whether it belongs to a company or to the Government, they could
Railway proflte, not be SO far lowercd as to preclude the Railway Company paying expenses. — But
the margin between the profits and the cost of working the railway is so enormous
that the railway tariff might be reduced considerably — very considerably — and yet
the Railway Company womd make a large profit. I can give the Chairman a few
figures for 1896.

The Chairman said he preferred to have the figures with the other statistics which
had been asked for, and said : You have pointed out the transport of other
countries. I don't take that as an argument in favour of a reduction here, because we
must keep in view the expenses of living here, and the expenses of articles to be landed
here, which are so much cheaper in other countriea The same rule applies to the rail-
way, so far as it concerns the importation of railway material, and the salaries and
wages of its employees. — May I say one thing about that ? In spite of all the Chairman
has said, and in spite of the enormous cost of bringing material here, living here, &c., the
Railway Company made a profit last year of £1,298,000. From this you can gauge the
heavy burden borne by this industry. The Railway Company, moreover, made this
profit after allowing 6 per cent, interest on the share capital, and on the debenture
stock. This will give you an idea, Mr. Chairman, that this industry is not only over-
charged ; it is not only unfairly treated ; it is simply strangled. I don't exaggerate, and
I assure you that such a state of things does not exist in any other part of the world,
of a company with a capital of £1,166,666 making a profit of £1,298,000 after making
allowance for interest and debenture stock. I am glad you have pointed out how very
expensive it is to run a railway, as you will now gain an idea of how expensive it is to
run a gold mine.
Neceesity for re- Of coursc, wc must probc this qucstiou to its very depth. — I can only answer

^a^of griev- ^j^^ Chairman this. I speak feelingly, and I know that the end of my examination
is nearing ; but the State will have such ample proof that, unless they meet
us in such a way that we can work the industry at reasonable prices, as
will never be required again, inasmuch as most of the mines — and I don't say
this bv way of holding out a threat — as I speak as a man who has got a large interest
at state in this country, and it may hurt me to admit the fact I am about to reveal to
you — that our interests will not be worth the paper they are written on, unless the

Mr. Q. Albu's Evidence. 31

Oovemment agree to give us the reforms which are really and fairly required by the
mining industry. Figures will prove anything to you, but you can twist figures as
you like, the facts wiS be very bitter, and they will prove much mor^ than figures.

I understand that the question of dynamite is a serious one in the development
of the industry ? — It is, sir.

These are really the two big questions ? — Just so ; but I would like to give you Railway mtes on
one lot of figurea A merchant here has brought me a bill of lading for 180 bags of '**^**^*^'^**-
Sour. From Bloemfontein to the Bridge, a distance of 210 miles, the railway charge
is £4 15a 6d., but from Vereeniging to Johannesburg it cost £6, or 50 per cent, dearer,
And only quarter the distance. These are the items which make our foodstuffs very dear.
Hierefore, I say the tariffs must be reduced all round. The Government need not fear
that the receipts of the Netherlands Railway Company will be reduced if they reduce
their tariff, and I would guarantee that the receipts will be more than doubled, and
that the Netherlands Company will still make a big profit ; indeed, I should not bo
surprised to see the profit almost as high as last year. The Netherlands Company
has not yet felt the effects of the calamity which has befallen the Rand. There are
«tiU millions of pounds to be spent on machinery, which is coming out in a few
XDonths' tima When this is finished, then the countrv will awaken to the fact that
ire are going to have disastrous times here, and the only way you can prevent that is,
by tiie Government and the mining industry acting as surgeons, and consulting as to
the best means and methods to operate on the sick patient, which is the mining
indofltry.

But, in order to cure the disease, we must know where it lies. As to the ^9*\J^^ °»**^*
labour question, I understand that is one of the biggest before us ? — The native
labour question is a very big one, and the mining industry will deal with it.
All we request is, that the Government will help us to get the natives in a Duty of oovem-
iair and reasonable manner. That we should not be compelled to pay every "*®°^*
Native Commissioner 10a or £1 for his goodwill; that the railway should not
charge too much ; and that the administration of the Pass Law — which in itself is a
good law, with slight alterations — should be properly administered. Its administra-
tion should always be a matter for discussion between the leaders of the mining
industry and the Government officials. As I have stated before, it would be very
advantageous, and would have a salutary effect upon the mining industry and the
country at large, if the Government were to consult on questions which affect the
mining industry with the members of the mining^ industry, and on questions which
aflfect the commercial community with members of the commercial community, and I
come back to your question that we shall be able to deal with the native labour ques-
tioa if you give us only the slight help we ask you for.

All kamrs who come here come over the border ? — They come from Komati
and from the Cape Colony. The main question is, we will reduce native wages,
and the support which we ask from the Government is a minor question then ;
the working of the Pass Law must be thoroughly gone into ; the Liquor Law is one
of the side issues of that question.

The proper enforcement of the Pass Law will not help you very much, as before
yoQ enforce it you must have the niggers here ? — We have got the niggers here.

And there is no difficulty in getting kaffirs ? — No.

And then the great difficulty is taken away from our side about the labour
question ? — Yes, that question affects us ; for this disease we are to be the surgeon.

I think you said it would be desirable that you should be better represented in Bepreaentation
the Volksraad or Executive Council ? — I have saia, unfortunately we have no voice in Siw^,^^ *"*
the Volksraad or in the legislation of the country, and I therefore have recommend ed

32 Mr. Q« Albu's Evidence.

that the Qovemment should elect consulting members for the mining industry and" '
the commercial representatives.

The burghers in Johannesburg have the same representation as the rest of the
country. — Johannesburg has a very small number of members, and then the .members
are burghers whom you don't expect to understand the requirements of the mining
industry.

Mr. Jeppe understood the requirements of the industry. — Mr. Jeppe was by pro-
fession an advocate, and not a mining man. If such an advisory Board existed, I
think it would be almost unnecessary to have a CSommission appointed. The advisory^
members and the representatives of the Government would long ago have come to the
conclusion at which I l^ope we will come to now.

There was nothing prevented the industry before now from trying to bring about
the appointment of a Commission, or the conclusion which we are arriving at now ? — I
can only say I wish it had been done years ago.

That is not a reply to my question. — I can only say I would it had been done
years ago.

I put my question in order to show that the Executive and the Government
were always prepared to receive any deputation from the goldfields in the
interests of the goldiields. The Minister of Mines is not only prepared, as he is in
duty bound, whenever he is called here by the Chamber of Mines or the Chamber, of
Commerce or the public in general, to put before the Government any communications
made to him, and the grievances reported to him. It is a pity that we have never
before come as far as we have to-day. These are matters belonging to the past, and
we will try to improve them. There is one question I wish to put to you : You have
acknowledged the Government must meet the industry and the industry must meet
part of the difficulties themselves ? — Yea
Duty of Mining ^.ud vou cvcu wcnt SO far as to say that if the Government were to rive
gaidiDgreduc- you everything you ask for, and the leaders of the mining industry would not
^nofworiting ^^^^^ thcmselves from their side, then all the eflTorts would be in vain. — They
would not help to a great extent, but I think it would neflect very badly on
us if the Government were to give us what we require, and we do nothing^
in order to bring about a reduction in general expenses, and I assure you
there would be such an uproar in Europe among shareholders that the task of
managers-directors and directors of mines would be most unpalatable. Besides, you
must not forget one fact, that the men who are living here, the leaders of the mining
industry, have every penny they possess invested in spite of the big boom which took
place in 1895. You see all these men like Robinson, Bamato, and others have come
out here to look after their interests. Do you think they would do that if they had
no shares or no interest in this place. I venture to state their interests are as large as
ever they have been, and they will do their utmost to make the money they have
invested here remunerative — quite apart from the duty they owe to the shareholders,
in Europe.
Atutude of Gov. I put my qucstiou in order to explain to you that now is the opportunity

ernment. ^^ your sidc to put whatever you require from the Government before the
Commission, and then it will be necessary for the Government to know exactly
what mistakes were made on your side. Therefore, it will be necessary for us later
on to enter into details of the management of mines, and any mistakes made in the
management. — Yes. We, at the present moment, are engaged in bringing about these
reforms that we can bring about.

You knew all the difficulties on your side for some time past, why didn't you
move first, and then come to the Government ? Now you want the Government

Mr. Q. Albu's Evidence. 33

to make the first move, and then the mines will follow suit.— It is not a question
of the Government moving first and the mines following suit We could not,
for instance, reduce the wages if we have to pay these high tari&. We anticipated
a long time ago that the Gk)vemment would see the necessity of granting the
reforms asked For by the industry. The Government will very soon find out, and
be convinced of the necessity, by their own budget.

The Government has seen the necessity, and we all understand that the interests
and progress of the industry are the interests and progress of the country.

Mr. Smit

What did you mean just now when you said that you cannot decrease wages BaUwftymtes on
while you are still paying high railway rates ? — I have just quoted an instance, that '°*^*'***-
of flour, which comes from Bloemfontein to the bridge. For instance, during the
drought we imported mealies from America. They cost us, landed in Durban,
98., and delivered on the mine 22s. 6d. How can the mining industry, which requires
50,000 sacks per month, pay if they have to pay on a commodity of that kind more
than 100 per cent, for railway transit for 350 miles, after these mealies have come
thousands of miles from America.

Yesterday and to-day you pointed out frequently that the Railway Company has BaUway pronu.
a capital of £1,666,000, and to that you compare the high revenue. You know that
the railway cost seven millions, so that we have not got to pay interest on one million,
bat on seven millions.— I can answer to this, that if the Transvaal Government's
credit is good enough, provided that the industry is in a flourishing state — which
again, I think depends upon the Government of the State — the Transvaal Govern-
ment's credit is good enough to issue debentures for the whole of this railway, say
for nine million pounds sterling at 3} per cent, per annum, which would mean an
expenditure of £300,000 a year. That is what it would cost you. What is the good
of the credit of the State when the State does not employ that credit ?

I difier from you. In order to keep the credit of the State good you must make use
of it as little as you can. Here, too much use has been made of credit, and that is the
reaaon that you are now going back. — If the Transvaal had made use of its credit in
fioch a way as a State can make use of its credit, for the purpose of building railways,
then I think the credit of the Band would have been better. You have two bank
managers present, Messrs. Hugo and Pierce, who, I think, will bear me out in that.

You speak of profit. Do you mean nett profit or gross profit ? — The actual ® rJJj^"^ °*^*
receipts of the Netherlands for 1896 came to £2,970,000 ; working expenses came to fits, ^ '^"^
£1^7,000, and that left over £1,700,000 for distribution, for the payment of debentures,
and for dividends to be paid to the shareholders. Now, supposing you had to pay 6
per cent — I believe the State could get money for 3 per cent — ^but say you had to pay
6 per cent. You give the debenture holders 6 per cent. ; that would require £435,000.
lliie working expenses for 1896, £1,237,000, total interest of 6 per cent., and working
expenses come to £1,672,000. The actual receipts were £2,970,000, therefore there
remains an excess of £1,298,000.

I want to go back to the report of 1895. In taking the nett profit you have left BiUway divi-
out of account the enormous expenses for permanent works, improving stations, &c. — dendsfonsos.
That is capital expenditure. For 1895 you paid dividends to the shareholders of
almost 9 per cent., besides which the Government receives its share of the 85 per cent.
£322,000. That makes altogether a total on the capital of the Netherlands — without the
debentures of course, for these you had to pay first — that makes a total of 36^ per
ent. dividend for 1895. First you pay the debentures, then you pay the shareholders
6 per cent., then the Government get their share of the 85 per cent., and then there

34 Mr. Q. Albu's Evidence.

is a division again to the shareholders out of the 15 per cent, after the payment of the
85 per cent. It has always been a commercial maxim that if you reduce these
amounts, if the burdens which the industry has to bear are lessened and brought
down to a level, it will enable us to live on, and your profits will not diminish.

Mr. de Beer.

Do you know whether the Glen Grey Act works well ? — I think so.

Nominal oHiiuit Now, cau you givc me a definition of the nominal capital of companies ? — ^The
nominal capital is that capital represented by the property and working capital
including the reserve shares.

notations. Suppose, now, a company of £150,000 nominal capital Is all that money in

circulation, or would it be used in the development of the mine ? — If a company is
floated with a nominal capital of £150,000 there will be a certain amount of this
capital which would go to pay the vendors for the ground.

Can you tell us how much ? — That entirely differs. All the rest would be devoted
for the development of the mine and for the erection of machinery. The remainder is
the cash or working capital

Would I be wrong in such a case if I supposed that £75,000 would go to the
vendors out of £150,000 as an average ? — That would entirely depend on the value of
the ground, and in order to answer this question correctly I must refer you to
flotations which have taken place four, five, and eight years ago. In those days we

^^g^oi^taL*^''' thought that a working capital of £50,000 was a large amount, but since we have
gained the knowledge that the amount to equip a mine with 50 heavy stamps, with
machinery of the latest type, and to develop this mine, costs alone about £120,000.
Since we have gained that knowledge we do not float any more companies, the work-

coBt^. *»^^^^»"« ing capital of which would only be £50,000. It would be quite impossible to equip

eqni men ^^^ mincs in a manner which from the outset would guarantee a certain amount

of success, without most of these mines issuing their reserve shares or increasing their

Reserve shares, capital. Thcsc rcscrvc sharcs were not issued at par, but at very large preiaiums
varying from £2 to £20 per share. Now, to give an illustration, the capital of the

Meyer k chari- Mcycr and Charltou is now £85,000. In order to equip the mine we raised the
capital two years ago, which was £75,000, by 10,000 shares, bringing up the capital to
£85,000. For these 10,000 shares certain firms have paid the company at the rate of
£7 per share. That is almost as much as the whole capital was at the time. If I had
been compelled to create the £70,000 cash at par, I should have increased the capital
of the Meyer and Charlton from £75,000 to £150,000.

This is an isolated case ? — No it is not an isolated case, but occurs almost in

^'ISSS SSea* every company. In the George Goch Company, firms have taken up only a little
over 30,000 shares for £90,000 cash, and so I can give examples in any quantity.

^SarS. ^^^'^ The Ferreira Company for instance, four or five years affo sold tneir reserve shares in

Modderfontein Order to equip the mine properly, at £15 a share. The Modderfontein Company sold
reserve shares, ^j^^ jj, rcscrve sharcs at £6 per share.

On which do you pay dividends, speaking of the first company ? — On £85,000.

How would the company with £150,000 capital pay ? — On all shares issued.
Only the reserve shares do not receive dividends.

Now, with the Company with £150,000 capital, on how much would you have to
pay dividends ? — As I said, on all shares issued.

You say that seven or eight years ago £50,000 would have been considered
sufficient working capital ? — Yes.
^^SctJS**' ^' Taking the company with the capital of £150,000, how would the profits be paid
out ? — The dividends would be paid from the profits on the whole of the capital

Mr. Q. Albu'8 Evidence. 35

I have nothing against the system, I only wanted to show that the mines were very vendoiv ihMes*
wealthy, and the dividends paid did not represent the riches of the mine, or the
money invested in theuL — ^The shares given to the owners of the ground are also in
circolktioiL We cannot possibly expect them to put the ground in without.

Does the working capital, plus the ground, make £150,000 ? — ^The promoters, of
coarse, get something.

How are they paid ? — Some are floated high and others low.

Ton keep £50,000 as a cash working capital. Now there is £100,000 left Is Fiouuona.
the mine represented by £100,000 ? — The promoters, and the vendors, and the middle-
men get paid out of the amount. In some instances they have received 80,000 share&
The promoter who pays down £50,000 cash may sometimes receive 20,000 shares, for
yon must remember that mining is at best only a speculation, and after he puts in
£50,000 he does not know whether he will get it back. The shares may be worth
pounds or shillings, and the man who gets the 80,000 shares takes the risk. There is
no business which carries such great risks as mining, and that is a recognised fact, and
it is for this reason that people all over the world who invest money in mining expect
to get a bigger return than those who invest money in railwaya

Now, coming to the labour question. You do not quote lump sums in this ? — The Peroentaffe of
kbonr takes more than 50 per cent, of the money in mining companies on the Band. *»**«^***^
We will say between 51 and 52 per cent.

What is the percentage of railway carriage in working costs ? We have got 52 ^*7|f*W ^^
per cent as labour coet^ ; now, which is the percentage for carriage ? — To ^ve an exact wo^riSngooitf
or approximate estimate is impossible. For ever copper penny you spend in mining
tames a certain proportion of freight.

Ton complain that freight charges are high. There are certain things charged
•direct to carriage and freight ? — No, nothing is charged direct. If we Order machinery
from Home it is entered in the books costing so much delivered at the mine, including
the price paid the engineering firm, shipping charges, and railway freight.

Don't you enter the expenditure in the books under different headings ? — Yes,
items are debited so much under cyanide, or hauling charges, or shipping charges.
But we often get machinery and timber through the agent here, and as to how much
of the charges went to carriage and shipping he could not say exactly, but would only
repeat the statement he gave the other day, that the shipping of a load of timber that iute« of freight
cost £1,100 cost £6,000 landed here.

It is an isolated case. — In the case of mealies bought in America, they cost six
times as much delivered at the minea

That does not explain. I want the percentage or exact total. — The cost is 100
per cent, more than I can buy at Home. If I pay £25,000 for machinery in England,
It costs £50,000 here.

You can tell us that labour represents 50 per cent, and now in the case of
carriage you ^ve us an isolated case. — It is difiicult to say ; but all I can tell you, sir,
18 that the railway charges are so tremendous on the original cost, that, not only
are installations excessively dear, but living is also, in consequence, dearer than it
would be if we had cheaper ratea

The system in which you keep your books is not known to me. So far as I know
the receipts and expenditure are booked under different headings, especially such an
important item, freight, which ought to have a heading to itself. — I have explained we
don't buy machinery at all. The commercial people who supply us make us a charge
delivered at the mine. I think you will to some extent get this information from the
people in the commercial business.

36 Mr. Q. Albu'8 Evidence.

The direct complaint is againsf^the railway company, and, in order to test that
we must know which proportion of expenditure constitutes freight. — ^It is quite^
impossible to state, and if it is not a sufficient illustration that the mining industry^
which has invested between 75 and 100 millions has made a visible profit of one-ana-
a-half millions, whilst the railway company, which has actually invested £1,166,000^
has made a profit for 1896 of over a million — then if this is not a sufficient illustra-
tion of circumstances, and if these figures don't appeal to you, the figures you seek
to obtain, and which are almost impossible to obtain, will never illustrate to you the-
necessity of reducing railway charges.
Profltec^ther- You quoted oue million. Mr. Smit later on said it was seven milliona — Yes, hut
''^* the six millions are debentures of the Government, which is after all the guardian of
its people, and must look after the interests of its people. It has been appointed by"
the people, and should study the interests of the industry of the land. It they can.
get money at 4 per cent, then I think it is a suicidal policy which the Gk)vemment
pursues if they take from the people 36 per cent, dividenda If you will allow me,,
that is with regard to the income of the Netherlands Railway, I will give you the
figures of the profits made by the Cape Government Railway.
Proflto of Cape Have you brought these forward before ? — ^No. As you are all aware, th&
Nat»?^Rii.u- progress which the Cape Colony and Natal have made of late years is only due to the-
^y** industry of the Transvaal. The figures will show what this industry is taxed withi.

I will first give you the figures of the Cape Government Railway. They expended on
their railway lines 20^ millions. The interest on the capital expenditure was 4 per
cent., which is a very handsome amount. That will make £820,000. The actual
working expenses, as published in their accounts for 1896, amount to £1,922,000, so*
if you take the interest on the capital and the working expenses, these two items
come to £2,742,000. Now, will you believe me when I tell you that the gross receipts,
for 1896 for the Cape Government Railway — including the Free State, of course —
amounted to £4,079,000. After paying interest of 4 per cent and after paying work-
ing expenses, they have still a surplus of £1,337,000, and those railways did not pay
before the Transvaal existed. I do not want to weary you too much with figures.
A similar statement applies to the Natal Government Railway. Their surplus, after
paying 4 per cent, on their capital, and after paying all their working expenses,,
amounted to almost half a million pounds. You also know the Natal Riilway did
not pay until it was brought up to Charlestown. These two surpluses amount to
£1,800,000, and that simply comes out of the Transvaal.
FrciKhte. What proportion of expenses is the freight on coal ? —The percentage of expenses*

at one mine with which I am connected, for coal, is 15 per cent., and the carriage of it
is 50 per cent.

You don't follow me. We have got the percentage of labour at 50) per cent.
Now, we want to make up the 100 per cent. What is the cost of freight on coal
alone ? — It is between 7J and 10 per cent. That includes, of course, the carriage to-
the sidings *of the various works.

Can you give us statistics. We want to get the division of percentage to make^
up the 100 per cent. ? — I can give it to you roughly now.

Mr. de Beer said he could hand them in later on.

Mr. Brakhan,

^ nSte **" ^^ "* ^ should like to revert to two questions put to you yesterday. The first is, that

about two or two and a half years ago the Government issued permits to the mining^
industry to import dynamite. Then, I think, the cost of dynamite was between
40s. and 45s. per case, delivered in Johannesburg, exclusive of duty. Cfeui you explain.

f^r. a AIbU'$ Bvidejice; 37

to me why the difference occurs, because th6 mines had not the advantage of these
impori tariffs ? — I could not give information yesterday on the point, but I have since
then ascertained from various permit holders the reason why we had to pay so much
for dynamite at that time when permits were granted by the Government. The
(jovemment exacted from 37a 6d. to 40& per case duty, which we had to pay, and
vhich was added to the cost price of the imported stuff. It is a very curious fact,
however, that the Government only gets now 5s. per case. Two and a half years ago,
the period you are alluding to, the Government received about 408. per case duty.

Then I wish also to ask you with regard to the Gold Law. The mining industry TuaMonoiuyn^
ptys licences on claims, whilst on mynpadits the (Jold Law provides that the Govern- p^*»*^
jumt IB entitled to charge 2^ per cent, on gold produced by companies which have
mynpachta My question was, but I mav not have made it very clear, whether, in
joor opinion, if tms 2^ per cent, were charged on the gold produced bv mynpacht
tonpanies — I do not speak of ]the poor ones — would it be a great disadvantage
against those companies which merely work their claim properties ? — As compara-
tively bat few — only one or two— -mynpachts are rich, I can only come to the con-
dusicn that if Government were to exact 2^ per cent, on the mjnipacht, then the
result would be very disastrous to the mynpacht companies. If they were all rich
iiiyiipachts — and when I talk of rich mynpachts the Robinson is a rich mynpacht —
if diey were all similarly or even approximately as rich as that, it might not hurt
them so much, but as I have stated oef ore, most mynpachts are too poor, and a charge
fi that kind would be a serious loss to the company.

Reverting to the evidence of this morning, I should like to ask you whether itPeroentafire of
is not a fact that the proportion of wages to the proportion paid for stores and "*"**^
material in the working expenses of mining in other parts of the world is also very
tocudderable, that is to say that the proportion paid for wages is larger than that
which is paid for stores ? — ^You mean in this country ?

No ; in other parts, because here it is 51 per cent. — You want to know if the pro-
portion of stores lused here —

I want to know your opinion generally — whether in other parts of the world the
percentage of wages to material — what you call here stores, is also not greater ? Is
the 51 per cent, m this country normal ? — I have not had very much experience
of minmg at Home, because when I came to this country I came almost from school,
hat from what I have been able to gather from the reports, I find in Europe, and
America ajs well, the heaviest proportion is always the wages paid to workmen.

Therefore you do not consider 51 per cent., which falls here for wages — white
and native, excessive ? — No. I do not think so. If the mines are managed with the
utmost care we may be able to reduce this item a little, but I don't think we can
reduce it very much — comparatively much, I mean. On the other hand, if our
requests are granted as regards railway rates, dynamite, etc., then the amount for
wages will be a smaller one.

One question with regard to flotations years ago when this mining industry was notation.
in its infancy. You say that the working capital was moderate, and that the
]nx>moters in these companies got certain shares for putting in the ground, and also for
putting in the money. Now I want to know from you whether they were well
mforaoed about the value of these reefs. Do you consider the shares which these
promoters took in loan for their working capital which they put in, and also for the
^und, whether they were too high considering that at that time one did not know
what those £50,000 would bring ? — I have explained to Mr. de Beer that I consider
4^ntalists are the people who put in capital in those days, and ran the risk of losing
fiieir money they put m. And to show you how uncertain we were of the quality of

38 Mr. E. J. Way's Evidence.

our mines, I may simply point out to you that in 1887 or 1888 a very eminent mining*
en^neer, Mr. Gardner Williams, came up to the Rand to report for Messrs. Wemher^
Beit, and Co., and that his reports were unfavourable, and to the effect that he did
not think the conglomerate bed would be continuous and that it was only a suiface
wash. I may say here that this opinion advanced by Mr. Gardner Williams at
the time does not in the least reflect upon his ability as a mining engineer, because
the conglomerate bed as found her^ had never been met with anywhere in the world,
and that his conclusions were at the time perfectly justified. Does it not strike yoa
as being very plucky for men to put in £50,000 or £5,000 at the time, and as th&
profit is always in proportion to the risk which a commercial man takes, that the
money which these men in the early days made they were justly entitled to make ?
K you have a mine you can get your working capital subscribed at par, or evea
people are willing to pay premiums, or, as I have pointed out to Mr. de Beer, the
reserve shares were subscribed for at premiums varying from 200 per cent, to 2,000
per cent.

Now must I understand that those premiums paid lately have been paid by the
public, by groups of financiers, or by the promoters of the mines ? — ^The issues have been
guaranteed ana generally subscribed for by financiers.

Then those who formerly had no shares have lately paid for shares considerably
over par ? — Just so.

Chairman.

I must now thank you, Mr. Albu, for the manner in which you gave evidence*
and I can assure you that you have assisted us materially in our work. So far we have
finished with you, although I think we shall recall you later on.

Mr. Edward Mr. Edward J. Way, manager of the George Goch Mine, was called. Mr. Way
den^^ ^^* stated that he was manager of the George Goch for three years past, and

prior to that he had been manager of the Eastleigh Mines at Klerksdorp.

Chairman.

On the lines indicated by you, the Commission, after your statement, will put other

questiona

cort of native Witness.] With regard to the question of mining costs there are four or five chief

^'"' headings to engage one\ attention upon which reductions can be made. The most

important is kt& wages. Taking the figures of my mine as a criterion, the average

wage paid to each boy amounts to about 2s. Id. per shift and his food. Previous ta

November, 1896, it amounted to from 2s. 7d. to 2s. 8d. per shift. The natives of my

Muctionof na- own mine draw monthly from £3,500 to £3,900. Most of the managers have notified

vewagw. ^ij^gjj. Boards that in their opinion these wages should be reduced one-third, and the

matter is now under serious consideration. On the George Goch Mine this would mean

a reduction of £1,300 per month. The wages then would even be higher than were

paid by me ten years ago in Pilgrim's Rest.

Mr. Hugo.

How much higher ? — The average wage paid in 1889 was about 27s. per calendar
month, with food. The wage now, if this reduction takes place, will be about 40s. per
calendar month. That is the maximum. The next question is dynamite. The George
dynamite costs. Goch CSompanv pays at present about from £1,000 to £1,200 per month for dynamite.
If it were possible to reduce this dynamite from about £5 per case to 50s. per case, it would
save us from five to six hundred pounds per month, which is about Is. per ton on the

Mr. B. J. Way*8 Evidence. 39

ore treated per montL The next question is the question of coaL At present we pay ooai freights.

16& 3d. per ton for nut coal — ^that is small coal — and 18s. 9d. for the large coal, all

ddivered in bags. , It would be possible to get this coal, if not delivered in bags, at from

156. to 16s. per ton. I think it is possible to deliver coal to the centre of the Witwaters-

nmd at from 12s. to 13s. per ton, provided the railway freight be reduced. This would

mean a saving to the Qeorge Goch Mine of 5s. 6d. per ton on about 2,000 tons of coal

— about £1,0M) per montL My present coal bill is about £1,900 per month. Coal,

dynamite, and native labour wages, which I have just given you, if reduced in the way

I have suggested, would mean a saving of approximately £36,000 a year to my

company. This would be entirely profit, and is equal to over 10 per cent, upon the

capital of the company, which at the present moment is not paying any dividends at

alL With regard to the question of further reduction of white wages, I think the hi^h

eoBt of living must be seriously taken into consideration before any steps are taken in

that direction. If we can reduce the cost of living, and make a reduction in the other white w^gw,

items which I have mentioned, I think we shall have reasonable grounds for attacking

white wages. At the present time, upon the. Qeorge Ooch Mine, wages alone are 55 per

cent, of the total expenditure.

Mr. de Beer.

Everything included ? — Yes.

Mr. Smit

White and black labour ? — Yes. Native labour, with food, comes to about Percentage of
27 per cent, and the white labour to about 28 per cent. The actual stores consumed,
flucn as drill steel, machinery, mealie meal, and other items which make up*the trade
accounts of the mine, could be possibly very greatly reduced. The trade accoimts,
exclusive of dynamite, amount to about from £2,800 to £3,300 per month. Ten or 20
per cent reduction on this amount would mean a further saving of from £300 to £600
per month, so that if you add these figures together — ^the £3,000 1 have mentioned and
the other reductions — ^it would come to £3,600 per month. That is equal to about from
6a Sd- to Ts. 3d. per ton, and would reduce our expenses to about 15s. per ton, including
everything. The two items of dynamite and coal on the George Goch Mine come to
£36,000 a year ; the whole item of wages would amount to from £80,000 to £90,000 a
year ; the proposed reduction of native wages would mean a saving of about £16,000 a
year on the George GocL

Mr. Joviert,

Supposing it to be possible that the Government were to give low railway
rates, make a reduction in the price of dynamite and the price of kafir labour, would
the mines then be prepared, when any further complaint was made, to co-operate
with the Government, and show the outside world that such complaint was ground-
less ? — I should say that the matters which are being brought up before this Commission
few redress will be complete, and I should not anticipate that anything further will be
brought up. It depenas entirely on the scope of the enquiry.

The question is : Would the mines be prepared, if the Government does its best to co-opcr»tion of
meet these grievances, and then, if any further complaint was made, to co-operate with ";»in*n«f leadew
Uie Government to convince the public at large that such complaints were groundless ? —
Tliat is a question I hardly can answer.

I simply want to know your opinion on the subject ? — It strikes me that question
would be answered more readily by the heads of the mining groups. My opinion is
that if the Government and the mining industry co-operate together and act together,
I don't see how there can be any further cause of complaint.

40 Mr. E. J. Way's Evidence^

I want to be assured in case I make recommendationsto the Government, and these
recommendations are adopted, that the Qovemment can then depend on the support of
the minea — ^I should say they will be supported by the mines if their recommendations
are adopted.

One of the objects of the Commission is to put matters on such a basis that the
mines can co-operate with the Government to brmg them all to a good state, and I, as .
a member of the Committee, would like to know from the managers if the Government
redress these grievances, whether the mines would co-operate with the Government ? —
I should say most certainly.

Mr. de Beer,

^^ JtSL*^ You say the wagea are £80,000 per annum ? — Yes.

As far as I understand it is divided pretty equally among black and white ? — Yes;
including the food of the natives.

How many white employees have you got ? — 180 ; but I must say, in continuation,
that at least 70 or 80 of that number are employed upon what we call capital expendi-
ture— what we call construction. In an ordinary way we have 105.

How many kafirs have you got ? — At the pi;esent moment in my compound I have
1,335.

What is the aggregate per head for white labour ? — Do you include managers ? —
Are they included m the 105 ? — Yes.
A^^rayeofwhue What is the aggregate wage of the 105 ? — From £25 to £27 per month,

ariea. I make it over £30. — That may be owing to the fact that in the amount I named

I included town salaries, directors' fees, and the head office in Berlin and the London
office expenses. The actual number of white employees stated by me is 105, and if
Mr. de Beer is dividing the amount I gave by that number, I must include seven or
eight more, because they are not under my control. I am merely speaking of those
under my control. There is the secretary in town, for instance, and his staff. My
figures are approximate : I have no notes.
Average native What would the average kaffir wages per head be per year ? — The average would
^'^^^^ be something under £35 per year ; we oon't, pay them all the same.

Then you think that the amount of wage paid to your 1,335 kaffirs per year can

be reduced by about one-third ? — ^Yea

ReducUon of You sec uo chaucc of reducing the wages of white labour — those who get an

white wairefl. average of £30 per month ? — The possible average of my mine probably differs from

other mines ; I am merely taking the figures of the George Goch Mine. It may be

that other mines pay higher or lower as the case may be.

It is rumoured that there are thousands of white miners out of employment
This being so, is there no chance to reduce wages ? — That is not my experience. I
have the greatest difficulty in getting good miners. I will give the Commission an
example. I advertised in the Star for two pump men, and I had only one application,
and the applicant was absolutely incompetent. I can understand that there are a
great many men out of employment, but they are not competent, and so long as we
have not got an over-abundance of competent white miners, we cannot hope to reduce
their wages unless we can reduce the cost of living.
^iJJieJf ^***** 1^0 you consider that £340 a year is an abnormal salary for a white man ? — It

Contract work.: depends entirely upon the work he does. If he is employed on contract work and
relies upon his own efforts, I personally have no objection to a man earning £35 to £40
per month. If I employ a cheaper man to do this work he would probably bum
twice as much dynamite, so that the difference between the men is thus balanced.
My experience is that if you can get together a good body of men and pay them well,

Mr* E. J. Way's Evidence* 41

the money which they save in other departments a great deal more than covers the
increased wa^ they may be earning.

Do I understand that these 105 are skilled labourers? — It depends. on what line
of demarcation you draw between skilled and unskilled labour. The only unskilled
men we have are the actual minera

And their salary ? — £4 lOs. per week.

And you consider that with the high cost of living it is difficult to reduce that ? —
It comes particularly heavy on married men. A single man can possibly save, if he wa^M of mar-
saves everything possible, perhaps £100 a year. But the married man has several ** »*»«»•
disadvantages. As a rule he does not get a house free upon the company's property.
He has house rent to pay, and there is the keep of his wife and possibly a family,
and he cannot live under a margin of £18 or £20 per month. A very large percentage
of the men who live as sine^le men on the Band, particularly among the C!omish
miners, have wives and families in Cornwall, so that the apparent saving, so far as
we know it, possibly goes to keep a wife and family in Cornwall. Most of the miners
■on the George Goch are Comishmen.

Do you order your machinery direct from the manufacturers ? — Does Mr. de Pa«*Me oi.
Beer mean me personally.

Tour company ? — Yes, from agents in Johannesburg.

What do the agents charge on that do you know ? — As a rule the work is given
out to contract, and the lowest tender is accepted. If the nd,ture of the work
precludes it being given out to contract it is supplied on what is called prime cost,
that is to say, the principals of the agents in Johannesburg send the exact cost of
making the work, together with their profit, to which is added freight and railage,
and, as a rule, the agent here gets 5 per cent, on that.

Do the railway charges always appear as separate items ? — In our . accounts
'Certainly. I understood you to refer to prime cost wnen you spoke about railage. If
we buy stores from merchants in town we know nothing about railage.

I am speaking of machinery ? — ^Yes, in regard to machinery.

Mr. Smit

One of the biggest items of your expenditure is labour, which means 55 per Percentage of
^cent ?— Tea ^*^" «**»•

Amongst which is 27 per cent, for kafir labour, and 28 for white ? — Yea

Are any steps being taken by the George Goch, in conjunction with other Reduction of
companies, to get the wages reduced ? — Yes. uiJe^wiSi"*

What steps are being taken ? — As I pointed out to the Commission, the managers
have recommended ther directors to go into the question of further reducing kaffir
wages by 33 per cent. The question of the reduction of white wages is also under
consideration.

Can you tell what the mine managers will get ? — They will get anything from salaries of Mine
JE1,000 to £4,000 a year. ^**'^"-

There is no case where they get more than £4,000 ? — I cannot tell that

On the diflFerent savings suggested by you, what would be the total amount in
saving effected by the George uoch after all the reductions were made ? — Over
£40,000 a year.

Waffes come to 55 per cent. How do you make up the rest ? — Dynamite, about Percentage of

^ A ^ M 11 i "^ -• jiTi'ij*^' ' ^ mining coatii.

12 per cent. ; coal, about 11 per cent. — that is coal and carnage.

How much of the 11 per cent, belongs to carriage ? — About one-half, roughly.

And how is the remainder of the total made up ? — It would be taken up in
geDersl stores, such as candles, fuse, pipe fittings, cyanide. Cyanide amounts to aoout

42 Mr. E. J. Way's Evidence.

2 to 3| per cent Mine timber would amount to 3 or 4 per cent. The price of min^
timber largely depends upon the source from which it is obtained. At the present
moment our supplies are mostly coming from Natal, as the farmers of the Transvaal
have not been oringing in large quantities lately. I believe a pole which costs about
Is. in Natal costs 8a or 9s. by the time we get it.
''Yrei^?^ on ^^ ^^J ^*^» ^^® chargc for railway carriage debited to general expenditure
working costa. account would ouly be on coal, 5 J per cent.? — It is very difficult in bujang from
merchants in Johannesburg to know what has been paid for railage, freight, Customs,
and transit dues. As a rule, the mine manager makes a contract with a merchant^
and, as far as he possibly can, he accepts the lowest possible figure. He does not
concern himself at all as to the actual way in which the cost is made up.

Chairman.

Have you had occasion lately to dismiss white labour ? — ^No.
I mean fixed miners on the mine ? — No. '

Mr. tichrrtitZ'DuTnorkt

You have said that of the price of coal one-half ought to be debited to railage ? —
I said approximately.

You say 11 per cent, is the proportion of your expenditure used by coal ? — Yea

The salaries of white people are so high because the cost of living is so high, and
the Commission would like to know what the amount is which the mines pay for
railage to the railway company indirectly through their consumption on different
articles? — I cannot say. In my opinion I would say that is a question for th^
merchants.

It is impossible to fix the amount which goes to the railway in proportion to the
salaries of white men ? — From my point of view it is impossible.
Scarcity of com. You Say it is difficult to get competent miners for the mines ? — Yes.
pe n miners. What class of people are they, now, who walk about Johannesburg and without

work ? — I think they are more of the more artisan class.

It is a certain fact that really competent men are scarce? — In my opinion
competent miners are scarce. The State Mining Engineer should know almost as well
as I do.

Mr. Brakhan.

Peroentofe o' Am I to Understand from you that the books at the mine, or the books of thfr
worw^ coets. Company show to no material extent the railage, that is to say, the cost which really
goes to the railway company on all the various articles used? — In hardly one
particular case.

Then I am to understand from you that the cost actually paid to the railway does
not so much come from the mine, but from the merchants wno supply the various,
machinery, wood, and various other plant and stores ? — Yes.

Thereifore if the mines were to compile out of the books the amount of freight paid
direct to the railway company this would give no idea whatever of the situation ? —
None whatever.

In other words, the amount of material, whatever it might be, imported direct by
the company is a very small one ? — Very small. Coal, for instance, is delivered at a
contract price ; it is delivered at the different works at a fixed price, and we are not
informed how much it cost per mile to carry it
^tire^el"*^ You have informed us that the mine managers have advised the Boards

to reduce the kaffir wages by one-third. Has that advice come from all the

Mr. E. J. Way's Evidence. 43

managers along the reef ? — ^In the first place the Council of the Mine Managfers' Asso-
ciation unanimously decided that it was an opportune time that the reduction should
take place. It was then brought before the Chamber of Mines, Association of Mines,
and the Rand Native Supply Association, and a meeting was held and a committee
formed. At the same time the mine managers had a general meeting, at which it was
unanimously decided that the time was opportune that the reduction should take
place, and tnat the reduction should be 33 per cent.

It has not come to your knowledge that any mine managers who were not present
at that general meeting, hold a different opinion ? — I have heard that is so.

Can you inform us whether the good supply of black labour on the Witwaters- ®"^?^ "***'
rand is general ?t-I think it depends to a large extent upon the locality and upon the
oompound management. I think, at the present time, the central part of the Band
has more natives than it requires. I have heard that the outside districts are short,
but I cannot understand how this can be when the Native Supply Association informs
us they have natives on hand whom no one wants.

Is it not a fact that kafirs are at times unwilling to go to certain parts of the
Rand — ^in fact, I may say insist on coming to the centre part ? — I should think it is
largely a question of management.

What is your opinion as to the quality of the native labour which is general here Quautyof nau^
—I speak more especially with regard to drill boys ?— In my experience, they are ^^"'•
very inferior to what they were six or seven years ago.

In other words, boys who used to work formerly here do not come back in such
big proportion, or the demands of the industry are so much greater ? — I think many
of the boys have become demoralised by the high wages which they receive. I have
boys working in my compound who did twice the work for 25s. a calendar month,
eight years ago, which they do now for £3.

In other words, the boys know they are to some extent masters of the situation ?
— They may think so, but 1 cannot admit they know it for a fact.

Are not lower wa£:es paid to natives in other districts — Pilgrim's Rest — than on wages at Pi
the Rand ? — The latest information is that in Pilgrim's Rest wages are about equal to ^^
what they are here, if not higher.

With regard to Barberton ? — I cannot say.

Is the number of skilled drill boys very limited ? — I don't think it is a question iwu boys.
of skill so much as unwillingness to work. There is a sort of understanding that in
the hard rock their work for the day should be one hole approximately 3 feet deep,
and that is so rooted in their minds that if a shift boss or mine foreman or manager
tries to get any more he loses his boys, because they will go at once to mines where
such labour is scarce.

Can you suggest any plan by which a permanent supply could be relied upon for Native location
the Rand, skilled principally ? — ^The only way is to give natives facilities for family
life. We do it to a certain extent on the George Qoch, and we get into considerable
trouble for doing it. We have a location upon our lower claims, and I have boys who
have their wives and families, who have been working at the mine for the last eight
yeara If locations could be established somewhere in the neighbourhood of the mines
— ^within walking distance — so that the natives could bring down their wives and
faimilies, I think you would have a far greater supply than you require.

I notice in your evidence you put native pay per month at £3. I think the other compound nuu
mines' average is a higher one. You also say you have a good supply of boys. Do you **®*"*°**
attribute these two points to the fact that you have a small location? — I attribute it to
that, and to the fact that we give considerable attention to our compound management.

Mr. S. J. Jennings* Evidence.

If r. Sydney Jen-
ning'a evi-
dence.

FaaeLaw.

Liquor Law.

Native

Coal.

Dynamite.

Mr. Sydney J. Jennings, General Manager of the Crown Reef Gold Mining
Company, stated he had been General Manager of the Company since the 1st
September, 1896. Before then he was manager of the Crown Deep and Lang-
laagte Deep.

ChairTnan.

You know the line of enquiry the Committee is pursuing, and I would be pleased
if you would give your own statement on the different points, and afterwards the
Members of the Commission will put questions.

Witness]. It seems to me the three chief points which affect the mines which are
not on the verge of paying dividends are these. The first is native wages. We have here
a most excellent law, in my opinion — namely the Pass Law — ^which, if properly carried
out, and efficiently administered, will enable us to get complete control over our kaffir
labourera The Pass Law, as it is carried out at present, does not give any satisfaction.
From the Crown Reef, where I am manager, no lewer than 1,030 kaffirs deserted since
the 1st June, 1896, and it is impossible n)r us to trace these kaffirs. If we take a
native to the Pass Office, and ask whether he has ever been registered before, it is
impossible for the officials to give us any information. If every kaffir could be traced ;
if it could be told whether they have been registered before, or been in the service of
a company, then we would have control over them. We can get kaffirs here from other

J)laces on a contract for twelve months, but they work for only two weeks and then
eave, and it is impossible for us to find them. We have another law, which is a very
food one, viz., the Liquor Law. When this law was first enforced, in January and
'ebruary, we received great benefit from it, in that the kaffirs were never drunk, or
suffering from the effects of drink, and consequently worked their full week, and did
better work than at the present time. The Liquor Law is not enforced now, or the
keepers of eating-houses, or dealers in drink think it will not be enforced, consequently
the kaffirs now get, freely and openly, drink of the most vile compounds, and this
makes them so that they csmnot work as well as before. I have a list here which
shows that the total sum paid in wages to kaffirs at the Crown Reef during 1896,
amounts to £63,902, 6s. la., and this is about 24 per cent, of the total costs of the work.
Then the cost of supplying the kaffirs with food was £12,503 for the same year, and this
is nearly Is. 3d. per ton, or 4 J per cent of the total cost. Therefore, the native labour and
native food amounted to 2s. lOd. per shift. If the Pass Law were properly and efficiently
administered, and the Liquor Law likewise, we could reduce this to Is. 6d. per shift.
Again, if we had complete control over the native labour, we could teach the kaffirs to
do all lower forms of work that are now done by white men. By these reductions
other mines would be brought into operation, and more white men of greater skill
would come into the country. The lower classes of labour, mostly unskilled,
would be done by kaffirs. This would be a permanent benefit to the country in many
directions. You would have more mines at work ; you would cause more goods to be
carried over the railroad, and the man who had invested his money in the mines would
receive greater dividends. The second point is the cost of coal. The Crown Reef paid
last year £25,909, 14a., which amounts to 2s. TJd. per ton. I am informed that we pay
an average of 19s. per ton for coal I am informed, but I don't know it of my own
knowledge, that of that amount 9s. is carriage, or not quite one half. Therefore, if the
carriage is reduced to a figure at which a great many think it possible to carry coal, it
should be reduced by 6s. per ton, or, on our expenses, about one-third of our coal bill, or
lOd. per ton working costs. The third point is djmamite. The Crown Reef spent on
djniamite last year £24,225, which amounts to 28. 5d. per ton, or 9 per cent of the total
cost. Having had considerable experience in dynamite, I should say that dynamite

Mr. S. J. Jennings' Evidence. 45

can be delivered here, exclusive of duty, at 36s. per case. The Crown Reef uses

blasting gelatine, for which it pays £5 9s. 3d. per case, delivered on the mine. If we

CTant the dynamite should pay even a lar^e duty, we should at least get it for half

uie amoimt we get it at now, which woula mean a saving of about Is. 2d. per ton at

the Crown Reef. The other items of expenditure on the Crown Reef are made up of Minin^f corts.

cyanide, and what might be called general stores, such as candles, steel, oils, pipes, and

pipe fittings, fuses, and detonators. These all pay railway caniage, which, in my

opinion, is very high, but of which I have no accurate statistics to give the Committee.

With regard to white labour, the salaries on the Crown Reef include directors' fees,

manager, consulting engineer, secretaiy, and every other white man working on the salaries oc

mine, cmne to £77,222, or 29 per cent, of the total cost. This amounts to ^^*^**

£24 Is. lOd. per month per man. In my opinion, unless a great reduction is

made in the cost of living, it is impossible to reduce that amount. It seems to me that

the policy should be to open up and make it possible for a great many more mines to

pay, so that we should be able to use more white labour of the very highest skill, to wwte wagw.

whom it would be cheap to pay a high wage. I would like to hand in this statement,

so that the Commission will have accurate statistics so far as the Crown Reef is

concerned.

Chairman.

What is the dividend paid by the Crown Reef? — We paid 140 per cent, on our Dividends o
capital, and in that connection I would like to make a statement. The capital of the ^'**^ *^-
Crown Reef is only £120,000. The total expenses of equipping and developing the c-gj^ofCrow
mine in such a way that it is possible to pay dividends, was £480,000 odd. Therefore,
the 140 per cent, mvidend on £120,000 capital is only about 35 per cent, on the money
spent in equipping it.

As regards kaffir labour, there is no diflSculty in getting a sufficient supply ? — supply of nat!?
There is no difficulty if we can keep those we get. ^^"*'*

Your remedy for that is that tne Liquor Law be properly carried out, and also the
Pass Law ? — Yes.

As regards white labour, have you any difficulty in getting skilled white labour ? ® ^Jiu^^^^hJ
— It is very difficult to get skilled white labour. laiwur.

Have you had any occasion to dismiss white labourers lately ? — Yes.

Can you tell us how many and why ? — About four or five, who have got sick or
gone home, or wanted to go home to England.

Have you got any great trouble about stealing amalgam ? — Not to my know-
ledge.

Is there any general complaint about I.G.B. ? — Yes, the complaint is very great. Gold thefts.
It has been shown in the case of the City and Suburban that an organised gang of
thieves has been at work, which, in that case, stole a large quantity of amalgam, and
it is fair to assume that that is not the only company.

Is it not possible to improve the labour conoitions by importing better machinery ? improved mAci
— ^That has been done to the very highest extent by the Crown Reef Company. *"®'^''

Mr. Smit

Has your company ever participated in any effort to import white labour ? — ^No,
not to my knowledge.

Mr. Joubert.

Is there any complaint about the quality of the dynamite made in this country ? Quality of dyn
—Not that I have heard of. Not in my mine. °** **

Mr. S. J. Jennings* Evidence.

Jf r. Sydney Jen-
ning'i evi-
dence.

Pan Law.

Liquor Law.

HhtAre

CoaL

I>ynamlte.

Mb. Sydney J. Jennings, General Manager of the Crown Reef Gold Mining
Company, stated he had been General Manager of the Company since the Ist
September, 1896. Before then he was manager of the Crown Deep and Lang-
laagte Deep.

ChaiTTna/ifi,

Witness], It seems to me the three chief points which affect the mines which are
not on the verge of paying dividends are these. The first is native wages. We have here
a most excellent law, in my opinion — ^namely the Pass Law — ^which, if properly carried
out, and efficiently administered, will enable us to get complete control over our kaffir
labourers The Pass Law, as it is carried out at present, does not give any satisfaction.
From the Crown Reef, where I am manager, no fewer than 1,030 kaffirs deserted since
the 1st June, 1896, and it is impossible for us to trace these kaffirs. If we take a
native to the Pass Office, and asK whether he has ever been registered before, it is
impossible for the officials to give us any information. If every kaffir could be traced ;
if it could be told whether they have been registered before, or been in the service of
a company, then we would have control over them. We can get kaffirs here from other
places on a contract for twelve months, but they work for only two weeks and then
leave, and it is impossible for us to find them. We have another law, which is a very

food one, viz., the Liquor Law. When this law was first enforced, in January and
'ebruary, we receivea great benefit from it, in that the kaffirs were never drunk, or
suffering from the effects of drink, and consequently worked their full week, and did
better work than at the present time. The Liquor Law is not enforced now, or the
keepers of eating-houses, or dealers in drink think it will not be enforced, consequently
the kaffirs now get, freely and openly, drink of the most vile compounds, and this
makes them so that they cannot work as well as before. I have a list here which
shows that the total sum paid in wages to kaffirs at the Crown Reef during 1896,
amoxmts to £63,902, 6s. Id., and this is about 24 percent, of the total costs of the work.
Then the cost of supplying the kaffirs with food was £12,503 for the same year, and this
is nearly Is. 3d. per ton, or 4 J per cent of the total cost. Therefore, the native labour and
native food amounted to 2s. lOd. per shift. If the Pass Law were properly and efficiently
administered, and the Liquor Law likewise, we could reduce this to Is. 6d. per shift.
Again, if we had complete control over the native labour, we could teach the kaffirs to
do all lower forms of work that are now done by white men. By these reductions
other mines would be brought into operation, and more white men of greater skill
would come into the country. The lower classes of labour, mostly unskilled,
would be done by kaffirs. This would be a permanent benefit to the country in many
directions. You would have more mines at work ; you would cause more goods to be
carried over the railroad, and the man who had invested his money in the mines would
receive greater dividends. The second point is the cost of coal. The Crown Reef paid
last year £25,909, 14s., which amounts to 2s. 7 Jd. per ton. I am informed that we pay
an average of 19s. per ton for coal I am informed, but I don't know it of my own
knowledge, that of that amount 9s. is carriage, or not quite one half. Therefore, if the
carriage is reduced to a figure at which a great many think it possible to carry coal, it
should be reduced by 6s. per ton, or, on our expenses, about one-third of our coal bill, or
lOd. per ton working costs. The third point is dynamite. The Crown Reef spent on
djmamite last year £24,225, which amounts to 2s. 6d. per ton, or 9 per cent of the total
cost. Having had considerable experience in dynamite, I should say that dynamite

Mr. S. J. Jennings' Evidence. 45

can be delivered here, exclusive of duty, at 36s. per case. The Crown Reef uses

blasting gelatine, for which it pays £5 98. 3d. per case, delivered on the mine. If we

grant the dynamite should pay even a lar^e duty, we should at least get it for half

the amount we get it at now, which woula mean a saving of about Is. 2d. per ton at

the Crown Reef. The other items of expenditure on the Crown Reef are made up of Mining awts.

cyBnide, and what might be called general stores, such as candles, steel, oils, pipes, and

pipe fittings, fuses, and detonators. These all pay railway carriage, which, in my

opinion, is very high, but of which I have no accurate statistics to give the Committee.

With regard to white labour, the salaries on the Crown Reef include directors* fees,

manager, consulting engineer, secretary, and every other white man working on the salaries oi

mine, came to £77,222, or 29 per cent, of the total cost. This amounts to Whites.

£24 la lOd. per month per man. In my opinion, unless a great reduction is

made in the cost of living, it is impossible to reduce that amount, it seems to me that

the policy should be to open up and make it possible for a great many more mines to

pay, so that we should be able to use more white labour of the very highest skill, to ^iiite wagw.

whom it would be cheap to pay a high wage. I would like to hand in this statement,

so that the Commission will have accurate statistics so far as the Crown Reef is

ooncemed.

Cliairman,

What is the dividend paid by the Crown Reef? — We paid 140 per cent, on our Dividends c
capital, and in that connection I would like to make a statement. The capital of the ^"*^ ^^^'^
Crown Reef is only £120,000. The total expenses of equipping and developing the c*giuiofCrow
mine in such a way that it is possible to pay dividends, was £480,000 odd. Therefore,
the 140 per cent, dividend on £120,000 capital is only about 36 per cent, on the money
spent in equipping it.

As regards kaffir labour, there is no difficulty in getting a sufficient supply ? — supply of nati^
There is no difficulty if we can keep those we get. "'•

Your remedy for that is that tne Liquor Law be properly carried out, and also the
Pass Law ? — Yes.

As regards white labour, have you any difficulty in getting skilled white labour ? ® gjju^^^^hf
— It is very difficult to get skilled white labour. labour.

Have you had any occasion to dismiss white labourers lately ? — Yes.

Can you tell us how many and why ? — About four or five, who have got sick or
gone home, or wanted to go home to England.

Have you got any great trouble about stealing amalgam ? — Not to my know-
ledge.

Is there any general complaint about I.G.B. ? — Yes, the complaint is very great, gow thefts.
It has been shown in the case of the City and Suburban that an organised gang of
thieves has been at work, which, in that case, stole a large quantity of amalgam, and
it is fair to assume that that is not the only company.

Is it not possible to improve the labour conditions by importing better machinery ? improved muci
— That has been done to the very highest extent by the Crown Reef Company. *"*"^' *

Mr. Srait.

Has your company ever participated in any effort to import white labour ? — No,
not to my knowledge.

Mr. Joubert,

Is there any complaint about the quality of the djmamite made in this country ? Quality of dyn
—Not that I have heard of. Not in my mine. "* *'

46 Mr. S. J. JenningsV Evidence.

You work with dynamite ? — We do not use dynamite at alL We use blasting
gelatine.

Is it also manufactured here ? — That I do not know.

Do you know where you get it from ? — We buy it from the Explosives Company.

You have worked with different kinds of dynamite before in other countries. Is
there any appreciable difference between these and that you work with now ? — There
is a large difference in the effect of blasting gelatine and dynamite.

You have worked with gelatine in different countries, you say. Is there any
difference in the quality of the stuff you used there and the stuff you use here ? — No.

Mr. Schmitz-Dumont

^Xd °'d™*'' ^^ 7^^ think that an unmarried miner gets a wage which enables him to live
married min- vcry Well ? — He gcts a wagc that if he is reauy single, that is living here without a
*"• wife, enables him to live well.

And how about the married miner ? — It is very difficult for him to make both
ends meet.

You have a lot of experience of the compound system in Kimberley ? — ^Yes.
<3omp<mnd ays- Would you think it would be advisable to apply the same here ? — Taking all
**"*• considerations, the commercial community and the good of the land into consideration,

I should say no. We could get sufficient control over the kaffirs if the Pass Law was
efficiently administered, without the compound system.
Native locations. And how about establishing kaffir locations along the Rand ? — I say it would be a
most excellent idea if the sale of liquor in the locations was absolutely prohibited, and
no licences were allowed for the sale of ^anything for a long distance round, so that
there would be no possibility or pretext whatever of introducing drink.
I think you have experience of mining in America ? — Yes.
<3o8t <rf dyna- Can you tell us the cost of dynamite there ? — In the Alaska Treadwell and Alaska
Sa. " ^^^ Mexican mines, which are very large concerns, the dynamite costs 16'3 cents per lb.
(about 7 id. per lb.) That would amount to about 268. per case.

Is that a quality which equals No. 1 sold here at 85s. ? — That equals No. 1 sold
here at 85s.

You mean to say it has the same power ? — It has the same power.

Mr. Brochon,

w^ee of un- You think a single man can live very well here with the salary he gets ; can you

en. ™ °" tell us what he has to pay for his board and lodging ? — It all depends on where he

lodges. The average board on the mine is £5 lOs. per month, I should say, but most

of the mines furnish skilled men with quarters free, although some charge 10s. per

month.

Is that all the expense ? — He would have to clothe himself and he would have to
have some amusement I suppose.

His salary we will take as your average, for the miner it will be about £20. You
told us he paid £5 10s. for his board and lOs. for lodging, that makes £6. That leaves
him £14 out of which he has to pay for clothea How much do you think that might
be ? — I would think about £5 per month. I am merely estimating how much, but of
course a miner could tell you with more accuracy than I could.

How much do you think he saves a month ? — I should say about eight or nine
pounds,
witfes of mai« When a man is married the mines do not give him free lodging ? — No, not as a

ifed miner.. ^^^

So he has naturally large expenses ? — ^Yes.

Mr. J. P. Fitzpatrick's Evidence. 47

How much do you think he has to pay ? — About £3 or £4 per month for three
Tooms and a kitchen.

And food for himself and his family, how much would that be ? — Well, it would
■depend upon how many children he has, and how good a manager his wife is. I should
«ay about £11 or £12 per month.

So a married man has very little to save ? — He has nothing, I should say. Margin tor lav.

That is if he has only £20. *"*'•

Mr. Jennings was thanked by the Chairman.

Mr. James Pebct Fitzpatrick, the next witness called, said that he was an Mr. Fitsp^trick's
employ^ of Messrs. Eckstein & Co. evidence.

Chairman.

By this time you know what are the objects of the Commission, and that it has
been the rule for witnesses first to give their statement of the case and then to answer
^Loy questiona — Tes. I have not written a statement but I shall deal with the whole
subject.

How long have you been in Johannesburg ? — I have been in Johannesburg con-
tinaously for the last five year&

Ana before that ? — ^I was away for a little time. I was several years in Barberton,
and prior to that at Pilgrim's Rest and Lydenburg. I have been in the country since
1884. In order to make the position clear, I would like to follow on the lines taken by
other witnesses, going first into the working costs of the company.

If you have perused the other evidence which has been given, you will understand
that it will not be necessary to repeat it. If .you can confirm what Mr. Albu or what
Mr. Hay has stated you may just simply say so. — It was my intention to take the
Afferent items, and, where possible, to say simply that I endorse the statements made,
and where I think the statements cure not sufficiently full to give other details. I take
the proportion of mining costs to be as follows : — White labour, 28 per cent, of the Peroenu^ee oi
total ; black labour, 23 per cent; explosives, 10 per cent.; and coal, 8 per cent.; these ^°*^»^ "*»•■•
are the principal itema The 81 per cent, remaining is made up of materials, office
expenses, chemicals, and many other little outlays, which, I think, the professional Reduction of
witnesses will deal with in detail The white labour, making up 28 per cent., I don't noi^noy!'^
think it would be possible to reduce much at present, and I think that the reason is that J^g\ oTuJ&j?*^
the cost of living for the white miner is very high. I know that the wages are in
&vour of the single man — that is, that the single man can save money, whereas the
man with a wife and two children cannot. In order to deal with the question.

I have got an estimate from two men whom I believe to be thoroughly honest I take Averajre daily
it this way. The average day of a white miner is 16s. or 208. a shift. * miSIr.**' "^^^^

Mr. Hugo,

How many working hours ? — Eieht hours. According to one estimate I find Average number
that, all detidls being given, the cost of living for a white married miner amount to hou« per Ijuly
£18 17a 6d. per month. That makes no allowance for life insurance, education of of white miner
children, smoKing, drink, amusements, native servant, newspapers, books, or cost of u^i^orwhite
coming to this country. That is for a man with a wife and two children coming "^'*"** "*"*'
from England. Food and clothes, you will see, come to nearly double, and house- comparative
rent to five times what they pay in Europe. In face of these conditions, most married S?EngiLndiSS
men leave their wives and families in England and on the C!ontinent ; and, although F^SSini^oi

they may appear to be savmg money, this is not the case, as tney have to continuously ^^ miners of-
remit money to their wives. Another estimate brings out the cost at £20. I think **° Europe.

48 Mr. J. P. Fitzpatrlck's Evidence.

that practical miners would be able to throw more light upon the subject, and they

will be here to give you information. With that I will leave the white labour question.

Native labour. As regards the black labour, an arrangement was come to last week, whereby

30 per cent re- it was agreed to i-educe the black labour by 30 per cent. We have a considerable^

Sv?^Ii2."*" number of kaffirs here just at present, and I think the reduction can be accomplished,

B"u^r^' I consider that the cause of the number of kaffirs being here just now is largely due

Present

to the bad times, and to the closing down of certain mines. I hope that we shall be

able to maintain the supply, but unless we get that help in the proper carrying out of

the Pass Law, the Liquor Law, and get those general facilities the Government is.

able to give, I am afraid we shall have again a shortness, and that we shall suffer.

Pass Law. About thc Pass Law, others have already spoken. I can only say that it is a very

^tthl^iSjmS^ good law badly carried out. Of course, it is a difficult law, but what we wish to point

i)eKrtf*°" ^*^* ^^^ ^®» ^^^^ ^^^ points that we had in view, such as desertion, are exactly the points.

on which the law has failed. For instance, the Robinson Company, since the law haa

been brought into operation, had over 1,600 boys desert from their service, and not a

single one had been re-captured. I will leave the Pass Law now, as I do not think there

is very much more to say, and other witnesses will speak on the point, so that I will

not take up your time unnecessarily.

TheUquorLaw. The uext thing is the Liquor Law, because it is in connection with the kaffir

labour question. 1 have here numerous complaints sent in by the various C!ompanies

regarding drunkenness amongst the kaffirs, which I will hand in if you like.

The Chairman,

luicit Bale of li- Ycs, plcasc, let US havc them. — The Jumpers advise that the sale of liquor to-

c«*Miue "'"^ natives was going on in the most barefaced manner out there, and gangs of boys were^
Inefficiency of being Continually met in a helpless state of intoxication, and so far the detectives had
iiud^wli^of li- done nothing. The New Heriot advised in the same way, and the Robinson Gold
fferiottodR^ Mining Company wrote exactly similar. They say that the kaffirs have little diffi-
biMon mines, culty in obtaining liquor from the canteens and illicit hawkers, and unless steps are^
taken to put down this trade, they will lose all the advantages they thought they
illicit sale of li- would gain by the law. I have been favoured by the Consolidated Investment
$ie*^tfont^^in Company with a statement from the Rietfontein Company of what goes on there.
Mine. They say that native labour is plentiful, but the sale of liquor is in full swing. They

have reported the fact to the Landdrost, but no relief had been afforded. Mr. IJ^.
Illicit aaie of li- Roos, of the Worcester Company, writes that nothing has been done to check the
2Mter*Mine?' illicit Sale of liquor, which is more rampant than ever. Boys can be seen in squads-
drunk, and carrying liquor openly through the streets. On the 8th of March, 300 of
our boys were diimk and incapable, and the liquor was mostly supplied by the bars.
'^uor"*at**'the ^^^ Good Luck Bar, situated next to the Robinson G. M. Co., is notorious, and this.
iobinaonMine can be Said directly of nearly all the bars in the vicinity, and indirectly of the kaffir
eating-houses. I think the Sanitary Board should take the matter in hand, and
lUicit sale of li- licence the eating-houses so as to get them under control. While they are allowed
eaSnghouSfs' to carrv ou this nefarious business, it will be hopeless for us to come out satisfactorily
in our Kaffir labour.
i^jg^o^Mn de Mr. De Roos also says that he has written to Commandant Van Dam on the
mandant van subjcct. The letter to Commandant Van Dam names certain bars here. The Wilt*
ing*"imcS^e shire Bar, just below the Ferreira, the Princess Bar, near our mine, do a roaring trade.
ofiiquor. « There are kaffir eating-houses in the neighbourhood, and most of them sell liquor ;.
one in particular near the Oliver Mill, on the Booysen's road, is doing an extensive
illicit business. And so are the bars at Ophirton. I shall be pleased to give any
assistance in trapping the offenders, but I think it will be better to employ your owik

Mr. J. P« Fitzpatrick^s Evidence* 49

traps. However, just as you please. I confidently hope you will give this matter
your serious and early attention, as our work is greatly hindered by the drunkenness
of the natives,"

The Minerva Company also writes to say that although the boys do not get "^^op^ jj£^^;
drunk on this property, they appear to have discovered that it is obtainable in nMbu^.
Johannesburg, and at the end of the week they clear out in considerable numbers to
that place, notwithstanding the Pass Law, and that it is in a different district. " On
Monday morning I was forty of my hammer boys short from this causa"

There is a letter from the Wolhuter Company complaining of the same : — ** Illicit ^u*,*^® %^l
Hqaor traffic has been prevalent on our property, and interferes with native labour." buter Mine.

There is one also from the City and Suburban, but it is followed up by the state- "^u*p"^J **i|t
ment that the police have taken up the case complained of, and have closed the ^d'^suburban
Grahamstown Bar. I think I have said enough regarding the Liquor Law. ciSure of o»-

I come now to the question of gold thefts — LQ.B. I don't think I need take up by"th^^i&
the time of the Commission very long. I think the case just finished exemplifies ooid thefts.
&irly well the difficulties we have to deal with. I don't feel justified in making any
estimate as to the quantity of gold stolen, because I haven't the least indication to go Amount of gold
upon, and I don't think it possible to make an estimate. It may be one per cent, and 2bil"to°«S-
it may be 10 per cent. But it is a perfect certainty that there is I.Q.B. going; on. It °^**-
is notorious that there are a number of persons nominally engaged in the watchmaking
and jewellery business, but who are doing a much better business than their capital
and apparent energy warrant. They sit still all day, and yet prosper exceedingly.
The President of the Chamber of Mines, I may say, has received letters on the subject
repeatedly, but, of course, such letters do not give absolute evidence. We do the best
we can, but there are very serious difficulties in the way of detection. In the City i>ifflc\Jty of d^
and Suburban case, just tried in the Circuit Court, we were told beforehand that there thefSf *°
was practically no fear of a conviction, because the operators had arranged matters.
I don't mean that they had arranged with the higher officials ; but that they said they
were in with the police. I cannot tell you if that was true or not ; I only give you AiieKedooUusion
what they said ; but in view of the developments of the case, I think they were citr«nd^S
justified in their boast. It seems hard when private individuals do all the work, J^/^ ^^^
roend their money, and even risk their lives, as I think the Battery Manager of the ^^^^^^^wSe^^V-
City and Suburban has risked his life, in order to supplement the work of the son^whoawSt
department, to find that all their labour has been thrown away. It is very, very deLjffn^w
discouraging. Now, in these three matters, the Pass Law, the Liquor Law, and the ^^®'^-
Id thefts, the suggestion has been made that the Government should constitute a Local Board re-
al board — some £)ard or permanent Commission in which you could enlist the SSSJr "nte*
intelligence, the interests, and the energies of the people who desire to protect them- foJ«imin£t»*
sdves. There is absolutely no ide«^ of assuming any part of the duty or to trench upon JjSJ^^'^"
the privileges of Government in this suggestion ; but we do think that where our Pass aSci u*
interests are so much concerned, and where it is our business to understand every §ow thS§r™*
detaO, 'we could do good work in carrying out the laws which the Government has
given us. And I would like to say that the Pass Law and the Liquor Law are very p«m» and uqm
good laws, only they want good administration. I don't think that there is any other \l^ 'but the
question in this but that of good administration. I put it to you this way. If you »^jjjjJ«t™t*o»»
want a house built, you employ a mason ; and when you want an industry properly
managed which calls for the highest training and intelligence, I think the abilities of
the people ought to be made use of, and I tnink it would help the Government quite
as much as it would help us. I must make one other allusion here to the Pass Law ;
and that is that the Pass Law is very complicated. By it a department was created ^Pj^^^^f °*
which really requires at its head a man with a great capacity for organisation and

50 Mr. J. P. Fltzpatrlck^s Evidence.

management, a man with plenty of tact and judraient. When we made the
Inefficiency of sug^estion of this Fass Law, we did hope that we should have a really competent man
^^^w eld^ at the head of its administration, but the appointment was filled up and these hopes
ministrution. were uot realised. Well, gentlemen, if you should be able to recommend to Govem-
Abie men re- ment the establishment of such a board as has been suggested I do hope that you will
gukg for local ^j^^ |^ ^y^ ^ rccommcnd the appointment of men who will secure good adminis-
tration. The best of laws is no good to us if it' is not carried out properly.
Dynamite. Next I come to the dynamite question. The position of the dynamite question

^^oSSonT- Re- ^pP^*™ to US to bc exccedmgly simple. A certain concession was granted. A Raad
portofEaad- (jommissiou reported to the Government that its terms were not being carried out.
oom^^on onTjjg Government have the right to cancel that concession, and we ask them to
oo^wnment re- exercisc their right. We put it to the Government that it is not only their right to
oei dynamite cauccl it, but that it is evcu good policy and also their clear duty to do so. Going
oonoeflBion. ^^^ ^j^^ figures in connection with dynamite and the railway, I would like to point
DiiBcuity of pro- out to you ouc of our difficulties. The onus is thrown on ua of showing what these
mUdeeST^i two Toonopolies are doing. With infinite difficulty we get hold of many of the
tS^^mm- ^^^^^^- There may be trifling inaccuracies, but we know that we have got at the
opoiiffts. principle of it We know that the representatives of the monopolies will have an
opportunity of criticising the evidence we gWe, and it is quite right that they should.
But they will speak with an intimate knowledge, and we can only quote what
we have discovered by our energies in the face of every obstacle and diMcvlty
deliberately placed in our way. Why I thinK this is a wrong position is because
^ment'to^de- G^^^^^^*'^^''''^^^ ^^*^ ^^ right to coU uvon- the two monopolies to expose the whole of their
mandafiiiiac- busincss to the fuU light of pvhl%c cHticism, Government can compel the dynamite
Stuinew from ageuts to show how much dynamite they are making (if indeed they are making any
nSJ^'^'nloU! ^ ^^^)» what the materials cost them, and what the dynamite, blasting gelatine, or
opouste. whatever it is, actually costs them free on board at Hamburg ; and whether, when
they say it costs them 40a, it is not a fact that Nobel makes it at 18s. 6d. in
Hamburg and charges Nobel in Johannesburg 40s. for it, and calls that the cost price.
Now it is in the power of the Oovemment to make them produce that evidence. I
Nobel's ofTer to must remind you that when Nobel was fighting Mr. Lippert and trying to get a
hSt in^bond'it market for his goods, he offered to sell — bound himself in wet to sell — down to 40a a
iuol^^r^ ^5®*®> ^^^ reserved to himself the right to sell under 40s. ; and I don't think he would
p«i^ ordyni^ havc rescrvcd that right, if he could not have done it with advantage. That price
comhTence^ was for dynamite in bond in Johannesburg without the duty. And I will tell you
^' tose*^n why he could do it. At the beginning of this year, dynamite was selling free on
bo^atHam- board at Hamburg at £43 per ton, which is equal to 21s. 6d. a case. Ocean freight is
Charges on dy- 4s., landing chargcs 6d. a case at Fort Elizabeth, agency 6d., Colonial duty 2a Id.,
SSmburg'^to railage 4s., which brought it up to 32a 7d. a case, and in that price Nobel had made
A^^d^Tnu^'- ^® European profit. I must also in this connection refer to the alleged interview
ilSda^in Sle ^^^ ^^' ^7^ ^^ ^^® Parfs Tcmps.
^ird Chivnmn.

"^**- We want simply local information.

Witness!] I will leave out Dr. Leyds then, and put it this way. A statement

has been made then in a foreign newspaper that the Chamber of Mines was ready

"^^l^ntnStbe- ^^^^ ycars ago to enter into a contract with Nobel for 16 years for the delivery

tween Cham- of dynamite at 90s. per case. That is perfectly true, and the explanation is this : that

iSdNoberi^or whercas Mr. Lippert was selling us dynamite at 90s., and the Government was only

&Mr*caM!^ getting 5a, Mr. Nobel was going to sell us dynamite at 52a, and the Government wer^

going to get 38s., and if the contract had been made, the Government would have

Mr. J. P, Fitzpatrick'8 Evidence* 51

made about £1,200,000 in duty during the past four years instead of, say, £150,000.
If these figures are too vague I will undertake that the Chamber of Mines will give
you the exact calculations, within a few pounds. I think it is a very great pity that
statements like that should be made without quoting the facts which put the truthful
^complexion on them.

Mr. de Beer.

You have introduced a statement which the Commission know nothing of. They
have no evidence of it, and the Commission would not be influenced by a newspaper
-statement, but only by evidence. — I do not mean to insinuate that the Commission
would be influenced by this information, but we should have the right to refute
jk misstatement. Now, in looking at the dynamite, and also at other things, I do not
think it is right to calculate, as an argument to the Government, how much the
cancellation of the monopoly would benefit ua I go back to the point that the
Government have certain rights and duties. I do not suggest to the Government to fsUuk of con-
ignore anybody else's rights, no matter how obtained, but these people have also al^^oat*^.
^ettain responsibilitiea They have failed to carry out these responsibilities, and the ^t^ ^^^'
Government have the right to cancel that monopoly. We only ask them to exercise ^'Sent'to^™!
that right. I think we might ask that of them, even if it did not benefit us at all, dynamite coo-
tmt just fairly to hold people to their contract There is a great deal of ancient b^^ to oov-
history in the dynamite question which would be interesting to the Commission, but I IJSk iiirhfc*oi
think we can safely deal with it simply as a fact It is not necessary now to go into canoeiiaaon.
the question of how the dynamite monopoly was created. I would luther deal with
the practical question.

Chavrman.

What the Commission want to know is the cost of dynamite here at present, wiuit is nresent
what price can it be landed at here, and how far this price tor which dynamite can be SJi^. *^°*"
sold would influence the cheaper working of the mines ? — Certainly. I have given How would re-
yoa one set of figures which I think is the most effective, because they are the figures Sr^Symlmite
of the same people when they were playing a different game, and to the best of my JSS"o7min^
belief they represent the price at wnich (^namite monopolists get their dynamite
here. Of course I do not believe that if they attempted to manufacture dynamite mite mwiuSo^
th^ could make it for 328. 7d. In the first place, I believe their raw materials will J.jjj^*"'r»n»-
maKe up about three times as much weight and bulk as the manufactured article, and
in that connection they would suffer from railway charges the same as we do. We
have an offer from an American firm of manufacturers guaranteeing the same
efficiency in the dynamite as that which we call No. 1. I keep No. 1 as a standard.
If we talk about blasting gelatine, all the figures will have to be proportionately
raised. It will prevent confusion to stick to No. 1. We can deliver No. 1 from San
Francisco, of the same quality as obtained here, at 37s. 6d. ; and if we had called for ^i^.namit?**im^-
tenders a fortnight earlier than we did, we could have obtained it at one penny per lb. poS^ ™
cheaper, because lately they decided to increase the price by that much. Had we
obtained it one penny cheaper, it would have reduced the price to 338. 4d. per case,
whereas, as I have said, we now quote 37s. 6d. From an average of the working Averagre percen-
•costs of some of the principal mines, taking the same analysis that I gave you at the ^^o^^iv^ra on
beginning, the cost of explosives to us comes to 2s. lljd. per ton. If we had ^^ent^e^^i
free trade, we would save on explosives alone. Is. 9d. per ton on the working costs, J^°^*"» ^^
that is assuming that the working cost is 29a 6d. per ton. If the old duty, which we saved i^^uc^
•tgreed to pay some three or four years ago, were put into force on top of the price I {1}^?^.°' ^^'
have quoted, the Government would make about £500,000 sterling per annum instead ^™^,jS^J^f
-of about £W,OO0l I think the duty we undertook to pay was 8 Jo. per lb, together inar to oovem'.

Mr. J. P. Pitzpatrick's Evidence.

ment timmffh
duty on explo-
^▼es f onnerly
agreed to, and
actual duty.

CJoet of djma-
mitemonoDcdy
to Kand Mines
group In 1806.

Coal.

Prioe of ooal at
pit's mouth.

Chaifres on ooal
before deliveiy

Share of Nether-
lands Railway
in ooal charges

More fadlities
remilred for
delivery of ooal

Loss of Nether-
lands Railway
only tempor-
ary by reduc-
tion of ooal
charges.

Delivery prices
of ooal per ton.
possible and
actual.

Probable saving
in percentage
of working
costs by reduc-
tion in price of
ooaL

Total saving in
percentage of
working costs
by re-auction
in coal and dy-
namite.

Value of reduc-
tions on coal
and d.^'namite
in percentages
to certain pay-
ing and non-
paying com-
panies.

with 7 J per cent, ad vcUorem. This duty would oome to about 38a or 408. per case.
I might (U*aw your attention to a statement in the Rand Mines Annual Report, whlcb
illustrates how this comes home to the companies. The dynamite monopoly last year
cost the subsidiary compcmies of the Rand Mines £54,000 for plunder alone. Of
course, it will be considerably more as the companies get fully to work. There was-
only one company actually milling during the time I speak of. Just think over that
illustration.

Mr de Beer.

Do you speak of only one group, namely, the Rand Mines group ? — I am only
speaking of the companies I know well. I am perfectly ready to give the Commission
all names and references. The £54,000 refers to the subsidiary companies of the Rand
Mines. Now, for the next item, I will take you, gentlemen, to coal. Coal costs at the
pit's mouth — ^that is the price at which the companies sell it — about 9s. to Qs. 6d. per
ton. I have taken coal separately, that is apart from the rest of the railway
expenses, because it is a big item in mining expenses, to which we can trace the exact
proportion of working costs. We suggest to the Commission that coal should be*
carried at the lowest possible rate, and that every facility should be given to the*
mining companies for cheap delivery. When we complain that an average of 100 per
cent, is put on coal between the time it leaves the pit mouth and reaches the bimkers
of the mining companies, we do not mean to say that the N.Z. A.S.M. takes all that
money. They impose very heavy tariff and heavy terminal charges, but there are a
great many items of costs which do not profit the N.Z.A.S.M. at all. We want more
facilities, and the Netherlands Company will have to give up a portion of its revenue
for a time, and to foster and encourage the mining companies, and presently by
increased carriage, because of cheaper rates, they will find their revenue brought up
to the present standard. We consiaer that we should have ooal delivered at an average
cost of from 12s. to 13a per ton instead of from 19s. to 20a, which is, so far as we can
ascertain, the present average cost of ooal per ton delivered on the mines. If we had
our carriage reduced to the rate I have suggested, I believe it would be a saving of
about lOd. per ton in our working cost. Now, those two items together, dynamite and
coal, if reduced, would make a total saving in the working expenses of about 2a 7d.
per ton. The question has been discussed as to whether in the event of the dynamite
and coal being reduced, companies could work at a profit — that is an. increased profit
for those companies now working, and the difference between profit and loss to those
companies wno are not working or are about to shut down. In my opinion, this
saving of 2s. 7d., which, with the factions will be 2s. 8d., in the working expenses will
not make much difference, for we have to go further into matters and not deal with
the mere questions of dynamite and coal, and for that reason I will give the Commission
more figures on other points. But, before proceeding to go into other matters, I will
give you an idea of what difference that 2a 8d. would mean to certain companies..
There is a long list of them, which I hand you.

Company.

Crown Reef
Durban Roodepoort
Ferreira
Ginsberg
Henry Nourse

Tons crushed in
1896.

198,236

109,735

120,772

21,529

92,143

Issued Capital
000 omitted.

120

125

152i
125

Additional Dividend

possible in the case

of a reduction in

the working oosts

per ton of

2s. 8d.

21-98

12-00

17-32

1-74

9-32

No. of months
crushing*

12
12
12
12
12

Mr. J. P. Fitzpatrick*8 Evidence.

AddiUonal Dividend
poMiUe in the oaaa
1 of a reduction in 1

Oompftny.

Tons oruflhed in

iMraed Capital
000 omitted.

Yo.ofniontfai

1S96.

the working ooetf

cniihinf*

•

per ton of

2s. 8d.

Johannesburg Pioneer

33,194

21-32 ...

New Heriot

92,799

... 112

10*66

Nigel

27,449

... 200

2*66

Princess

42,339

... 165

... v'OO ...

Robinson

... 177,500

... 2,750

... *oo ...

Simmer <fe Jack

156,930

... 4,700

-45

Wemmer

74,945

12-48

Worcester

43,293

... 937

6-16

Champ d'Or

55,808

... 128^

... t/f«7 •.•

City & Suburban

... 202,850

... 1,360

2*66

Oeldenhuis Estate

... 178,439

... 200

... 12-00 ...

"Geldenhuis Main Beef

35,018

... 150

... <>*V/9 ..•

-George Goch

... 103,515

... 325

4-16

Glencaim

87,275

... 225

6-90 ...

Jubilee

59,880

... 12-40 ...

Jumpers

... 108,720

... 100

.. 14-66 ...

Block B

92,773

... 632

... I't/Y ...

Langlaagte Estate

... 236,229

... 470

6-69

Langlaagte Royal

83,689

... 180

10-59 ...

May

... 130,050

... 275

6-67 ...

Meyer <fe Charlton

... '101,397

... 12-40 ...

Minerva

27,643

... 200

... 2»n ...

New Chimes

42,451

... 100

... 0,uo ...

New Primrose

... 268,428

... 280

... LO'oo ...

New Rietfontein

42,347

... 270

2-08 ...

Salisbury

58,257

... 100

... i'Ov ...

Stanhope

19,300

8-82 ...

United Mcun Reef

87,226

... 150

7-36 ...

"Van Ryn

53,916

... 170

... it'^Tt ...

VVolhuter

... 139,273

835

... S*a\. ...

Xleinfontein

7,132

... 185

304

Porges Randfontein

21,763

... 4371

1-60

Bonanza

19,652

... 200

2-92 ...

Oeldenhuis Deep

... 144,059

... 280

6-85

Tjanglaagte Star

... ^UfOoo

... 240

2-67

New Comet

44,844

... 225

400 ...

New Croesus

69,289

... 500

2-21

New Midas

19,083

... 150

... 2*88 ...

Modderfontein

60,000

... 900

1-69

Roodepoort (Kimberley)

23,551

... 125

... o'to ...

Roodepoort Deep

39,445

... 180

... t5*0U ...

Treasury

55,228

... 540

1-81

Total ... 3,938,928.

Two or three other companies crushed small quantities in 1896, bringing the total ore
crashed to 4^000,000 tons.

*AI1 dividends are reckoned on twelve months' milUng.

Many of the companies on the list pay no dividends at all at present. Wh^n I say
in one breath what increase of dividends the saving would mean tor the company, and
in the next that it is not enough, the explanation is this : — Where in this list a great

54 Mr. J. P. Fitzpatrick's Evidence.

dividend is shewn it means that the company has a small capital, and the shares are at

high premiums, so that the dividend on the capital is nominally big. The result to the-

sharenolders is not nearly so larse as you would imagine at first sight, judging by the

figurea The unalterable bedrock fact is that the two items I mentioned wo^d meaa

a saving to the companies of 2s. 8d. per ton on their working expensea

Bidiwaymtes. The uext item bearing on the cost is the railway charges. I would like to take the^

Netherlands Railway, first dealing with the rates, then referring to classification and

^^Jfy*^®" the want of facilities, and then the profits. I have to refer again, first of all, to the

OompiurisoQ of tariff ou coal : I take the Geldenhuis Deep. The transport on coal, including the charges,.

S^SldbRaiT is 3 j^d. It is a little over the 3^d., the figures being 3'58d. per ton per mile, on the top*

JJJ,^ ^ of which there is a charge of 1 per cent, for keeping acccounts. The rate in Elngland over

o^^^huis an equal distance on the Barry Kail way is a little over Jd. a ton per mile, so that if the

^n per *i£ie English charges had prevailed inste€ul of the Netherlands' charges, it would have made a

SSSiway * ooS difference of 6s 8Jd. per ton of coal,or nearly Is. per ton on the ore milled by theCompany..

freight The Commission will remember that that is a little bit higher than the average of all the

companies. That would have paid 2 J per cent, dividend on the capital of the Company.

The exact figures are, from the Cassel Collieries to the Geldenhms Deep, 7s. SJd. The

same distance carried under the same conditions in South Wales is charged at Is. 9d.

The N.Z.A.S.M. chsurge per mile is 3id. per ton, and the other is about fd. The actual

cost of carrying the coal cannot be more than ^d. per ton per mile, and it is a fact that

B^Jw^njg on under the agreement between the Free State and the Cape Colony they carry the coal

departmental for departmental purposes at ojie-seventh of a penny per ton per mile, which the Cape

Snmge* FiiS Colouy and the Free State consider to be just about cost price. I don't want to tate-

sujtoandoape ^p ^]j^q ^iu^^ ^f i}^q Commissiou with a great number of instances in connection with

NetherUndg the ratcs ; but I will quote one — about the worst — the rough goods rate from Vereeni-

ror^o u™ h ging to Johannesburg, which, I believe, for the distance and conditions, is absolutely a

vSwJnigi^to world's rccord. It is 7'7d. per ton per mile. That includes, I think, the cost of lading.

EauS*"of^cSS ^^^ Cape rate for the same class is IJ per ton per mile. The Free State rate is the^

Railway iSr Same as that of the Cape Colony. The Natal rate is very nearly 2d. The Portuguese-

ng'e^ie rate is 2id. The Z.A.S.M. rate from Natal is 3id.,and the Z.A.S.M. rate from Delagoa

S!d*PortI»u- "'^^y ^® ^i^' ^^ *'^^^ ^^® highest rate charged anywhere else, even by the Z.A.S.M., is^

eeo rates, and not half the rate from Vereeniginff to Johannesburg. I wish to lay a great deal of

ro
Ora

Netherlands

Railway mtea strcss ou that fact, bocausc that little distance should bring down the ratea

D^S^^^Bay tremcudously. What is so curious about that tariff, is that, if you load up a thing at

for rough Verecniging, and bring it on to Johannesburg, when they have double terminals, the

Comparison of ratcs are from 3d. up to 6d., but when they have no trouble and a through rate, the

teraSnai rai^ Carriage is 7fd. It really comes down to this, that the Netherlands Company do about

£S"to^£ln^ from six to seven per cent, of the work, and they take from 24 to 25 per cent, of the

nesburK.' moucy. If they would charge the same rates as the Cape Colony, the through rates

from the Cape ports would be reduced by 18 per cent, straight away. To quote one

or two samples of how the heavy rates work out, I may say they tell most on timber.

^^^DetaKoa "^^ article that the tariff tells next heavily on is machinery, so that it presses and

Bav on tij^r tclls morc ou the equipment of a company than on the actual working cost. I will

Eli^SSSTo/JS give you a few examples of importations from the Baltic and America. I will give you

equipment. Qj^q prime cost and the railage from Delagoa Bay, showing the comparison between the

cost and the railage, which you will see supports my contentions as to the excessive

rates. We will take pitch pine. The prime cost of a consignment was £1,722. The

^ft^nJ* DeJiSa railage amounted to £7,234. Oregon pine, prime cost £2,988 ; railage from Delagoa

SSite^f"^.' Bav £14,500. Baltic deals cost £2,679 ; railage £4,170. Galvanized iron cost £253 ;.

vanised iron, railage £210. I will give you some instances where the difference is smaller. Sheet

^^and j^^ £g^ ^Q^ . railage £40. Cotton waste, prime cost £92 ; railage £32 15a. Candlea

Mr J. P. Fitzpatrick's Evidence. 55

(very largely used on the mines) £1,337 ; railage £313. There are others, but I will

hand in the statement to the Commission if they like. Those figures are American.

There is another statement showing the cost of Australian material* On a first cost of ^°^?S[lrco8t8

£1,855, the railage from Durban was £4,100. The expense is considerably added to by J^a/*" ^on

wrong classification. For instance, steel plates and angle iron, taking one particular Australian

lot, were charged exactly the same rate as a steam regulator, which is a very delicate wron^ciaaaiflca-

instrument, and which only weighs 400-lbs. The steel plates are only worth 10s. 7d. tion of goods.

per lOO-lbs. and the other is worth £7 16s. per 100-lbs., yet they are charged at the

same rate. Another thing is that there is no allowance made for large lots. The same no allowance

rate, for instance, is charged for 300-lbs. of rails as for 30 tons, but there is no doubt it ^® JSaSSi

is more economical for the Compcmy to handle them in one lot than in 20 lots. Now J^'j^jJ^Uij^^

tiiere are other charges which we consider unnecessary charges and particularly heavy. Railway.

Many of these charges come in and they do not show in the rate. They add to our ^iSSlbie^c'^

eosts, and we never see it in the rate. For instance, at the Geldenhuis Deep, 4s. a 5S<u*i2i^iway^

tmck is charged for bringing the trucks and taking them away. In other coimtries it

is done for less than Is. But here there is an additional charge of 3s. 4d. to 6s. 8d. per

truck for shunting, and that is not charged anywhere else at home. There is anotner

thing. The Jumpers Company buys coal, and they are charged the full rate into

Johannesburg, which is Is. 3d. per ton more than they ought to pay for the distance.

The only reason for it is that there is no official station at the Jumpers. I do not know

what an official station is, but although they deliver at this un-official station direct,

they charge for a journey to Johannesburg and back, which is never made. The

Jumpers station is therefore official on the down journey, but un-official on the up.

Then a very curious thing is that the Z.A.S.M. charges the coal companies one per cent.

for keeping their accounto. It is generally considered the duty of every man to keep

his own accounta Another irritating and vexatious tax — one which adds up very much

in the costs — is this. The Railway Company allows two hours for the on-loading of Fine for delay in

tzneks at a siding, after which they impose a fine of Id. per axle per hour. I can only sSii^.^ **

Sote what is done in England, as I have no American or Continental statistics here.
England they allow 48 hours for off-loading coal without any extra charge, and
even then they do not strictly enforce it. Here the Company never takes the trucks
away after the two hours nor even the same day ; but if the consignees fail to off-load
witlun two hours, they get fined just the same. It pays, you will see, to keep a man
to watch for these things. Now, there doesn't seem to us to be any justification at all
for that.

Mr. De Beer.

Supposing they left a wagon the whole day, would they demand the fine ? —
I cant say that ; but it's a fact that the fine is levied. Of course, I would not know
of it when they failed to charge it. If they leave the trucks through their own fault,
you understand the Z.A.S.M. do not charge us ; but they fine us for the time over two
hours that we neglect to off-load. If we failed by four hours to off-load, they charge
the fine even if they leave the trucks for another 48 hours. Here are a couple of
other instances. The Herman Conglomerate Company sent a truck-load of material
to the Jumpers Deep on March 17. That load is still coming. A substitute lot
was ordered, and took five days to arrive at the Jumpers Deep. Thfe same Company
has an arrangement with the Cassel Coal Company to get eight trucks a week. The
Cassel Company carries out the agreement, but the Railway Company very seldom
brings eight trucks a Week. The trucks accumulate at Elandsfontein, and the Rail-
way Company brings on a train of twenty-four trucks at a time. The consequence
JB^ that the work on the mine is all put out in order to off-load, and the demurrage or

56 Mr« J. P. Pitzpatrick's Evidence*

charge for delay has got to be paid by the Jumpers Deep, because they cannot oflT-
load twenty-four trucks in the time they undertake to off-load eight There are also
some very unaccommodating regulationa I will give you an instance about excess
*?feth*eHandi S^^^' P^^ple Sending large consignments often send a little more than actually
BftUwfty u to appears in the invoice. Sometime an important part of machinery happens to be
exoew goods, j^j^ ^^^ rj^^ Railway Company weighs all that, and charges for what it actually
carries ; but they do not deliver the excess article. I don't say that they keep them
for their own benefit, but they will not give you them, that is all. Now, the question
sidiiigfc of sidings is most important to the Companies, and the delay in obtaining permission

to build them, causes the mines a great deal of trouble. The plans do not in any
way give trouble to the Companies' engineers here, but still one believes that the
plans must be sent to Holland. I do not say that that is so, but the time that lapses
between the day on which they are sent to Pretoria, and the day on which they are
returned, leaves nothing to prevent them being sent to Holland. I will give you an
instance of the vexation Companies have to undergo on the question of sidings. It is
sidingr ®' ^^jj^in connection with the Violet Consolidated Company, a Company with which I am
com^ny. not in any way connected, but the information is correct, given to me by one of the
directors. This Company's mine is situated two miles from Krugersdorp, and eight
miles from Randfontem. They wished to put down a siding, about 1,000 yards long,
at a cost of £900. The plans were approved of by the engineers of the company, but
were refused by the management at rretoria. When asked for a reason, the answer
the company got was, that they could put up a platform along the main line, and the
train would be allowed to stop there twenty minutes in order to off-load. Now, the
company has to put up a battery of 100 stamps, and if one mortar box could be un-
loaded in twenty minutes it would be smart work. So it was simply impossible.
Then the Railway Company said they could put down a siding, but they would hxive
to connect with Krugersdorp Station, two miles distant, instead of connecting where
the line passed the mine, and at a cost, according to their quotations, of £11,600. You
must understand that they wanted to put down a line duplicating their line to
Krugersdorp, besides making the siding proposed their main line. Another difficulty
the mines have to contend with is the fact that we cannot get bottom discharge
trucks. If we did not have to put the coal in bags we should save breaking ; we
should have the coal in bulk, ana it would save handling at both ends, because we
could get the trucks to discharge automatically. The Geldenhuis Deep and the
Automatio^^dis. Jumpers Deep went to a cost of, respectively, £4,000 and £2,600 to carry out this
di^i^wed by arrangement, out they could not get it to work, as the Company refused to provide or
Rjdiway*! *" permit bottom discharge trucks. I will now give you an instance of how the cost of
^biidlSd N ° timber worked out on a mine. In the working shafts the timber has to be in what
thcriaiKfeRAii. are called sets, which cost on the ship £2 4s. each, and on the mine £13 lis. If the
oif^a cor!8wn^ Railway Company charged Id., which is twice the American rates, the sets would
Ametil^n^^nAi- ^ave ouly cost £9 6s., or being a saving per set of £4 5s., or a saving on the sets put in
tinibelJ'slte.^" ^^^ ^^^ shafts on the Ferreira Deep Mine of £2,000, and that only in the timber of
Prime cost and the main shafts. I obtained from a merchant in Johannesburg a statement of the cost
on ITcons?^ of f umiture, which is also a factor in the men's wages. Nine cases of furniture cost
mentof fumi- £gg jQg^ ^^^^ landed here, £128. The railage wiis £17 2s. 2d. ; nine cases of bedsteads
cost £59 13s., and landed here, £138 — ^the railage being £34. Now comes the question
^heriSidSi^n: of *h^ Netherlands Company's profits. They have a capital of £1,666,660.

Wwy.

The Chairman.
We are all acquainted with the figures, and it will not benefit us to hear them

Mr. J. P. FitzpatHck's Evidence. 57

again. It will save time if you pass over that question. It will be a matter for us
lo decide.

Witness,] I cannot get at the possible saving in working cost of the mines unless
I da I will be as brief as possible. I will put it this way. Last year, over and above
the working capital, and the interest on guaranteed loans, the Netherlands Compcuiy
made a profit of £1,330,000, and that on a capital of £1,166,660. This, of course, in- Qovemment
dndes the Government share, which is shown in the Revenue returns at about ^^^ NetK^
.£850,000, but as far as I can see, should have been over £700,000 ; and I say that, by j,^*",^^q^-
keeping up the rates, they are able to, and I think it fair to say that they do force coiony f<^d
Natal and the Cape Colouy to do the same. Last year the colonies made £1,800,000 way^J^tS'to*
more than they ought to have done, allowing 4 per cent, on their capitals — that is, getherUndi

_ _ R&ilwsT.

over £3,000,000 was made, and nearly all of it out of us, for although all the profits Proflta ofNatai
do not go -to the N.Z.A.S.M., all the loss comes out of our pockets all the same. In " yi^iSS
consequence of the discussion about the railways and the protests made by the
industry here, there have been some statements made in the Cape and Natal. In this
matter we are entirely dependent upon the goodwill of the Government, because we as Mining industry
a community have no means of compelling neighbouring systems of railways to reduce goSd5rtUofo^<h
rates. It has been stated by the Commissioner of Railways at the Cape that if they ""^JSIJJ®"* „^:
-lost the whole of the through trade they would still make six per cent. Well, I have way rates oi
not got the figures to check that, but they never made five per cent, before they had sutlsl**^" ^
.this through trade, and since they felt the benefit of it they lowered the rates within ^°A*iiw»ys[ ^*^
the Colony, and they built lines which they did not think they were justified in build-
ing when they had to pay for it themselvea So I judge their position is not " all their
fancy paints." They seem at the same time to be willing to reduce rates in a straight- Apoarent wii-
forward and friendly manner, if allowed to do so for our benefit I do not think Cai5°n5iwmy8
anyone can get away from the fact that nine per cent is a monstrous profit to make, ^te^^^vwS,
besides whicSi they have a transit duty which this community has to pay. In con- of oape raii-
neciion with the Natal Railway, there was a statement made by the Commissioner of xiJnStduty.
Public Works, that Natal was not so badly off as people made out, because half their ^ KlauJLy' ^****
tannage was due to the internal trade of Natal. I do not care anything about the
tcmna^, and it doesn't matter, for it depends upon how much you pay per ton. A ton
carried from Durban to Maritzburg earns very little comparatively with a ton carried
from Durban to Charlestown. This is the point Before they had their through con-
nection, their revenue was £366,000. In the year 1896, when they got the through
traffic, their revenue was £996,000, an increase of £630,000. Of this, general
merchandise contributed £284,000, timber £136,000, and imported mealies £99,000.
That is £500,000 out of £600,000. I think they can talk as much as they like about
tonnage, but if they look at the sovereigns — we pay. All the railway systems together toui exceaiive
take about £3,000,000 more than they ought to do. I cannot say that the Transvaal wTy %^^.
trade pays for every bit of that, because we would have to see their books, but it pays ^ b^^un**°?f
for three-quarters of it Every now and then they have meetings of the Commissioners, J^^* "^^^*,I
and the only thing they do is to congratulate each other, except when they propose, as way proutB.
they did the other day in Durban, to increase the rates. Well, considering that this ^oF'iSSi^^S!
community is paying so much of it, we would ask the Government to allow us to make fn^'JJ* oom^
some suggestions at such meetings if nothing else can be done, because it is simply miMionerB of
crushing the business of the place, and Government will feel i}he result of it in the long tems iemand-
Tun as surely as we are feeling it now. I have mentioned those other railways, but ^ent. ^^'""
though they do take a great deal too much, I do not think they are free agents. It ^^jS^SJI^kSi^
has been stated on behalf of the Cape Railways that it is only allowed certain rates on ways by Neth-
the condition that it shall maintain its transit duty. The Cape now say publicly that ^t" m J^to
•they are willing to reduce, but they are prevented by the Netherlands and Natal. J1^I**° ^^^^

58 Mr. J. P. Fitzpatrick's Evidence.

The Natal Government shuffles and smilea And if you look at the rate I quoted froni'

Vereeniging it does look like it. Natal is afraid to reduce without consent. Now, t

can understand perfectly well that the Z.A.S.M., as a commercial concern, wants ta

Three counes make as much profit as it can — ^that is perfectly natural ; but there is a means of

ernm^nt Tn chcckiug it, and wc ask the Government to take the necessary steps. There are three

NetheriiTnS courscs ODcn. In the first case Government may leave the Company alone to do as it

R«uway. likcs, ano I don't think that would be in the interest of the Stieite or the community^

or any other interest except that of the Z.A.S.M. Or it can expropriate the railway ;

Expropriation or clsc it Can tcU the Company that the rates must be reduced, and if not that the

^J^^;:^^;. Company must be expropriated. Government is not without means of making the

^'attnpS*?^!^ Railway Company reduce its rates, and the Company is suffering no injustice, because

Ne° ?eri^^ it has made a certain agreement giving the Government the right to do so. I think the

Baiiwuj-. Commission knows enough about the terms of expropriation, and I need not enter into

them at present. If the concession had been taken over in 1895, it would have cost

^^2i1?*il^6?' the Government £1,785,000 to expropriate the 1,166,660 shares. Of course, the loans

would also have had to be paid ; but they are all practically safe.

Cliairman.

It is not for us to go into these matters now. These are not grievances of the-

mines — they are things that we must afterwards find out for ourselves.

^n^of 'cm?n- Witness,] It would depend on what course is adopted with regard to the railways as-

ing) workiiy to what cxtcut wc could reducc our working costs ; and unless we have some basis to go-

entonGo^ra- upon wc cau make no estimate. Railway charges amount to a very big proportion of

regSrdinr N*e° ^^^ equipment of a company, and they, as far as I can make out, make up about 5 to 10*

theriandsRaii- per Cent, of the Working costs of the mines. That is a very big margin, I know ; but

PwMntii^e of it is an extremely difficult item to estimate, and I have given the outside figures.

ges onworki?fff That is On material. I do not touch on how white or black labour expenses could be^

costs of mines, reduccd in this connection, though that, of course, is a very serious question. But I

shall leave the railway question now, since the Commission wishes it. The next

General taxation qucstion which affects our costs of Working is that of the general taxation. I don't

want to take up your time by going into each item. I can get at what I want in a few

^Siwftti'oVrlv! figures. The revenue of the State in 1885 was £177,876, and in 1897— twelve years.

enue and p^ later — £4,886,000. Well, the population has only increased in that time from 50,000*

1887.**"' to 250,000, according to the State returns, but where the people paid £3 15a per head

then, they now pay £17 13s., on the basis of all the whites contributing equally. It ia

rather difficult for me to explain this matter without getting on to subjects which we

inddenoeof tax- would rather avoid ; but if you look into the incidence of taxation, you will find that

ation. ^Y^^ taxation per head of the industrial population comes out £23, after allowing £5 per

head for the 70,000 forming the rural population. Well, I woidd submit to you that

it is quite impossible for a commimity to keep on contributing like this. That amount

is not paid out of our earnings, because we don't earn enough to pay it. When we

have paid our working expenses, there is not difference enough to pay the taxation.

^"^^awacmin^ Therefore the money must be paid out of the capital. The money — that is our point —

ity exceeds is being stoppcd from going into the groimd, and we would particularly ask the Com-

owrgin of pro- jjjjggj^jj ^ suggest a plan by which the expenditure of the State might be brought

**5^*^^'®"° down to the limit that we can bear. To take an illustration — if you were farming

with a man on certain terms, you would not take half of his seed oats and sell

them, and then reap his half-grown crop for green forage. Yet that is just what

is being done with us. If the money went into the ground and the value

was got out of it, the State could share out of the profits an much as it gets now. It

would not come the first year, nor perhaps the second ; but it would oome^ and that is

Mr. J. P. Fitzpatrick's Evidence. 59

what we ask the Commission to consider carefully. The harvest would be enough for

alL A million and a half a year should serve to carry on the work of the State — ^it ^^SSSStmS!'*

now takes four and a half milliona Then there are such things as heavy purchases

and permanent works, and, though we could pay the interest on them, we don't think

it right that we should pay for the capital out of revenue. It is not very difficult to ^*5*S^i^a?fr

say exactly whore the money comes from ; where you have only one real industry in charyedtorev-

the State and such an enormous revenue, you can fairly assume, in the absence of all A^iption of

evidence to the contrary, that the latter is paid by the former. All the money that money fy'rliK

we have had to pay, £3,000,000 to the railway, and the £3,000,000 which the State ESliom** ^^

has unnecessarily had out of us, has come from European capital, and ought to have

gcme into the groimd. It has not all come out of our earnings, because we have never

esmed it. We lay so much stress on the questions of dynamite and coal, because they

are such clear cases that it is impossible to pass them over, and because we have

to look into every detail that can bring down our coste. If we neglected them we

should be doing, what we are sometimes accused of doing, not attending to our own ^'^^^S^^l^

business. But the real pinch is in the great items of the railways and the general grie?»nMe of

taxation, and we ask that the Commission would consider those matters — we are told J^^ *°**"^

that they are not matters to be ar^ed about in public — ^but consider them, and talk

them over carefully. It is impossible for the inaustry to keep on contributing like

this — ^nothing but ruin stands ahead if it has to do so. Two points I want to mention

to show that it would be possible to reduce our burdens largely. Take the Free State. ^SKSr"Fr2&

Tliey have more than a quarter of the Transvaal population, and therefore our ex- Tnm^La*"*'

p^ioiture, if on the same lines, should be less than four times as much. Their expen- uutions anSi

diture, including £100,000 of special expenditure, ,was last year £430,000. If you «p«»<**<^'«-

exclude the special expenditure, ours should be a lot less than 1^ millions. Inclucung

everything, it should be under two milliona Then the net Government revenue, PaymentBofmin-

strilong out the profits of the Netherlands Company and State profits on dynamite, ^"'^'

was £3,600,000 ; the dynamite, over and above what we ought to have paid, was

£500,000 ; railways, £2,500,000 ; importe, £12,000,000. We have paid the railway

^stem £3,000,000 ; transit dues, £300,000 ; coal, £500,000. We pay for the produce of

the country, £1,000,000; the interest to European shareholders in dividends, £1,500,000;

white wages, £1,500,000 ; native wages, £2,000,000 ; and it brings the total up to over

£28,000,000, and the State only produces £8,000,000. It is true a great deal of that is

cental expenditure, but the enormous difference which remains must make you see

that it cannot go on. That is all I have to say on the immediate causes of the present

state of affidra

Chairman.

Did I rightly imderstand you this morning, on the dynamite Question, when you ^^P^J*^ ,^!
said that the factory was, at the present moment, connected with Nobel's ? — Yes, that {p^^ti* ^
18 certainly what we understand, and it has been publicly stated that Nobers bought
out Mr. Ldppert, and it is known that the agente of Nobel's are associated with the
fiictory here.

Will you repeat the figures you ^ve us to-day as to the actual price of dynamite
nade, delivered, and the expenses on it ? — I do not think I quoted the price at which
it was made. I said the price of No. 1 placed on board at Hamburg was 21s. 6d. I
believe that Mr. Albu saia it could be made at 18& 6d., and I daresay he is perfectly

bels.

Can you prove to us by reliable statistics at what price the dynamite was sold at ^^5**^Z|'
Hamburg ? — ^I can prove that it was sold this year, or within the last six months, at
Hamburg at 21& 6d., that is £43 per ton.

rloe-

60 Mr. J. P. Fitzpatrick's Evidence.

Perce^^ of Thifi momlng you made the statement that the percentage of the wages of the
working oofta, whites was 28 per cent. ? — Yes.

And that of the kaffirs 23 per cent. ?— Yes.
That 10 per cent, went for explosives? — Yea
Coal, 8 per cent. ? — True.

Now that makes it 69 per cent., and you said that 31 per cent went in stores and
material, &c. ? — I did.

Later on you said that railway rates came to from 5 to 10 per cent. ? — ^Yes.
Did you include that in the 31 per cent. ? — Yes.
Peioentage of But not the 8 per cent, for coal ? — ^No. Coal works out at 8 per cent carriage
on ^ork^nl^ paid. We arrive at the carriage on stores this way. We take an item, oil, £1,300. I
^^°^' go to the merchant in town and we get his figures, and can thereby easily estimate

the railage. I do the same with regard to all stores, and then I obtain from all the
companies their figures and strike an average. The reason why I gave the margin
from 5 to 10 per cent, is that some companies are puttinir up cyanide vats, sheds, and
adding to their machinery, and the portion o^ railla/ mtes in thes^ would be
heavy. One company might give 5 per cent and another fifteen per cent, and to
get at the working costs as they are year by year, to obtain a fair result — ^you
must take the average.
Reduction of Now with regard to the 28 per cent for white wages, do you consider that that
white wsffee. ^^^^ y^ reasonably reduced ? — I think it is possible to have it reduced, but that could
only be done by getting in a great many men who can live here cheaper than the men
we have got at present, and who will work at a much lower wage. It would mean
men without families or starvation wages. But no matter how much they were paid
they would still want the necessaries of life. You see in white wages everything
comes in, such as railway carriage and general taxation.

Percentage of Docs the 28 per ccut. includc the wages paid to every white man, from the
worJdngcSto director to the lowest man employed on the mine ? — Yes. That is the average
amongst the principal companies on the Rand, and I think it is the fairest avera^,
because their conditions of working are the conditions which all the other compames
are trying to attain. If you take the average of all the mines on the Band you may
get one or two per cent, either way. Sometimes a mine varies because of the different
character of the reefs, but that is a fair average.

Scarcity of na- As regards colourcd labour, I understand you to say there is no want of black
"'* labour at the present moment ? — Not at present

How many white labourers have you discharged at any of the mines you ace
connected with ? — I really cannot tell you now, but I can find out It is not a matter
that comes before the directors.

Under whose department does it come ? — ^Under the manager's.

-^jj^^^j^ You are the first witness who makes any mention of any further burdens

pressing on the mines, and I would like to have more information on that point
because I have a different opinion about the case. You want it to appear that the
burdens are only borne by the mining industry, and that nearly all is paid out of the
capital which is introduced into the country. We have made a calculation — our
income is so much and the revenue so much. Then you put down the taxation at
about £23 per head. You stated £17 13a first and then £23. — ^Yes, I did, but the
explanation is this : the £17 13s. is the contribution per head calculated on the total
of white inhabitants of the State. But that is not a sound calculation, because the
country population do not contribute anything like as much as the industrial
population. In order then to get at the truth as nearly as possible — I take the Govern-
ment Staata Alraanak figures — the official records ojf population and the rural

Mr. J. P. Fitzpatrick's Evidence. 6i

population, I allow taxation of £5 per head — a figure which errs greatly on the liberal
side, but I take it because it is the figure of the contribution per head of the total
white population in the Orange Fi'ee State towns and country, industrial and rural ;
surely that is most liberal. And on this basis the new population here pay £23 per
head per annum.

I want to be clear on this point. Has there been any increase of taxation
between 1885 and 1897 ? — I do not suggest that, Mr. Chairman. That is why I say
that the taxation comes out of capital, because the people do not and cannot pay it
direct What I suggest is this, if I may put it this way — the duty of the Govern- ^*jj« e™Sdi^
ment is to adjust the revenue to real necessities of the State. If you can conduct the ture.
StaJte on two millions, the rest of the taxation, or the revenue, ought to be remitted,
because it pays the State to do so. It does not matter whether sugar or tobacco or
dgars is raised or lowered in a calculation of this sort. What I suggest is that there
is very much more raised in the State than is absolutely necessary for the Govern-
ment. I can suggest to you, for instance, permanent works, and other points will
occur to yourselves. This we do not consider to be necessary out of revenue.

The increase of revenue does not arise from any direct taxation being put on the sourcea of state
population, but it arises from the increased population of the country itseli, from the '*^*""**
extension of all branches of industry, and the largest increase in the revenue is on
import duty. Why is this, but because the consumption and the use of imported
goods is increasing. It is not the mines which pay that, but the coimtry generally,
and every individual inhabitant of the country. I will agree with you that the
taxation ought to be regulated according to the expenditure of the State itself. But
St the present moment the expenditure and revenue still go like ebb and flood in this
eountry. It is not regulated properly yet It cannot be shown there is any direct

pressing upon any individual — I would suggest that a fat year for the State is a

lean year for the industry.

I cannot see that, because the fat year for the State has to come from the cow —
wfaieh is the industry.

Mr. Joubert.

I understood from your evidence that the Government, through the dynamite Dynamite mon-
eoniaract, has suffered a loss of £4,000,000 during the last four years. — I think I said ^^y-
that if we had paid the duty of about 38s. a case, which we offered te pay in that
proposed contract with Nobel four years ago, the Government would have obtained
•bout £1,000,000 out of that duty— £1 ,200,000 I said, according to the shorthand
writer's report.

You say the Pass Law is a good law ? — Yes. p^m Law.

But that the man who is at present in charge is not able to carry out the Administratioib
administration properly ?— Yes. ^' ^ ^^•

Can you adduce any facts to show that he is not competent ? — The condition of
his department indicates it.

E^ery man puts his own construction on the law ? — Well, the first intention of the
law was to prevent desertions and to get back those who desert, and I have given you
Qoe instance of the Robinson Company of 1,600 deserters, and not one captured.

That surely is not the fault of the Distributor of Passes ? — No ! I did not sav
ihatb The Distributor is only one of the minor officials, who has got certain work

toda

However good the law might be, still the kaffir could " scoot " with his pass ? —
e are safeguards against that. < He has to show a discharge and district pass
before he can traveL At present it is only an extra.tax-coUecting agency. Well take

62 Mr. J. P. Fitzpatrick's Evidence.

the Customs Law. Here you have officials that give receipts for the Customs, you
have an inspector on the border, and also have a hig^h official who organises the whole
thing. If you only had an inspector and no collector, and no prosecutions, the law
would be a failure.

I would like to know in the interest of the high official where you put the blame
on him ? — As we have not the working of the department we cannot exactly say, but
it is the first duty of the organiser to find out why his department does not work, and
if he were a capable man he would know it.

But a kafiir can go away even under the Pass Law ? — Not if the Department
properly organised it.

In what possible way would you prevent desertion ? The kaffir is registered,

gets his pass, and then runs away with his pass in his pocket. What steps

would you take to prevent this ? — Before he can pass out of a district he has

to produce his district pass. Before he can get fresh employment he has to

})roduce his own pass. There is a complete system of checking provided by law, the
etter of the law, out the working of the law provides no check at all.

But how will the pass officials know if the kaffir, perhaps when seeking work,
happens to have shown his pass to a fieldcomet ? — He has to get a special pass as soon
as he comes into the district.

Over that the officials have no control ? — But they ought to ^have. That is just
the point. He has then to get a working pass.

Suppose now that the kaffir tears up the pass and goes away ? — Then he can be
imprisoned for not having a proper pasa

But how can you prevent a kamr nmning away in the night ? How can you
prevent that ? — I will tell you how to prevent it There are here at different times
70,000 kaffirs, and—
.ooid thefts. See here, you are a mine director. Why don't you prevent people stealing your

amalgam ? — Well, we do our best.

And yet you come to the Government to complain ? — Yes. It is just the same as
in the case of burglaries. We lock up our houses, but that does not do away with
the necessity for police.

You admit that you are incompetent to prevent it ? What officials anywhere can
cope with roguery ? — If there is to be an ideal state of affairs, no police are required
at all.

The police are placed there not to stop all the crime, but all they can.— Yes, well,
they might occasionally detect something.

But things often happen that should not, even in the most civilised countries, even
in England ? — Certainly. But in England they also have the best detective service in
the world.

And those at the head of the department can deal with crime ? — Yes.

But you can't put the crime down to the officials ? — I don't say that the police
steal the gold.

You can't take care of the gold yourself, and how do you expect the police to do
so ? You have immense controlover your employees ? — Yes ; ordinary control, but
we can't stop it altogether.

Yet you expect Government to do so ? These things would happen under the
best officials ? — ^i es ; you can't prevent crime altogether, but —

Neither can the Government ? — No, but the Government can make an effort in
that direction.

It is the duty of the Government to make the best laws possible for the commu-
nity ? — Yes ; and carry them out

Mr. J. P. Fitzpatrick's Evidence. 63

Under the best laws crime is done ? — Certainly.

And under the best officials you sometimes don't get detection ? — Sometimes !

But it doesn't often happen nere ? — What, detection ? No.

Well, however good the pass officials may be, there will always be transgressors
of the law ? — ^That may be so, but it should be the desire of the Government to make
ihe transgressions as few as possible. If you thrust on individuals or companies the
responsibilities and duties which are generally supposed to devolve on Government,
^ou would give the directors of the mines the right to institute the compound system,
to keep the boys on the property, and the searching system, so that amalgam thefts
^roold be detected ; but those are systems that we would never suggest, nor would the
•CrOTemment ever consent to such things.

I am a farmer. I work with cattle ; the law on cattle thefts is strict, but still
•cattle are stolen. Now, if my cattle are stolen, can I blame the Government for it ?
— ^Tou could certainly blame the Government if they made no efforts to check the
thefts.

It is my duty to go to the Government after the theft and ask them to help me to
trace my property ?— No ; it is the duty of the Government to take steps to prevent
thefts, llie detection of one theft would prevent a recurrence. It is difi&cult to trace
amalgam once it is stolen. You can trace a bullock. Tou cannot carry a bullock in
jour pocket, but you can carry a lot of amalgam in your pocket. Therefore, there is
all the more necessity for detective measures.

But cattle thefts are often undetected. The thieves might kill and eat the ox. — I
repeat you cannot spoor a piece of amalgam across the veld, but you can a bullock.

You accused the head of the pass department of being incompetent. I would Ariministration
like to have some facts. Now, can you give us any ? — You have the result. It shows °' ^^ ^^•
faulty administration, because there have been no detections of desertions. I will put
it this way. You would not take a clerk out of our office to drive your bullock wagon.
You would take one who had experience in driving bullocks. Now, in a department
<d this nature, which is so very important to the mining industry, you want an ex-

Erienced man at the head. You want a man of fine capacity for organisation, who
8 a special knowledge of the circumstances of the mines ; who has aparticular apti-
tude for carrying out the system ; who has a knowledge of men. You would not
.select a man for the head of such a department who knew nothing about the work.

But you cannot expect a pass officer to act as a detective ? — Detection is a part of
the department. I do not mean to say that the clerk who signs the passes should trace
deserters, but that is a part of the department.

Is it not a matter for the head of the police to deal with ? — It is part of the de-
partment for the carrying out of the law. I don't mean that the gentleman who signs
ibe pass ought to catch uie kafir. But the head of the department must organise it.
To give you another illustration. You have got a High Court, and they sentence a
man, but the Chief Justice does not go and hang a murderer. The whole thing works
together ; one supplements the other, so that you get an efficient working system.

But somebody who has been hung does not go and lodge a complaint against the
Chief Justice ? — He made his complaint beforehand, but it did not carry any weight.

The department is there to issue passes. Now, my kaffir obtains a pass to work
for me, and he deserts. I would go to the police and ask them to help me to
catch him. — But your case would be different. This Pass Law provides for a system
-of dieck to be carried out by that department. Say a boy obtains from the Pass
Office a pass^ and he goes to work on the Robinson Mine, and subsequentlv runs away
sod destroys his pass, as is often done. He should be captured and punished. If his

64 Mr. J. P. Fitzpatrick's Evidence.

time had expired he would be provided with a district or travelling pass. But with]
all the desertions I have mentioned, not one has been captured.

But could you not go to the Pass OflBice and get the number of the boys who ran
away ? — That would not assist us. The one-half of the duty of the department is to*
issue passes, and the other half is to catch deserters. They are under one chief. The
latter half does not work, although the law makes every provision for it.

Why, if you had all these complaints against the department,, did you never
complain to me, as Minister of Mines, about the bad working of the law ? — It is a
special department.

But it is a matter that concerns the mines, and the complaints cannot be put
before the Government, excepting through me. The Pass Department is a sub-sectionj
of my department ? — ^Then you are responsible. The bad working of the law has
been discussed over and over again, and last year a petition was sent in to the Govem*-
ment, and deputations waited on you. This year a petition is being sent in to the
Volksraad.

But why did you not send the memorials through me ? — We thought we had the
privilege of approaching the Volksraad. The Volksraad made the law.

You say the law is good ? — Yes, that is true. What we want is ta have it carried
out.

But the Volksraad put officers there to carry it out, and if these officers were
negligent, why did you not report them to me ? — I think you would understand it
better if I got a copy of the law, and took it point by point.

Never mind the copy of the law. I know it well ; I helped to make it. — Yes, and.
you helped to make the department too. We hope that you will help to improve it.

I will. If you had approached me before there would have been no need for you
to have come here to-day to complain of the bad working of the law.

Mr. de Beer.

The only complaint you made is that 1,600 boys deserted from the Bobinsoni
Mine and were never recaptured. — ^I did not give it as the only complaint, but as an:
illustration of what goes on. I presume that the Commission is about to call in the
mine managers, who will relate their own experiences.

This is the only complaint before us yet. Have you any knowledge that passes,
have been issued to deserters ? — I believe that such has been done ; in fact that must
have been done, because the boys, after tearing up their passes; obtain fresh ones to go-
and work elsewhere.

Of any two presumptions you should always take the most probable. My idea is^
that they go to their kraala — I believe that they remain in the district. Of course
the district is divided into so many parts, and it is necessary for the department to see
that the boys have their district passes when they go around from district to district.
That is the check.

You have been such a long time in this country that you must know that it is.
exceedingly difficult to prevent anyone going or coming. — I know it is difficult with,
regard to single individuals, but where you have kaflSrs going the same route year-
after year, it ought to be within the power of organisation to stop desertion.

You know the peculiarity of natives. During the night he travels, and during;
the daytime he lies perdu somewhere ? — Yes, but I cannot admit Mr. de Beer's deduc-
tions are the stronger, for this reason : in many cases the boys, after coming a long
distance to obtain work, desert at the end of the first month. That cannot be because
they want to go home again.

inini8tmtion<
PmsIaw.

Mr. J. P. Pitzpatrick's Evidence. 65

Is there not an agreement existing between the mines not to take , niggers
belonging to another mine ? — There is an honourable understanding, yes ; I haive oeen
informed. I happened to hear a conversation between some directors of the Primrose
and the Simmer and Jack Mines, where they stated that their compound managers
retomed deserters from one to another, whenever they could detect them.

That chance certainly exists in the Pass Law. From whom did the Pass Law orfj^ of pw
originate ? — It originated from the mines.

You know that the Pass Law is controlled by two departments — the pass depart-
ment and judicial department ? — Tes.

As to the desertion of niggers, under which department would you place them ?
— ^The judicial department is separate from the executive department — the police.

I take the judicial department to mean police included. — I do not think it is inefficient mt
possible to answer that question exactly. It depends in particular instances where the
fault lay, whether it is in the issuing of passes at improper times, or the failure to
arrest deserters and vagranta

Do you know the official who has charge of the Pass Office personally ? — No.

Ana, of course, it would be in the interest of the mines to assist the official if he
was incapable ? — Yes.

I know the official personally, and that he would do all in his power to assist the
industry. He has made several journeys to Pretoria to try and make the law practical.
I feel it hard that he should now be exposed as an incompetent official. — I diet not say
ttiat he did not do his best ; but that his best was not good enough.

But your explanation is also not good enough, seeing that you are unable to place
your finger on the defective spot — Well, you have general and hopeless failure. What
more do you want ?

Mr. Brakhan.

Mr. Brakhan took the witness in hand, and in reply to that gentleman, Mr* Native ubour.
Fitzpatrick said he thought in the cold weather there mignt be a falling off in native
labour ; but the supply would really depend on the carrying out of the Pass Law and
the Liquor Law. The Liquor Law affected the supply this way. When the liquor Liquor Law.
was in full swing, about one-third of the kaffirs were incapable, and the deficiency had
to be made up. If the Liquor Law were properly carried out there would be a sufficient
supply, if general facilities for bringing the boys in were granted by the railway.
They might charge them nominal rates to come to work, and, say double, to go away
a£;ain. He wished to make no unreasonable suggestions to the N.Z.A.S.M., of course.
He agreed with Mr. Albu that the action on the part of the Native Commissioners Exactions by ni
hindered the supply of native labour. Mr. de Beer had hauled him over the coals for 2one«?OTBui
making a statement without details, and he did not wish to do the same again. If he gjj^^j "**^^
did, he would be asked to mention the name of the companies which have to make
Uiese special payments, and as a sole result they would then probably suffer by not
getting boys in future.

Can you give us any figures about dynamite ? — I quoted yesterday the price of ^f^JJforei"^
£A3 per ton in Germany at the beginning of the year. That works out at 21s. 6d. per countrfee.
ease exactly.

Can you give us another instance ? — I give you an adverse instance. In Corn-
wall they pay 36s. a case, but there is a reason for that. Their consumption is not
large enough to enable them to control the prices of the manufacturers. Dynamite,
as you know, is a compound subject to very severe restrictions as to transport and
atcM^ge, &C. You must either get big supplies, charter a special ship, and make large
provision for storage, and so on, or you may get small supplies and pay heavily for

66 Mr. J. P. Fitzpatrick's Evidence.

the risk. If a ship has 10 tons or 1,000 on board, in the case of an explosion, it makes
very little difference, except in the spectacular efibct.
^^*1^dyn«Ste. ^ct, cvcn taking the high prices in Cornwall, it would be considerably less than

the 85s. here. If we had free trade here, at what price could it be laid down here free
of duty, on the basis of 36s. in Cornwall ? — If we bought retail in Cornwall — actually
bought from the mines, which would have already paid profit, we could land the
dynamite here at 47s. Id. a case.

Against 85s. ? — Yes.

And on the basis of the German price of 21a 6d., that would work at 32a 6d. ? —
Yes, 32. 7d.

Are you quite sure that 21a 6d. is right ? — It was sold publicly at that price in
Germany at the beginning of this year. My information is from a gentleman who
got the price there persondly at the very time.

I ask because it would appear from your figures that the Dynamite Company is
making an exorbitant profit here at present ? — I think it is one of the best businesses
in the world.

About 52a 6d. a case profit ? — It is difiicult to get the exact figurea You see it
is not called a monopoly but a Government agency, and the Commission can make
them turn their affairs inside out ; can get the Government to put an auditor on to
them and publish all their figurea It is very hard that we should be called on to
prove a case which the Government can expose at will
^ymumite*" ®' How much dynamite is consumed, and not manufactured here ? — That is another

point the Commission can ascertain shortly. Our information (I make it merely as a
suggestion to put the Commission on the line of inquiry) is that not more than
20,000 cases are manufactured here per annum, and the March output of the factory
(I should say the agency) was stated at over 20,000.
Dynamite royal- Now, is there any commissiou or special profit in this dynamite besides the

Government 5 per cent. ? — It is a very complicated affair. You see 182,500 shares in
the agency were granted to the shareholders in the original concession, which was
cancelled for reasons explained by the President in language stronger than I care to
quote. Then there were —

No, I don't mean the share transactiona I mean, is there any actual sum pay-
able per case besides the charges mentioned ? — Yea There was 6a a case that had to
be paid to Mr. Lippert, 2s. a case to Messrs. Lewis and Marks, and a special payment
of 2a a case for three years to Mr. Lippert. That would be, altogether, 15a, including
the 5s. But the 2a was only for three years, and for an explanation of that I must
refer to private inquiry. There have been so many statements made about it that I
think it is for the Commission to investigate it more than anyone else.

**tod AmerK!n ^^^ ^^ ycstcrday that your firm had an offer from American manufacturers

dynamite. that they would deliver dynamite here for 37a fid. ? — Well, I do not know if I said

that exactly. What I meant to convey was that they quoted a price to us, delivered in

Port Elizabeth, which at the known charges would have enabled us to bring dynamite

here at that price, of course without any duty being paid in the Transvaal.

Are you quite sure that that dynamite is of the same quality as No. 1 ? — It is

guaranteed so.

Manufacture of Supposc there should be free trade in dynamite, are you not afraid, on behalf of

**^^"*°^^* the mining industry, that the ring in Europe would raise the price so much that not

^nSS*" rto?" ^^^^^ benefit would occur to the mining industry ? — Not in the least, because we have

Mininff Industry scvcral courscs opcu to US. We Can either build a factory in Europe, for here we

dynamVre have the biggcst consumption in the world; we could build a factory where raw

"ring." materials could be bought cheaply. We could buy a factory, or several factories,

Mr. J. P. Fitzpatrick's Evidence. 67

•already in existence, or we could go to the manufacturers and say to them : " We are
in a position to place orders for 250,000 cases a year. We want jrour prices, and will
give yon a ten years' contract." I am perfectly certain that capitalists would them-
selves build factories to get these oroers, and then we should get dynamite at the
price mentioned here, of 21a 6d., and I believe if we put them in competition for
these big orders, we should get it cheaper stilL

Yes ; but in the meantime you would be at the mercy of the Americans or Mr.
Nobel? — ^Any ring they might form would faiL The different manufacturers are not so
bound togetner that they cannot compete. In the first place, the American people
-and Nobel would not combine against us, and before we needed to build a factory, we
•could buy factories already in existence.

Then it is your opinion that if free trade were established in this country in Free trade in c
dynamite, then a very large reduction in the price of dynamite is assured ? — Oh, yes. A °""
very large reduction, and it can so easily be done. You see, it is really a matter of
administration only. It is the same with all our grievances here. It can be remedied
by sound administration. The Government have the right to hold the dynamite
people to their contract, but even if they did not cancel the monopoly, they could
allow us to import what the monopolists could not manufacture. If they can only
manufacture 20,000 or 50,000 cases a year, we should be allowed to import the other
200,000 for our benefit, or for the benefit of the State. The difference in price could

fo either to the mines or to the State, as the Government in its wisdom thinks right,
ut it ought not to go as an improper profit to the monopolists. Surely that is not
.an unreasonable request

Then even if the Government were to impose a fairly good duty, yet the in-
dustry would be able to import it at considerably lower prices than now ? — Certainly;
if the Government put even £1 a case on we could get our djmamite very much
•cheaper, and we hope that if the Government took that £250,000 a year they would
rive us relief in some other direction. This is not a matter of antagonism to the
dynamite factory, or philanthropy. It would be a direct gain to us.

In regard to the railways You mentioned yesterday one figure on the basis of Expropriation
1895 that the cost of expropiation would be £1,700,000 ?— 1 said £1,785,000. '^^'

What would it be upon the basis of 1896 ?— In 1896 it would be £700,000 more,
.and the longer this expropriation is postponed the more opportunity they have of
bringing in larger dividen<& In the long run, of course, the taxpayers will have to
.find the money ; that is why it concerns us so very much. If the thing goes on for
smother six years, we will have to pay £6,000,000 for 1,666,660 shares. I leave out
the loans because they are under Government guarantee, and the Government can
take them over in that way, as they are practically responsible. If notice is given
irhis year, this session we will get the thing for three-and-a-half millions, but if it
goes on for another six years, we will have to pay £6,000,000 unless the Government
«utB down the profita

But this is on the whole share capital. Of course, the actual cost would not be ^^hare "nTet
so high, because the Government holds a great number of shares ? — I believe the erianda Ra
Government owns 5,500 out of 14,000 shares. '**^'

But if the Government takes over the railway soon, do you think it would be a ^riaUonofS
burden on the industry ? — The industry would have to pay. Supposing they gave way.
notice this year, they would have to pay £3,250,000, that is, £2,000,000 more than the
actual capitaL We would have to pay the difference between 6 per cent, on the
original capital, and the rate of interest on which the State could raise this
£3,250,000, and if the State took over the whole debt, which would then amount to
about £9,000,000, including all the loans, the credit is quite good enough to actually

68 Mr. J. P. Pitzpatrick's Evidence.

save the interest on it, and you would also save the huge profit that I have alread^r
pointed out, viz., £1,300,000 a year.

^dN*taiR2E Then you stated that the Cape and Natal railways drew out of the earnings
w»y«. £1,800,000 over and above the amount they ought to do ? — Yes.

On what basis do you arrive at that figure ? — First of all the Government
railways are not commercial speculations, entitled to get as much as they can out of
the country. They are meant to facilitate the development of the country. As
regards the Cape, the Free State, and Natal, that refers, of course, to their internal
trade. While thev are developing the Transvaal for us, thev are entitled to some extra

Colonial transit consideration. Well, now, they have their transit dues. They raise their money at 2 J
**"**■ or 3 per cent., and on that calculation I allow them 4 per cent., but the Commission can

go further and allow them 5 per cent, which will give each country a profit over and
above its- interest to give away to their own people, or build other railways for their-
own benefit ; I think that with these and the transit dues they could very well afford
to give us relief.

Will you imply that the mining industry will be relieved in various quarters in

Colonial rail, the casc of expropriation of the Railway Company. It would be relieved by

^'•^^ this Government, and also by Natal and the Cape, therefore this country would not

bear the burden alone ? — Cfertainly. But this country is the key to the whole

position. It was the Netherlands Railway which stopped the cutting of rates in the

Netherlands beginning. It is the Netherlands Railway we are tola which makes the Cape Govern*
E^^S^odtion ment keep on their transit dues. It is the Netherlands Railway which charges 7s. 7d.
)er ton on rough goods from Vereeniging to Johannesburg, when they allow the
Portuguese over the same distance, doing about the same amount of trade and carrying
the same goods, only 2 Jd., and even less than that. We impress upon the Commissioa
that the whole power is in the hands of the Netherlands Company, and they can be
conti'oUed by the Government, and, therefore, the whole power is in the hands of the
Government — of course I am speaking subject to correction, but that is what we
believe.

Railway report You quotcd just uow from the report of the Chamber of Mines on railways ; I
Minl»"^' ^ have read this report and I can only gather from it that the accusation is levelled
against the Netherlands Railway. From what you say the Natal and Cape Govern-
ment Railways should also have been mentioned ? — That report only deals with 1895,,
and there is a supplementary report promised.

As I read the report, the neighbouring railways can hardly draw the conclusion
from it that their rates are too high, which, as you have shown by your figures of
£1,800,000, they are ? — Well, I have given you exactly the basis. They might not
accept 4 per cent. I do not think they would ; I think if we could get an in-
dependent commission from outside they would tell these people that they are all
plundering the Transvaal. The other day we were told, " What is the good of a milch
cow if the cow turns round and drinks all the milk." This cow's head is tied so tight
it can't even graze. They are killing the industry the whole lot of them.

I think it would be well if the supplementary report of the Chamber of Mines-
were to lay it down in so many words that the neighbouring railways are just as
much culprits as the Netherlands, because I do not think the present report convey*
that impression ? — ^A report framed by a number of people will give the average of
their opinion. I have given you my opinion, and I would be quite ready, if I were to-
^PJj^y nSi write a report, to tell the Cape and Natal Governments that they are taking too much.

excoBive. out of US, and that it is a short-sighted policy,
ocment. Now with reference to cement. You are a director, or your firm is very largely

interested in the Cement Factory ? — ^Yes.

Mr. J. P. Fitzpatrick's Evidence. 69

Can you give us fibres showing the cost of cement in England free on board,
-and the price at which it selk here ? — ^Yes. I may say I am glad you have alluded to
<;ement. The factory is often spoken of as the Cement Concession, whereas there is no
«uch concession^ If any other person is sanguine enough to erect another factory, he
is perfectly at liberty to do so.

The difference in the prices is very large? — Very large. The figures were J^^^o' Jmw
included in the papers I handed in yesterday. The prime cost of cement — this comes *'^*"
via Delagoa Bay — the prime cost of a shipment would be £54 14& in Europe, ocean
freight would also cost £54, railway carriage to Johannesburg costs £240, and the
Transvaal duty is £117.

Don't you consider that the duty is abnormally high ? — Yes. I think the duty Dutyonoemei
is too high, that is my private opinion.

Surely there is a special railway rate, or it could hardly be five times the cost in
Europe ? — I could not exactly tell you what the railway rate is. I think the weight
of such material is sufficient protection for it. I do not know that it can be manu-
factured as cheaply in this country as it can be imported. Our factory spends £1,000 Oement tectoi
per month in the Pretoria District in getting limestone, coal, etc., and the raw
material, the limestone put down at the mill, has cost us more than cement free on
board at Hamburg and London.

But don't you think that the factory is too much protected ? — I think further Protection of c
protection is unnecessary.

Yes, but I want your opinion as to whether it would be better to knock off some
of the existing protection ? — Yes, I do think so. I don't know what my fellow
directors on the Cement Company will say ; but this is an inquiry into the mining
industry, and I do think that artificial protection is unnecessary. Besides, I think
the qu^ity of the local article is sufficiently good to compete with that imported.
I must point out that when the factory was started, it was done with the idea that it
would relieve the industry. Cement was then £5 10s. to £6 10s. per cask, and there
Tvas no arrangement with regard to the railway coming forward ; so that it was then
considered not only good business, but for the benefit of the industry. It it cannot,
however, hold it own as a good business, my opinion is that, like all others similarly
situated, it has got to go under. We have spent £113,000 to equip the factory, and
it has not paid a dividend yet.

Mr. Pierce,

Do you consider that the high railway rates make out the main grievance ? — I ^*^^y ^^
have given you the figures charged by all the different railways ; but you will get
froiD the engineers the exact proportions that the carriage forms in the equipment of
a mine. I was unable in the time to work out the proportion. It is a very intricate
subject, and I asked Mr. Seymour, the engineer of the Kand Mines, to prepare a state-
ment. He is preparing it now, and will submit it to you. Now, take a company like
the Geldenhuis Deep. It has a capital of £350,000, but the shareholders put up a
working capital of £410,000, which is very much more than what they got for their
claims, which was under £300,000. In the expenditure the great thing is the large
and expensive machinery and other plant, and railage plays a much more important
part in the equipment than in the working cost. You will get from Mr. Seymour
exactly how the railway rates affect the minea

-^d you consider that if the railway rates were reduced a great grievance would
be removed ? — ^Undoubtedly, if sufficiently reduced. ^Rln*'**Sc

If the Netherlands Company reduced their rates on the Delagoa line, do you think .troi^s<S
it would force the Cape and the Natal Railways to reduce their rates as well ? — Most i^'JSai.'"

70 Mr. J. P. Fitzpatrick's Evidence.

certainly. If the Netherlands Company reduced their rates even from Vereeniginc to*
here, to the Cape level, it would mean an instant reduction of the rates on the other-
lines by 18 per cent, all roimd. Look at the various conferences which take place
periodically both here and at Bloemfontein, between the controllers of the different
railways. These commissions only meet to congratulate each other, and now and then
they talk about the reclassification of sugar and corrugated iron, putting them in a-
higner class, and taxing us more. A man like the Minister of Public Works of Natal,
said that this was merely a figure of speech. A nice figure of speech to put a heavier
tax on us. I have nothing against the Netherlands Company. I say that as a
commercial proposition they are perfectly right to put on heavy rates and make as
much profit as possible, but I also say that the Qovemment has a right to interfere and
see that there should be no undue taxation on the people. The Government could
exercise its right and bring pressure to bear on the Netherlands Railway Company and.
compel them to lower their tariff; but the real solution is expropriation.

You think that the reduction would give great relief ? — It would be an immense
relief, in fact it is the keystone to the whole thing,
ss^^^tion of If the Government were to take over the line and work it for the benefit of the
State, it would greatly improve the condition of things ? — Yes, certainly.

Everything centres on the railway ? — ^Yes, it is almost a matter of life and death.
We all hope that the Government will exercise its rights and take over the railway.
We know that there probably would be difiBculties in the way of administration, but
we believe that the Government could benefit by the experience already gained, and.
would find it wise to select the best possible men for the work.

Do you think that the necessary money for the expropriation of the line would be
obtained at 3 J or 4 per cent. ? — With the greatest ease. If the Government were to-
exercise its right in connection with the dynamite monopoly and railway, and provided
for a sound administration, there would be a restoration of confidence in Europe, so that
the Government could obtain any money it required for the expropriation oi the line,,
and for other purposes.

Now, assuming that the cost of expropriating the line would be £9,000,000, the
annual interest to be paid would be about £360,000 ? — Yes.

Is it a fact that £360,000 per annum is required to pay interest on the railway

debentures alone ? — I am not quite sure of the figures, but the amount would oe

between £320,000 and £360,000. The debenture issue is about £6,000,000, but there is

another £1,000,000 that was to be issued, although I am not sure whether it has beeni

^ctheriMid» ^^^^^ 7^^' There is one other thing I would like to bring to your notice now ; that is^

BtShny. bcforc the company gets at its profit, 10 per cent, is taken on the gross earnings and

placed to the reserve fund, ana last year you will find that this reserve deduction

amounted to £290,000. Now, what is the reserve fund, and who is to get it at the time of

the expropriation ? I think that is a point that the Commission should bear in mind

and find out when the Netherlands Railway people are dealt with. That reminds me of

' another point that the Commission would do well to inquire into. They should find

out whetner there were any special conditions imder which the Potchef stroom line was

built, so that its inferior earnings could be excluded from the general calculations when

the railway is expropriated.

You think that the settlement of the railwav and dynamite questions will go &

long way towards giving satisfaction ? — Certainly, but I do not say that they are all

the reliefs that the Government ought to grant us. I do not want to look a gift horse

B^MoBoftax. in the mouth, but I could not admit that any settlement could be satisfactory or

*^ suflicient which did not deal with the unnecessary £3,000,000 in the general State

revenue. Look at the sum that is paid out of the general revenue, which should really

Mr. J. P. FItzpatrick's Evidence. 71

come out of a capital account as it were. I consider this most unfair and unjust. I do
not suggest that this is done in a hostile spirit, but consider that the Committee will
agree with me that it is a mistake, I do not consider that most of the reforms I have ^'Cudget ^ *
mentioned will entail any loss on the Government — I mean the suppression of the
illicit liquor traffic, the better administration of the Pass Law, and so on — and I would
point out that the Government will have a distinct gain by cancelling the dynamite
monopoly. If they only threw open the whole concern they would only lose 5s. per
case, or £60,000 per annum, but then no one will complain if they put on a duty of
5a, or even 10s. per case. In the Netherlands Railway affair Government will cer-
tainly lose a portion, a large portion of their profits ; but, on the other hand, there will
be a distinct gain to the whole of the State. Of course, the real solution, to my mind,
is not to take it as necessary that the Government must spend five millions a year, but
to see what economies in that direction can be effected, and to what extent expenditure
can be cut down, with a due regard to good and safe government. I think the Com-
mission would be able to make some suggestions on that point.

Do you think that the expansion of trade would minimise the loss of revenue
entailed by the reduction of tariffs ? — Most certainly I do. I say that the present scale
of taxation is crushing, and even if the Government faced a loss of revenue — I do not
say a deficit — the expansion of trade will compensate for it.

Do you think that this is a good coimtry for trade ? — I certainly do. I think the
Transvaal is the finest country in the world.

Mr. Schmitz-Dumont

Mr. Schmitz-Dumont questioned Mr. Fitzpatrick as to whether over-capitalisation capitalisation <
was not the chief cause of the depression, as pointed out by Mr. Labouchere in Truth ™^**'
recently.

Witness said he had not seen Labouchere's statement, but he could not pretend to
check it till he knew the method by which the results were arrived at. He would give
an instance of the difficulty. At one time the Goldfields Consolidated held shares in
the Rand Mines, the Rand Mines held shares in the Jumpers Deep, the Jumpers Deep
sold some claims to the Jupiter. All those shares were only figures, not separate sums
really. It was impossible to say, except one knew every particular instance, whether
a Goldfields share holds an interest in a claim or a share m the Band Mines, which
holds a Jumpers Deep share, which holds a Jupiter share.

That is my opinion, and Mr. Labouchere has the same amount three or four times
over ? — ^No doubt. I only took the amount once. May I ffive you an instance of
another thing. I was at a meeting of Mr. Dieperink's the other day, and he pointed
to the Robinson Company as being over-capitalised. I really think the best judge of
whether a mine is over-capitalised or not is the man who buys the shares, and as long
as a man will pay £8 for a £5 share in the Robinson, he does not, I presume, think it
one too highly capitalised. That was really a very bad instance to quote.

I have the capital of all the mines in tlie Transvaal — the nominal capital of 1 85 gold
mining companies in existence in 1896. The total nominal capital is £54,000,000 for the
185 companies. On this capital they have paid a dividend of £1,700,000, that is about
3 per cent. I don't know whether your Chamber has figures for the whole industry. —
It is diflScult to answer your question whether over-capitalisation was not the chief
cause of the depression in the form in which you put it. For instance, the Ferreira capitaiiaation c
(I speak from memory) has a capital of £90,000, and the shares are at £15. It began •"kndn*

with a capital of £25,000 or £30,000, and tlie people honestly thought it was woi-th
that. They worked a little, and found it was worth a bit more. Then the shares were
sold lU; £3 or £4. And so it went on. The year before last the people who held the

72 Mr. J. P. FItzpatrick's Evidence.

gbaresy nearly all of them, I believe, in Paris, themselves paid £12 or £15 a share to
provide more working capital. The Ferreira pays a dividend of 275 per cent, on the
original £1 shares, but the French people bought at £15. No one man makes the
difference between £1 and £15. One hundred people have turned their money over
before the £15 is arrived at. You must, in order to answer your question, reason
according to what the public think& At one time, as Mr. Albu told you, in 1887 they
thought that £10,000 was sufficient to equip a mine. To-day I will tell you what they
oapiiuu of Glen think. Take the Rand Mines subsidiary companies. The Glen Deep, with a capital
ca^S' of Rose of £500,000, put up £329,000» and they have to pay more yet ; the Ilose Deep have a
c»fS' of Gel- capital of £350,000, and they subscribed £523,000 ; the Geldenhuis Deep, with a capital
cafeuSo^ of £350,000, put up £410,000 in sovereigns ; the Crown Deep, with a capital of
Seep. £250,000, subsdribea £630,000, and so on. Now, I say the shareholder is the judge

regarding the capitalisation. Remember his position. He can buy the shares or leave
them alone, just as he likes. If he buys them, he has the right to register them, and
then he acquires the right to vote. With his vote he can turn out the Directors if
they do not manage the business rightly. The Directors know that, and even if there
were no honesty amount them, it is good policy to manage the mine properly. They
would be discredited if they were turned out of office, and shareholders in Paris,
Berlin, or London, would never afterwards entrust them with any of their money.
You can only judge of mining by results. Of course, if a man takes a claim on the
Main Reef, out of which you know only £30,000 profit can be got, and puts up a
capital of £500,000, 1 should call that a swindle where there is such absolute proof.
But you must know that people will speculate. You can get a man in the street who
will give 30a for a £1 ticKet in Phillips's sweep, because he likes the number or
believes in his luck.

"^likin^lSdii? ^^ yo^ think the industry has reached its full bloom yet, or is only in a state of

tnr. development ? — Decidedly in a state of development. There are two possible courses

of development. There are now a certain numoer of companies working, or trying to
work. These were started under the belief that the conditions would enable them
to work at a profit, or the conditions would be immediately so much improved as to
give them a good margin. They are not developed yet. Then we know that there
are great stretches of ground which we can't work now at a profit, but which
we believe in some few years* time We shall be able to work at great profit to
ourselves and the State when the artificial conditions are improvea. The
natural conditions on the Rand are almost the best in the world — ^regular reefs, good
value in them, long extent, large enough to work, coal on top of them — ^you can't ask
more from nature than that; but it is the artificial conditions that require to be
improved. I think if we talk these over, and come to understand one another, the
members of the Commission may be the means of instructing others, and showing
them what our hopes are for the industry and for the State.

^ tion^^******* ^^^ think then that the question of the over-capitalisation of the industry cannot

be decided while the mines are still in a state of development ? — No.

Lftw to prevent It must, in your opinion, be left for the future to decide ? — Yes, quite so. I have

b^ flota. noticed that there has been a suggestion made to the effect that shareholders should be
protected by Government. I think everybody would support that idea — that the
public should be protected against deliberate swindles. I would also point out that in
England the shareholders are protected. A man can go to the courts and prove that
there was not sufficient grounds to justify flotation, that the promoter did not act in a
bona-fide manner, and there are lots of cases in which men have suffered from their
misdeeds in this direction. Even as the law stands now in this country, I believe a
man could go to the High Court and obtain protection, and I say " Good luck to him."

GO]

Mr. J. P. Fitzpatrick's Evidence. 73

Mr. Joubert.

Should not the Chamber of Mines co-operate with the Department of Mines to

I A a law protecting European shareholders from being defrauded by swindlers ? — I
on't know if such a law could be framed without interfering with what, in other
•Gountries, is considered to be personal liberty. You have to come to the point whether
the man intended to swindle, and that can only be settled by the Court, as a matter of
personal judgment. If a good law could be devised, it would be beneficial.

Is there no posdibility for the Chamber of Mines to work with the department for
the passing of such a law ? — I don't know if laws exist in France, Germany, England,
or .donerica, to that specific effect ; but if so, I would be guided by the wisdom and
immense experience of the law makers of those countries ; otherwise we might be
rushing in where angels fear to tread.

Is it then impossible ? Are you not willing to discuss the matter with us ? — Oh,
ves ; but I do not think that is exactly what is wanted in order to restore confidence.
lx>ta of things combine to shake the confidence of investors. For instance, to deal Oonoenioiu.
with some small and homely matters, I was told by a member of the Sanitary Board
y^terday that an application for the underground rights of the Market Square, had
oeen made by Mr. «Jan Meyer, a leading member of the Volksraad. That does not help
to restore confidence. The Sanitary Board applied for a portion of the Telephone
Tower Park, in order to erect a Town Hall. They were rerused. Now, someone has
made an application for the right to erect swimming baths. That does not restore
confidenca I hope the mere publication of these things will prevent them from suc-
ceeding. The Sanitary Board applied for the Union Groimd, also for public purposes,
bat it was granted to private applicants on the quiet They have hawked it about
and borrowed money on it It was offered to many of the big capitalists here, but they
would not touch it The Sanitary Board are told that a building is to be put up, in
which fifty rooms will be set aside for them, but they are not satisfied that the authori-
ties should do good by stealth, and blush to find it fame.

I cannot understand how mere applications can shake confidence. — Well, they do,
becaose they are only made when there is a chance of their being granted. But, if
you want facts, I will tell you what shook the investor's confidence as much as any-
thing that has happened for vears — that was the Ferreira claim jumping raid, which *'«"**'* >***
it was sworn to in Court had been suggested by you yourself, Mr. Joubert.
Not " suggested " by me— -

Chairman,

The Chairman said Mr. Fitzpatrick was straying away from the original question.

Witness said that the Minister of Mines had wanted examples of what shook con-
fidence, so he was obliged to give them. Continuing, he added that, so far as he knew ^itnlw^^vrtiiini
the feelinc of the Chamber of Mines, he could assure the Commission the Chamber to co-opeimte
would jnsSie every effort to co-operate with Government for the protection of share- ment to*^pw^
holdera If they could find a practical means of protecting Shareholders, the Chamber toSoo?^ "^
would gladly assist

Mr. Jovhert

If the Chamber is willing and will assist, I am willing to propose such a law
to be added to the Gold Law, this session of the Raad. — You will, of course, address
the Chamber on the subject ?

Yes.

Mr. De Beer,

You speak a good deal about what is wrong on the side of the Government ^SKS?**°^ **'
Are you now quite satisfied with the economical working of the mines : is there no

»-»

i:.

74 Mr. W. L. Hamilton's Evidence.

' ^ ■•■■■■ ■

mismanagement or waste of material; is there not too much money spent on managers,
engineers, &c., &c.? Are you so perfectly satisfied with yourselves ? — Certainly not !
We are never satisfied — always trying to improve, but if I knew now where a fault
lay on our side, I should start in to remedy it, and not wait to report it to the Com-
mission. We have been trying to reduce expenses. We are trying, and we wiU
always try, and if we were satisfied, we would stop trying. I have not the slightest
doubt there must be faults on our side too. I never intend to give the idea that we
claim to be perfect. It is impossible and absurd. Every year we find out something
fresh in the way of reducing some of our costs, and we hope to go on in that way. I
can only speak in connection with the costs of those mines with which I am con-
cerned, and I can tell you that if we knew there was anything requiring improvement,,
and capable of improvement at our hands, w^e would tackle that at once on our own
account, and in our own interest.

But you not only know about the mines which you are a director, or are in-^
terested in, but have a general knowledge ? — Yea

You have a general knowledge of the whole business ? — ^Yes, but necessarily an
imperfect one of others' business.

I onlv ask you for an explanation of this question in order to justify yourself..
There will afterwards be other evidence on this point. That would only prove that
vou only suggest improvements on the side of the mines on one point, and that is the
black labour question. That is why this question was repeated ? — No, I do not sug-
gest that. We keep on at every directors* meeting as to costs. We divided these-
things up into percentages long ago, before a Commission was ever thought of, so that
we coula know whether we could put our finger upon extravagances, or the spot
where economies could be made.
Reduction of You havc chicfly drawn the attention of the Commission to the black labour
ofminS.^*^ question? — I think the fact that we have made an eflbrt to cut down the black labour
within the last fortnight shows you two things — the first, that we realise we can
effect some economy ourselves — and there we may be to blame for not doing it before —
and the second thing we realise is, that this is a good opportunity of doing it.

The witness was then permitted to leave, being thanked by the Chairman for
his statement.

Mr. Laurie Ham- Mb. W. Laubie HAMILTON was Called. He stated he was a civil and mining
dliST'* "'"'' engineer. He had been up to now connected with the Bamato Companies.

He had been in Johannesburg since the end of 1888.

Cliaimuin.

Mr. Bamato.! Will you plcase inform the Commission on what points you can give evidence ? —

I may say first Mr. Bamato had intended to offer himself to give evidence, but had to-

fo down to the House of Assembly. He asked me to assist you ¥/ith any information
had. I propose to lay before you a statement of the stamps working in the Bamato-
group, and of the additional stamps which might now be started if the Commission
can help us to further reduce the costs. I will also lay before you the actual costs of
a paying mine and the actual costs of a non-paying mine ; also an illustrative estimate
supposed to have been made in 1890, showing how we estimated possible reductions
and how these had been partly fulfilled and partly falsified by certain reforms we
anticipated being withheld. Witness then handed in the following statements, which
stamps running, the Secretary read : In the Bamato Group (Rand and EJerksdorp) we have : — ft
stamps hung up. Companies with 400 stamps ininning, 400 stamps ; 90 stamps hung up on these
nil idle. companies, 90 stamps; 7 mills idle, with 6S0 stamps ready to crush, 650. The total

Mr. W. L. Hamilton's Evidence.

number of stamps that might now be crushing imder improved conditions of comitry,
1440. In these 13 companies we propose to add 220 stamps, 220 ; 3 companies that
were crushing with small mills, but are ready for heaw equipment, would run 480 ;
80 tiiat under improved economics of the country we coiud have (instead of 400) 1,840
emshing in 12 montha In addition to these, out of many large properties held by
this group, we have mining properties sufficiently proved to promise dividends under
improved conditions that would require a further equipment of 1,350 stamps, making
a total in this group, that could be crushing by the year 1900, of 3,190 stampa It is
estimated that the different groups could have 9,000 stamps crushing bv 1900. Of
Oke six companies crushing, the nominal capital is over 1^ millions, and tne hard cash
sank in opening and equipping these mines amounts to over 1^ milliona Of the seven
companies with idle mills the nominal capital is over 2 millions, and the opening and
eqmpping them has cost over 2 millions. So that over and above the monev spent for
and on partly developed properties now waiting the promise of better conditions, and
the large amounts paid to farm and estate owners tor other properties, this group of
financiers has more than two millions lying idle in machinery, etc., in seven mmes,
that under improved conditions of country might now be producing wealth to the
country and dividends to the shareholders. This does not include money paid for
diese properties, but only the hard cash spent on them in bringing them to the
mnoducing stage. In the above statement no part of the many properties in which the
Bamato group hold large interests, but which are under the control of other groups of
financiers, is included.

The comparative costs of the New Primrose Mine for 1890, 1893, and 1896, mining
and milling, are as follows : —

Cost per ton (not including Tailings Treatment).

Poeaible nomber-
of ttainpe un*-
der improved,
oondimis.

Total estimated
number of
stamps in 1000.

Capital of crush-
ing mines in
Bamato irroap*

Capital of seven
non •crushing
mines of Bar;>-
natogTOup.1

Comparative^
oosts of New
Primrose for
1890, 1803 an(i
1896.

Labour —
European
l^atdve

Six months

ending June

80th, 1800.

S. d.

6 2

7 10

Reduction ac'

oomplished be-

tween 1800 and

1893.

34'per cent.
12

Six months

ending June

80th, 1893.

Six months
ending Dec
3l8t, 1890.

Total Labour... 14 0^ 22

8.
4

d.
0
0

4
5

d.
9
9

Total cost per
ton including
tailings treat-
ment 6 months
ending Dec
81st. 1896.

8. d.

5 4i

6 5^

Natives' Food

Sxplodves ...

Fuel

lighting, tools, lubri-
cants, etc.

cyanide and zinc

Ulaantenance & general
Total Stores ...

Miscellaneous,., offices,
salaries, etc.

1 6

1 in

1 llj

2 2

2 1
9 7i

1 9

(4 % inc.)
31 per cent.

11 0

1 0

2 0
1 4

10 6

1 5

2 6
1 8i

11 10

24
25

99
99

13^ 0 9i

1 7
7 2i

1 4i

1 4i
7 9

0 7

1
2
2

0
1
1
10 5

0 9

25 5 23 per cent. 19 7 18 10 23 0

Redemption and Depreciation not included.

Ck>Iiimn L gives cost of mining and milling, Jane 30, 1890. Column III gives
cost of mining and milling, June 30, 1893. Column II. gives percentage of reduction
ioeompliahed by improvements in mining and appliances from 1890 to 1893. Column

Mr. W. L. Hamilton's Evidence.

Bednotion of
ooflte In labour
and stores,
1800 to 1808.

Bednotion of
costs in iabour
and stores,
1898 to 1806.

Bednotion of
costs oi ad-
ministoation.

Increase of cost
of dynamite.

Langlasffte Boy-
alwomng costs

IV. ^ves cost in mining and milling, December 31, 1896. Column Y. gives cost in
mining, milling, and cyaniding, December 31, 1896.

I would ^1 special attention to the following points in these actual costs : — (1)
The reduction obtained between 1890 and 1893, 22 per cent, in labour and 25 per cent,
in storea (2) A further reduction in the total (19s. 7d. to 18s. lOd.) from 1893 to
1896, in the face of greatly increased hardness of ore depth of mine. It is noticeable
that while by the introduction of machine drills, etc, we reduced the labour by 6d.,
the stores were^increased 6^d. by the increased consumption of coal and dynamite
(amounting to lO^d. between them). The food of natives also increasing 6d., con-
sequent on scarcity of mealies (through locusts) and the heavy railway charges from
coast and Free State for imported mealies. (3) The low cost to which we have
brought administration, which includes mine ofKce, town and London offices, con-
sulting engineer, manager, directors, etc. The reduction on this from Is. 9d. in 1890
to 7d. in 1896, is eoual to 70 per cent. (4) The heavy increase of cost per ton of
dynamite in face of all our efforts at economy. These charges are worse in most
other minea

The costs of mining, milling and cyaniding at the Langlaagte Royal Qold Mining
Company were as follows : —

Estimated

oost, with

5 months

1 month

reasonable

endina:

reductions

Nov.

30th,

May 1-81,

in railway

180e.

1898:

rates, price

—

of stores, and

Cost per

cost of kafflr

ton.

labour.

Tjabour —

s. d.

8. d.

European

...

7^ 6

■ • •

» Native

...

6 11

• • •

Total labour

...

• • •

14 6

9 0

Stores —

Natives* food

...

1 0

...

Explosives ...

...

3 0

...

Fuel

...

3 1^

...

Lighting, lubricants,

timber, etc.

• • •

1 4

...

Cyanide and zinc

...

0 10

...

Maintenance and general

2 1

...

Total Stores

...

• • •

11 a

6 6

Water rent, etc.

...

0 11

• 1

. •

0 6

Miscellaneous offices.

salaries, etc.

...
...

1 2
27 lOJ

• . •

1 0

Total working costs

17 0

Cost of milling and mining

24 6

...

•

• •

Cost of cyaniding taiUngs 3 4^ 27 10^ 3 2^ 25 3^
Yield of gold per ton ... ... ... 258. 2d.

Column I. gives last five months before closing down. Column II. gives cost for
May, 1896, when boys were more plentiful and mill worked nearer full time. During
the five months of column I. boys were scarce, and there was a strike at reduction cwc
wages, drills having to be employed, raising costs of white labour, explosives, fuel.

Mr. W. L. Hamilton's Evidence. 77

maintenance, and general. CJolnnm 11. — cost 25a 3Jd. — ^is somewhat above coet of
working with plenty of kafirs under present circumstances. C!olumn IIL gives
estimated cost under improved economic conditions of country. That is, with co-
operation of Government ; reasonable reductions being given in coal, dynamite, rail- ^^Jtf^dedwd
way rates from coast, and assistance in reducing kaffirs' wages by : — (a) Inducing the from oovem-
Trmsvaal kaffirs to come to the Band, and enforcing and improving the Pass and ^^^^
liquor Laws ; (h) Reducing cost of coal, dynamite, etc The mining companies can
then make the air drill a recQ live competitor with kaffir labour. These reforms, which
are not ttie vZiimate extent we hope for, are reasonable, and will enable the Royal and sesuiteofreduc-
other mines (of which the Royal is a sample) to re-start crushing at once. The togTco^^**'^"
reduction in European labour will be brought about by getting sufficient kaffirs at low
wi^es to supersede drills (air\ in stoping and increased output. This mine, promising
weU in outcrop claims, has by reduction of yield in second and third rows, become
classed as a low grade mine : this was not anticipated ; and although expected to be
average grade, its capitalisation is about the lowest on the Rand, the property
account standing in books at £760 per mining claim. The Balmoral stands at £1,230, ^^r'dlfm^^of
the Primrose at £2,084 per claim, and the three companies surroimding the Royal, R*?afBihS»-
which are considered far from being over-capitalised, stand at £3,200, £S,200, and ai and PHm.
£5,500 per mining claim respectively. The Royal is equipped in the most approved EaJSpinent of
style, with 140 s^mps and all accessories ; the mine and equipment stand at £1,480 gjy^^***^'*
per stamp, which will compare favourably with other mines on the Rand.

To show what we expected to do, and what has been done, I give the following
illustrative estimate, showing reductions estimated: — (1) Reduction possible to the
mining companies unaided by the introduction of improved management, machinery ^"rklSS oo^tl
and appliances, reducing amount of labour and stores necessary in producing and powibie with-
emshing the ton. (2) Reduction possible with the assistance of the Government in a^overnment
reducing price of labour and storea

Mining and Milling. Ooet ner Ton.

Labour. Stores. Administraooo. Total.

8. d. s. d. 8. d. s. d.

Cost of a typical mine in 1890 16 0 14 0 2 0 32 0

1. Estimated reduction in amount of labour

and stores by improved management,

machinery, and appliances ... ... 40 43 10 93

aid.

i 0

i 3

1 0

12 0

9 9

1 0

3 0

4 0

0 0

Reducing cost to 12 0 9 9 10 22 9

2. Estimated farther reduction from reduced
price of labour and stores to be got by
economic reforms of country 30 40 00 70

Reducmg cost to 9 0 5 9 10 15 9

lianglaagte Royal mining and milling costs reduced from 32s. in 1891 to 22s. in 1896.

The cost of cyaniding tailings is not included in this estimate, not being commenced ^^^®' cyanid.
in 1890. Since introducing treatment of tailings by cyanide, which at first cost from
8a. to 10a per ton, the companies have reduced the cost of this process by 5s. per ton
aiMl hope to get a further 2a by improved economic conditions. The companies have ^*^"riJin" ^ob^
thus accompkshed a reduction of 148. 3d. per ton in mining, milling, and cyaniding, aireadyaocom.
and are hoping to be helped to at least another 9s. per ton. oomlianies. ^

Chairman :

Can you give the present average wage of a white man on the mines ? — I cannot ^wl^.**'^*^^**
pve you the average actual wage ; on a properly managed mine they vary from £15
to £25.

78 Mr. W. L. Hamilton's Evidence.

Is 'it not possible for you to state the average wage on the mines which you have
^een connected with ? — I cannot from memory. I can send it to you. I may say I
agree with the evidence of Mr. Jennings, Mr. Way, and Mr. Fitzpatrick.

I would be very pleased if you would hand them in.

[Supplied afterwards, according to the Chairman's request — ^In six mines in
the Bamato group, taking the New Primrose, Ginsberg, Rietfontein, Roodepoort and
New Spes Bona, for the first three months of 1897, and Langlaagte Royal for the five
months before it shut down, the average monthly pay was £15,737 to 640 men,
equal to £24 lis. 7d. per man per month. This includes managers and staflb].

Mr. de Beer:

capit^andooeta You say amougst your group there are six mines crushingr ? — Yes.
ment of cnwR' The nominal capital of which is over a million and a half ? — Yes.
aJn^^p For the purpose of developing these it cost another million and a half ? — Yes.

The statement made by you is in connection with these six mines ? — I have taken
the New Primrose and the Langlaagte Royal, one being a paying mine and the other
a non-paying mine. The New Primrose is the paying mine.
Capital imd ooets The scven nou-payiug mines have a nominal capital of over two millions ? — Yea
ment of slySi And Opening up and installation another two millions ? — Yes. That does not
^eB^'SfBa!? include the unequipped properties.
uJuaAiS^oF'in' What docs opening up and installation mean ? — The sinking of shafts and the
staiiatioii. equipping of them with machinery, and the erection of mill, cyanide works, and the
erection of houses, etc., in connection with the minea In other words, the hard cash
we spent before we began to crush.
Development of Is it to bc uudcrstood that the development of these mines is in such a way that
natogroup. ' all of them have a certain quantity of ore on hand ? — Every one of them ; the least
has nine months development ahead of the mill. We have numbers of mines besides
these that are not equipped, which have a large amount of development. May I
suggest, in regard to over-capitalisation, you should look at these figures. We have
sunk over our nominal capital in every one of these mines, the money being found by
Bamato Bros, putting it up at a premium.

I see in your expenses there is a reduction since June, 1890, between 12 and 41

per cent. ? — Yes, that is to 1898.

^c<»t* of *hind ^ ®®® ^^ December, 1896, there is an increase again. Can you tell the Commission

and machine to what reasou do you ascribc the increase ? — You will notice the increase is in stores,

'^^' 6Jd. ' There is a decrease in labour, 6d. We brought labour down from 'lis. to 10a

6d. There is an increase in European labour of 9d., and a reduction in kaffir labour

of Is. 3d. During that period we put in machine drills and put in more European

labour.

oort^f native j ^^^ jj^ your stores, native food was reduced by 34 per cent, in the three years

from 1890 to 1893 ? — Yes ; but the locusts and other plagues raised the cost of mealiea

Since then, having to import them from America we have to pay so heavily for bringing

them from the coast up here. We pay 8s. at the coast and 22s. here.

^efc' *^***" What is the reason of the increase of 4 per cent, in explosives ? — It resulted from

the same cause, introducing drills instead of kaffir labour and the ore getting much

harder, and that is why I ask you to reduce these items and enable us to make the

drills real live competitors with the kaffirs, and so enable us to reduce kaffir wagea

Qi^ty of dyna- Since we have been obliged to buy dynamite from one man — I don't care whether it

is Nobel or anyone else — we could not guarantee the best quality. I myself repeatedly

applied to the Government to import other qualities of dynamite. I was refused. The

result is, I go and buy 100 cases, I take it home, and kill 100 kaffirs perhapa I go

Mr. W. L. Hamilton's Evidence. 79

back ix> the man I bought it from, and I say : " Your dynamite is bad. I am obliged
to buy it f i-om you even if I kill another 100 kaffirs. I have been taken before the
magistrates for manslaughter. I escaped scot free because witnesses for the prosecu-
tion proved that I had done all I coula, and it was the fault of the dynamite." I had
done all I could according to the regulations — the fault lay with the dynamite. A
boy was suffocated through the bad fumes. I may say this, I have put a shot in
-and fired it A boy has put a drill in it and found a part of it left unexploded,
which injured him, and afterwards a third portion was unexploded in the bottom of
the same hole. I don't say Transvaal dynamite is worse than any other, but if you
^re obliged to buy from one man, whether sugar, dynamite, or anything else, he
^charges his own price and supplies his own quality.

Can you tell me what was the price of the dynamite per case ? — It was pretty
much what it is now. We were using such a small quantity that we could not buy to
advantage, and I believe there was a " ring " then.

But we understood from other witnesses that dynamite No. 1 standard was good ?
— I think the witnesses that said so only use gelatine. We did away with dynamite
.as much as possible, and the dynamite factory very readily made special cartridges for
us so that we might use gelignite instead of dynamite.
Do you know No. 1 standard of dynamite ? — Yes.
Do you know the percentage of nitro-glycerine in it ? — No.
You have never analysed it ? — No.

Have you used it ? And is it the dynamite you complained about being in
•different qualities ? — I do not need to tell you how much there is in it. They take
this earth and they impregnate it with as much nitro-glycerine as it can carry.

With regard to the bad dynamite which exploded — from whom did you buy it ?
— We -were obliged to buy it from the concessionaires.
And which was it ? — No. 1.

Do you know any other company that is dissatisfied with the dynamite ? — Yes.
When I was prosecuted I had evidence from nearly all the managers on the Rand. I
^t workmen and had their opinion, and it was the almost unanimous opinion that it
was inferior and irregular — just the biggest danger — in quality. The quality, as far
as I hear to-day, is better than it was. But I say we are in continual danger so long
as you compel us to buy from one man. We cannot complain of it ; we must buy it.

With regard to fuel ? — We reduced fuel 31 per cent, from 1890 to 1893, but Fuei.
during the last three years it has increased on us, not because of increased price, but
becaose of the introduction of labour-saving appliances which needed the consump-
ticHi of coaJ, causing the consumption to increase, so that we were between two
di£5ciiltiea Either we had to continue the expensive kaffir labour or we had to
sopersede them by machinery, which would use expensive stores. We now say we
have reduced as lar as we can the amount of labour, and the arrumnt of stores by the
introduction of the best of engineers, workmen, and machinery, and we cannot touch
^he price of these articles. Therefore we ask relief upon the prices.

Hoi^ are your mines situated ? — They are very much separated. They are from situation of
Bietf ontein to the Balmoral and Kimberley Roodepoort mines of Bar-

What mines have you got between here and Krugersdorp ? — The Royal, Croesus, °* ^'^'^^
Unified, Aurora, and Bamberley Roodepoort

Did the Croesus exist in 1890 ? — It existed as a 20 stamp mill.
What was the price per ton of coal delivered at the Croesus in 1890 ? —I cannot
\ it was not in our hands then.
Or from the Aurora ? — ^I can tell you from the Royal. At the Royal the cost in co«t 'of fuel of
was about 23s. or 248. per ton. k^yifmiiS!"'

80 Mr. W. L. Hamilton's Evidence.

After May, 1896 ? — We paid up to the time we stopped about 22h. 9d.; in fact, in
the summer we could bring it as cheaply by ox-wagon as by raiL
oorte of stores. With regard to lighting, tools, etc. ? — We have reduced that very largely, as you

see given in the case of lighting. Candles, paraffin, etc., we have superseded in a.
great proportion by electricity, transferring some of that cost to fuel. Then the price
of candles and lubricants and other things has been reduced slightly, not because of
the reduced rates so much, because we can import it ourselves without fear of
the traffic being stopped. I mean merchants used to import lar^e stocks in the
summer, and they could charge us any price they liked. Take candles, for instance.
The carriage from Durban amounted to about 6a coming from the border by ox-
wagon. The present charge is 6s. 9d. But I gladly say that the convenience of the
rail is in being^ able to buy anywhere we like, and we thus get these supplies at a
much lower rate than we did before. They are, of course, a very small proportion of
the costs — imder 3 per cent,
oosto of cyanid. With regard to cyanide and zinc, you have got nothing to say about that ? — No ;

*°*^- but we are very thankful for the help the Government has given us in the matter of

cyanide. I did not show any reduction in the statement because we were not using it
in 1890.

You have heard the evidence of some of the other witnesses ? — Yes.
Comparative Then you havc noticed there is a great difference in the cost of your mines,
entmhies. ^' Compared with other mines ? — I think the costs given previously were average costs.
I may say I made up the average cost quite apart from those gentlemen, and came
out about the same.

We have never had such a satisfactory statement before us like thia Was the
total cost of working 22a ? — In the other estimates ?
Averaireworking When the average was taken ? — 29a 6d. was given by Mr. Eckstein, and that ia

minrt:** nios ^j^^ basis of most. I made it 29s.
^New"lriS^^' At present your mine works at 23s. ? — I would say yes, but you have to make
mine. that 26s. to Compare with the 29s. average.

You are still 4s. below the others. How much per cent, would that be ? — ^That
would be about 15 per cent. It would not be fair for me to allow you to infer that
we manage better than the other mines.

The others can speak for themselves ? — This table which is before you is com-
piled on the Primrose, which has a large thick reef It would not apply to all the
othera Take, for instance, the Ginsberg, which is a much higher grade mine and haa
a much smaller equipment. We cannot work there at the same cost as at the^
Primrose.

You have made a note that you gave the average for the six mines ? — No, that is-
for the New Primrose and Langlaagte Royal.

You say the Primrose works under very favourable circumstances ? — Yes, it doea.
Go to columns 4 and 5 of this table. Might I suggest one favourable circumstance
in the Primrose — that freight and coal is a good bit less than the mines on the other
side. It is not a large item, but it is a real one.

The total cost is about 4s. more when you include cyanide. That Is 7 Jd. is for
cyanide, or cyanide and zinc ? — That is so.

So in order to work and treat, the cyanide will cost you 4a per ton, What are
the returns ? — Well, I may say our profit is all in the cyanide. In most of our milla
we are making a loss, so far as our milling is concerned. So that had we not at &
great cost introduced this cyanide process, or some other process, some of the rich
mines would have been shut down.
Cyanide patent. jg ^he proccss a patent ? — No, not now.

• Mr. W. L. Hamilton's Evidence. 8i

Has it been a patent ? — It had a patent in this country. I may say I for one
refnsed to pay the royalty for years before the matter was settled. I told them, " We
are quite wilUng to pay you a reasonable royalty, because you have done something,
bat we will not and cannot pajryou what you ask." For instance, they came to me
when I was on the Primrose, lliey wanted to take 15,000 tons to treat then, and to
gye us a proportion of the gold. Then we were to take the works over at cost price.
We said no, and we paid them their highest royalty, and out of this 15,000 tons we
made a profit of £8,600. They would nave given us £2,500.

In the six mines are there any water-rights, or so ? — They are not kept separate.
Was water and material increased in cost ? — It may be in bringing water from a
distance, as we have to do on the Royal, it increases. Would you permit me to
call attention to the last line on this page before you turn over. The item is miscel-
laneous— offices and salaries. You will notice we brought that down for mining and Beduction o!
milling, leaving the cyanide out, from Is. 9d. to 7d., a reduction of 70 per cent. That "*
includes directors' fees, managers' fees, consulting en^neers, office expenses in London
and Johsjinesburg, and at the mine, and I don't think you cah call it high.

Is this a true extract from the books of the Primrose Gold Mining Company ? —
Yea I can give you the actual certified figures, but I may say I have condensed them
so as to compare them.

Mr. SchmitZ'Dumont :

In the beginning you say you have 400 stamps at work ; is that right ? — Yes. ^^^ Ijrork-
I>o you know how many stamps are working in the whole of the mining ing.
industry ? — About 2,600 I think. I speak from memory.
Is it not 5,500 ?— Working this month ?
No, last year. — I am talking about to-day.

Are there 4,400 working to-day ? — No. I think in the Rand and Klerksdorp
there are about 3,000 working now.

Last December there were 5,500. Is it not 10 per cent, less to-day ? — I think
you i^ill find it is under 3,000 stamps to-day.

There were 5,500 last December, accoraing to the statistics ? — Last March I think
you will find there were 2,850 in Heidelberg, Bllerksdorp, and Johannesburg.

{^Supplied afterwards. — ^The number of stamps crushing in March last on the
Band and Heidelberg districts were : — Chamber of Mines, 2,440 ; Association
of Mines, 835. Total, 3,275.]
I only want to make a comparison. In the year 1900 you will have about 3,200 ^^^tam"li
stamps ? — We expect that. in i9oo.

So you multiply your present number by eight ? — We do not multiply our present
stamp power by eight. Our present stamp power is 1,140. If you go back to 1896
you 'will find we were working most of those stamps.

How many stamps had you at work in December, 1896 ? — I cannot tell you
onless you can give me a list.

According to your statement you have 400 at work, and in the other companies
4,000, and in the year 1900 you expect eight times as many stamps working, but for
the other companies you only allow two-fold or double ? — I can only speak of our own
eotnpanies, where I know the facts. As to the 9,000, it was an estimate made up by Total estimated
men who can get at the books of most of the companies. I am careful to say it is an •tamUin iwo
eaUmate,

With regard to the working of the 9,000 stamps, which would signify a great
inerease in the development of the Goldfields, how are you going to ^et water to work
them ? — ^It would take at least two years to bring the water from tne Vaal River to

82 Mr. W. L. Hamilton's Evidence.

here. I think you are rather premature in saying tliat in 1900 there will be that
many stamps on the fields I do not think you will be able to provide water on the
Rand for such a quantity of stamps ? — Take the Band Mines dam, for inatance» that
will supply an enormous number of stamps. It is already made and full, and there
are other large dams being made, and we are not going to run our heads into dry
years without providing for all contingencies.
Native labour. In place ot 70,000 natives, 140,000 would be required if 9,000 stamps were work*

ing, would there not. Do you think it will be possible to provide that numb^ of
natives ? — I see no difficulty in doing so if the Government ^eive us real solid aasis-
tance in compelling or inducing the great native population of the Transvaal to work.
I will give you figures, and you can certify them yourselvea I believe you will find^
in the 3-mile radius, that out of about 30,000 kaffirs there are about 750 from the
Transvaal. I say if we cannot make our 4fOO,000 kaffirs work better than that, then
I think we ought to be ashamed of ourselvea
^ooniftSeL* 2 About the dividenda You have six companies working. Which of them have
Baimto group paid dividends ? — I have not gone into that at all, but I believe all of them have.

I have a compilation of ^1 dividend-paying minea In the year 1896 none of
your companies appear ? — I do not know as to that But I may say the Primrose has
just paid up its 20 per cent, dividend, part, in fact all, of which belongs to 1896.

Yes, but it wasn't paid in 1896. What dividends have your companies paid in
1896 ? — I cannot tell. 1 am an engineer and only take figures that I can prove. I can
go into that.
compariBon of I will ask two technical questions. About the dynamite — which is the worse,
geStiSe? '^" the dynamite or the blasting gelatine ? — We find there are few complaints as to blast-
ing gelatine.

Was the accident at the Langlaagte Royal caused by blasting gelatine or dyna-
mite ? — It was dynamite.
Fuel. About the fuel — ^jrou said that you made great reduction in it. Did you ever

make a careful investigation of the matter with respect to the different machines ? —
Yea

What is your opinion ? I have made special enquiries of a boiler inspector, and
would you be surprised to hear that, with the same machinery, in one mme the cost
was £50 per annum, while in another it was £200 ? — I should not be surprised. Bat
they must be very poor and badly managed minea

And you say you have made great reductiona Formerly there must have been
a considerable waste in your companies ? — Undoubtedly. We had not the means we
have now. We had, as you know, the old locomotive boilera

At present great saving could be effected in most mines in regard to fuel ? — ^I
daresay, and if you tell me where, in any of our mines, we bum too much, it will help
us very mucL

Mr. BrakJian:

What tonnage did you crush in the last six months of 1896, and what was the
average per ton ? — We crushed 133,000 tons at the Primrose.
That is about 22,000 a month ?— A little over.

What was the Quantity in the six months ending June, 1893 ? — 66,400. That is

11,000 a month — half the quantity.

Ubour eaving You mentioned that between 1893 and 1896 you introduced a good many labour-

°****^^ savins; machinea Would you not consider, taking the tonnage crushed during the

period under consideration, that the reduction in cost, as stated here, is a very small

one ? — It would be if the circumstances were the same. Put us, in 1893, into the

Mr. W. L. Hamilton's Evidence. 83

same ore that we are now working, and you would have probably to add 6a per ton
to the coet of 1893. In other words, we have reduced the cost in the face of greatly
increased hardness of quartz and deeper, mines. When I left the Primrose one black-
smith sharpened drills for five times more tonnage than was done at the Royal when
I went there. In other words, after sinking a three-foot hole, we used five drills to
one at the Primrose. The one was in the soft ground, the other was in the blue.

What difference do you estimate there has been between the mining of
tlie free milling ore and the mining of the present blue ore ? — I said I thought about
6& ; but I may say this, that a kamr used to drill two, and sometimes tli^ee holes,
"where he now drills one.

And to that, and the dynamite, and other causes, you ascribe a difference of about ^^^^^ eoSl
6& per ton ? — ^It's a rough estimata o' ^^„^"

You also said that the cost of officers' salaries was in 1893 la 4Jd., and now 7d., "**
making a saving of about 60 per cent ? — Seventy per cent.

Bearing in mind the tonnage crushed, the percentage gained, or rather saved,
iRTOold not appear to be so high, because these charges do not increase in proportion to
the tonnage ? — No. May I say, in connection with that, much has been said about
the salaries paid to officials. When one official — a consulting en^neer for instance — salaries ot mine
looks after, say, 12 large companies, you cannot expect him to take the same salary as ^"^
if he was sitting down in ona So that, supposing you double his salary, you will
reduce the cost per ton very largely. I want this point brought up. There are some
of us here because we are obliged to be here tor our health. I could get as big
a salary at Home to-day as I do here, and there living is a third of what it is here ;
so I think that managers and engineers are not paid, nor the officials of the Qovem-
ment either, as much as they ought to be.

ITon said that mealies at the coast cost 8s., while here they cost 22a Isn't that oott of meaiies.
a alight mistake — 14s. for railage and duty ? — We imported ourselves. There was
one wipment that cost us 23s., and which cost 10& in Durban. We can now buy it
for 8s. in Durban, and the price is pretty much about 22s. here.

"Would it surprise you to hear that our figures give the price at 9s. 7d. in Durban
and 20s. here 1 — That is my reckoning. It would not surprise me at all if you did.

With regard to the charges of the New Primrose for 1893 and 1896, does that ^nw^ISSItoSb
include any charge for mine development and redemption ? — No. During the last mine.
period named we put on about 2a for redemption, so that our cost for the six months
ending 1896, including redemption, was 25s. roughly.

Mine development is of course part of the working cost ? — This 2s. has nothing
to do with mine development

Let us be clear. The cost is 23s., including any work for drives, winzes, etc I —
It includes all the work. In the Primrose for instance, where I increased the develop-
ment from 40,000 to 200,000 tons in sight, it was all charged against mine cost during
the period of the first three years mining here.

And is it still so ? — No, it is done in this way. If they develop 30,000 tons and
work. 20,000 tons they give the cost credit for something, or if thejr reverse that,
develop 20,000 tons and work 30,000 tons, they charge 10,000 tons against the costs ;
of course that is included in the 23a

Mr. Smit

What do you mean by improved state of economy ? — I mean the economics of
the ootmtry.

Which way ? — ^The last table explains that. We have reduced the costs you see sute relief.
in No. 1 by 98. 3d. by economising the amount of labour and stores. We now hope

84 Mr. W. L. Hamilton's Evidence.

* *

that you will help us to reduce a further 7& in mining and milling by reducing the
price of labour and storea In other words, we see that you must reduce your charges
so that our coal and other stores may be reduced in price. Taking the coal, for instance,
if the Raad will permit the railway company to lay the south railway they ask for,
they will be able to give us all sidings. That will save us la 3d. for bags, 8d. for
bagging and handling, and 3& for transport, making a very substantial saving,
without a penny being taken out of the railway company's pocket. In addition to
that, instead of starting at 3d. per ton for the first ten miles, I will be reasonable in
saying they will start at 2d., which will give us a further reduction of 3s., so, roughly
speakmg, it will give us a saving from 6s. to 7s. per ton in coal. I say the economics
of the country are not right if the railway can charge so much above the actual costs.
In the Old Country when we have been in the same position we could lay down
a railway ourselves. I remember, in the case of a railway company charging us their
maximum rates, we surveyed a connection to another line necessitating a two mile
tunnel, and then went to the railway company and said " we will make this and send
our traffic past your line," and they had to reduce their ratea We cannot do that
here.

^mhSn °nd** What do you mean by the " improved conditions of the country *' ? — I mean the

try. °*^ ° ^ heavy rates for everything imported — coal, dynamite, etc I do not go into high
politics at all, it is simply a question of hard cash with me— -a question of political,
economy.

Increased rev- You Say there are certain things on which you want the Government to meet

reHef. '"" ' °'y^^> *^^ w® want you to point out these things. — All I would say is that, speaking
from experience, I can promise the railway and the Government greatly increased
revenue if you grant these abatements.

Co-operation means that something is to be done from both sides — can the
Government expect that co-operation from your side ? — Gladly ; we have already done
a good bit on our side ; we have reduced our costs 14s. 3d., and we are asking you to
help us to reduce them another 9s.

Quauty of dyna- -Ajc the accidcuts from dynamite of recent date ? — Accidents are quite frequent
mite. even now. I am anxious to say I have no objection to Transvaal dynamite. I, as a

' resident of the Transvaal, have made the Transvaal my home. I should buy Trans-
vaal dynamite in preference to any other, all things being equal. If you turned
around, and said " you have got to buy from England " I would kick against it just
the same, because England would sell just as bad stuff as the Transvaal.

Was dynamite cheaper formerly than now ? — ^I think practically it is about the
same.

Price of COAL Is the pricc of coal higher now, or lower ? — It is lower, and we are thankful to

the Government for it The reduction in the coal rates helped them very little. If
they got the coal for 2d, for first ten miles, they would get a large supply from
Middelburg.

Netheruuidamu* Are the railway tariffs of such a nature, that, notwithstanding you buy cheaper
way rates. ^^ ^j^^ Ports, still articles are dearer here than formerly ? — No ; they are cheaper
because of competition. May I suggest a figure to you, and which will help you to
see how we are placed ? We imported two crushers from Chicago ; the rate from
Chicago to New York, which is considered very high in America, is £37 6a lOd. for a
distance of 1,000 miles, and from Vereeniging here it was £39 6a — ^more for 50 miles
than it cost for 1,000. I don't ask you to run it at the same cost, but it shows you
what America is doing for the stranger in her State — ^not her own children — and we
ask you to do for your children to-day as well as they do for strangera

Mr. W. L. Hamilton's Evidence. 85

Yon say yon can get the same salary there and live at a third of what it costs
yon in the Transvaal ; does not that show that our railway rates should be somewhat
higber ? — I acknowledge that your rates ought to be higher, but when you charge
more for 50 miles than they do for a 1,000 then you come to this : That we pay you
lOd. per ton per mile, while we pay the Cape and Natal 2Jd. The difference is too
great^ although I think you have a right to more than they get.

You know that Vereeniging is exceptionally high for certain reasons? — I say
yon have a right to more. But the point is that if you reduced the rate you would
make the Cape reduce it also. They are charging us too much. For instance they
charged us £152 on the shipment I have referred to for 650 miles, while in America
the <3iarge was £37 for 1,000 miles. Both the Cape and Natal are sinners. You
have got the key, and you can go and tell them that they must reduce the rate.

Supposing they say they wont ? — You say they have got to do it, and we will
back you up.

We must get the goods along their railway ? — You simply tell us which Govern-
ment won't do it, and we will simply say to them that we won't order a single ton of
goods into their docks, whether it be Delagoa Bay, Capetown, or Durban. You can
rely on co-operation from us.

What do you mean by a possible reduction by improved management — which Farther reduc-
management do you mean ? — Mme management. SSte poSbi^

Are there any faults you can lay your hands on which can be improved ? — This what improve-
estaniate is made of 1890. It is what I call an ideal or illustrative estimate. We Srwted?*" ^
have acomplished that saving of 9s. 3d. by the means shown. The second estimate
of reduction is what we want you to help us to do, to make it 20s. per ton, including
salaries. The estimate I have always had fixed before me of 20s. is what we must
bring our costs down to. We have done what we can to the extent of 14s. towards
that, and we ask you to help us towards getting a further 9s.

In what way would you suggest that we can ensure a good supply of kaffir supply of native
labour ? — ^That is rather a difficult question for an engineer k) answer. We have ^°**^'-
great difficulties in getting Transvaal kaffirs. As an instance, I sent one man up to
get a large number of boys, and he wired, saying he had got them ready, but that Native commte-
the official would not allow them to come out without payment of 10s. per head. My SS^! ****^
man -wired : '* Shall I pay it ? " I replied : " No." And then he wired to say that a
proclamation was at once put out, saying that owin^ to smallpox the boys would
not be allowed to leave the district. That is a negative way in which you can help
us. The positive way is to put on hut tax. The Dutch, who are more accustomed to
-working the kaffirs than anyone else, are well able to devise means to make them

Where there is no complaint how can the Government interfere. It is just a.8
difficult for the Government as it is for you ? — I quite see that

Chairvian.

Have you been obliged lately to discharge white miners? — I am not now manager. Reduction of
We have been for the last six months on some of our mines reducing our staff. In SSourf ^^^^
fact, in every possible way we are reducing costs. I myself am to-day without a
salary from the company, and I may say, further, you think our expenses are charged
to the companies. My salary has never been charged to the companies as consulting
eo^meer. Messrs. Bamato Brothers have paid that. We are now touching our own
pockets, giving valuable time without remuneration. The directors are drawing
hardly any feea I am on about seven or eight companies, and I have got a small fee
from one company this year — about £8 — for directors' fees. I give that as a sample.

86 Mr. F. Raleigh's Evidence.

I am managing director and acting manager of the Langlaagte Royal, and that
without a salary. The directors meet every week, and char£;e no fees. We are
simply doing everything to reduce costs to the very lowest possible limit.

The Chairman saia he wished to thank Mr. Hamilton for the statistics he had
given. The way he had prepared his statement had saved a lot of time to the Com-
mission, and he (the Chairman) was very pleased to hear from what Mr. Hamilton
had got to sav, that there would be co-operation from the group he represented.
Tlie points he nad brought under notice would have the best consideration.

Mr. Hamilton, in return, thanked the members of the Commission for the con-
sideration they had shown him.

In supplying the fibres re European wages and stamps crushing on the Rand,
Mr. Hamilton aSded the following : — May 1 say that but for your preferring to
question me instead of my giving an opening statement, I had intended mentioning
one or two important points in which the Qovemment and Raad had helped us,
LijuOT.pjm^nainely — the Native Liquor Law, the Native Pass Law, and the Public Purity Law.
These are admirable laws, and I take the opportunity of heartily thanking the
Qovemment for them ; and of pleading that the necessary staff may be provided to
adequately enforce them. Your Honourable Commission has only to enquire into this
to find that considerably more money must be provided to do this, else they will
become a dead letter or worse ; in fact, the Pass Law is far from being a real help
now. I desired also to call your attention to the terrible injury done to the country
Iron conoearion. and to the burghcrs thereof by the Iron Concession. Years ago, but for this con-
cession you would have had iron and steel works started. On the behalf of European
capitalists, I approached the holders of this concession in 1889, for permission to
make and maniuacture iron and steel, and the lowest terms they would give was a
royalty of 2d. per lb., or nearly £20 per ton, which was, of course, prohibitive. The
iron and steel industry is a better industry for the permanent welfare of the country
than gold, and if you consider the money sent out of the country since 1889 for iron
and steel, that could have been manufactured here, you will see what this country
has lost through a concession that has only blocked the way of progress.

Mr^^^eigh'B Mr. Feank Raleiqh stated he was secretary of the Rand Mines since the

1st January ; previous to that he was business manager and secretary of the
Rand Central Ore Reduction Company, and was seven years secretary of
the Crown Reef Gold Mining Company.

Chairman.

On what points can you give evidence ? — I can give the Commission information
regarding the railway charges on machinery. I can give the general working costs
of the only mine that is producing in the Rand Mines Group — Geldenhuis Deep.

Mr. Hugo.

Will you be able to give information regarding the native labour question and
labour generally ? — No, I cannot give information on that.

Chairman.

Rauway rates Begin with the Railway question. — I have prepared a statement showing the

cost of importing ma.chinery, taken from the Rand Mines' books, the statement shows
the percentage of total importing charges. Railway charges vary from about 12 to
460 per cent., but that is an outside case.

Mr. F. Raleigh*8 Evidence. 87

Is that calculated on the cost ? — ^Te& There is one item in connection with the DeUverychMgw
delivery of ^oods by the railway department that I would like to draw the Commis- SSida^^u^;^
sicm's attention to. The railway dehvery is to take place free within 2^ miles radios.
The Langlaasrte Deep lies within a mile from the 2^ miles radius, and the charge for
delivery is 3d. per 100 lbs ; at that price delivery can be obtained direct from the
poods station. The mine gets no consideration for the 2^ miles radius for free
oelivery. The charge for delivering heavy weights, say between 15,000 and 20,000 lbs.
weight, is la per 100 lbs. The same work we can get done for 6d. The working
percentages of the Geldenhuis Deep are : — Native labour for the year 1896, exclusive oeidenhuisDeep
of food, appears at 21*2 per cent ; food cost, 389 per cent. ; white labour, 35*89 per ««>«««>» «**».
cent. ; coal, 8*45 per cent ; dynamite, 10*7 per cent. ; cyanide, 2'2 per cent. ; and the
balance is made up of sundry itema

Mention some of them. — Zinc, '15 per cent. ; oils and lubricants, 1 per cent. ;
candles, 1*36 per cent; dies, quicksilver, and screening for the mill, 1 per cent;
sundry stores, assaying, chemicals, and machinery, 5*6 per cent ; insurances, licences,
rents, printing and advertising, premium on natives, ana sundry items, 5| per cent.

Mr. Smit

Is the delivery of coal charged in the 8 per cent ? — ^Everything is included.
How much does it cost at the pit's mouth ?— Our price is for delivery at Elands-
fontein. The price at the pit's mouth may be estimated.

Mr. Hugo.

In the 36 per cent you put down for white labour, does that include office ^'^^^ °*'"®
expenses, manager's salary, and directors' fees ? — Manager's salary is included, but
directors' fees are not included ; they only amount to £92 8s. for the year.

All office expenses are included in that, except directors' fees ? — I think the head
oflice salaries are not included ; they amount to £84fO for the year.

Chairman,

You have not stipulated in that statement what the price of coal is, and how BaUway rates on
much it costs for carrying it ; would you specify how much of that 8J per cent, is °****
freight, and how much really is the cost of coal? — ^That I only will be able to
estimate.

You see there is a complaint about the high rate charged for coal, and I am
anxious to fix the percentage of the freight on coal ? — I have not got the information,
bat I can obtain it

You say the freight on machinery varies from 12 to 460 per cent. ? ^ I notice cement railway
there is one as low as 7 per cent — The 460 per cent, is an outside case — ^it was the ****•
freight on Portland cement.

Mr. De Beer.

One would expect a far heavier expenditure on a deep level property than on an Economy of deep
outcrop mine. I see several of your expenses are less than the expenses handed in ^*''*^-
of several of the outxjrop companies. Their working expenses come to 29s. 6d., and
your expenses are shown at 25s. Can you adduce any reason for that ?— Probably
better equipment ; improved machinery might have a good deal to do with it Some
of the outcrop companies have not the most improved machinery ; the deep levels are
being equipped with the very best Annual yield of

What is your yield per ton ?— For the year 1896 it was 6 J fine dwts. gil?*'***"^**

88 Mr. Pi Raleigh's Evidence.

Including cyanide ? — Including the yield from all sourcea
What is the value per ounce of fine gold ? — £4 4a

So that your profit was about 3a per ton ? — 2a 4d., exclusive of interest on
debentures and advancea

Was the mine developed twelve months ago ? — It commenced milling in December,
1895. But more than 6^ dwts. was not to be expected, and so far as I Know the out-
crop South Reef is estimated as being struck at 3,000 feet

Is it not possible that the reef is faulty ? — 6 J dwta is the average for the twelve
montha
BonaniaMwys. The Bonanza is a deep level, a^d it goes much more than 6 J dwts. ? — Very much

more. I believe the Bonanza goes 20 dwts.

Over an ounce ? — Yes ; but the Bonanza is in a very rich area.
^?Sr?ir rSd Won't the Ferreira, the Worcester, ajid the Wemmer deep levels also be very

Wemmer deep rich ? — We hopC 80.

So that you cannot take 6 J dwts. as an average jdeld ? — I don't think so.

Do you know a French engineer called Mr. F. Pollock, and have you read his
report ? — No.

It is perhaps not quite fair to put these questions as you are not an engineer.
At the same time I am pleased to get your statement ; it is a true extract from your
books and disproves the report of Mr. Pollock, who says deep levels cannot pay, and
that it is impossible for them to pay.

Mr. SchmitZ'Dwmont

You say white labour on the Geldenhuis Deep costs 36 per cent. Is not that
very high compared with other mines, where the average is between 25 and 30 per
cent. ? — I know no reason why white labour on the Geldenhuis Deep should be greater
than other minea
'^tOTB^and mtoe To what accouut do you charge directors' fees ? — General expenses.
dSihuis^DTOp ^^ what way are they calculated ? — One guinea per meeting. Meetings are held

* fortnightly, and the total amount paid in 1896 was £92.

There is no proportionate share of profits in the Geldenhuis Deep ? — No.

Can you give us what salaries are drawn by the mine secretary, workmen, and
managers — especially the officials charged with administration ? — The manager gets
£1,500 per annum ; mines' secretary, £540 per annum ; storekeeper, £300. I do not
remember what the compound manager is paid, but he is not a highly paid official.
The assayer gets £480 per vear.

Do you think other mmes pay about the same to their officials, or do you know
of mines where they receive much higher pay ? — I don't know of a case, but I believe
there are cases where they are more highly paid.

Mr. F. Raleigh's Evidence. 89

RAND MINES. LIMITED,

Details of Importing, Cost of Machinery, Plant, etc., via East London.

92 Mr. R. M. Catlin's Evidence.

make, together with the bonus ? — I give the average now of nine shafts — the cost of
Pwwnujre^ lil ^^^^ labour averages 27*43 per cent, and of native labour 33 per cent,
tive wages 'on Which percentage oi the total working expenses of the mine is represented

!?^^d^ ui paying bonuses to white men ? — ^All the work we do in the mine is sinking shafts ;
we do no stopes, we are not yet on the reef, and these figures cover the entire cost
The percentage is as I said, 27| and 33. The timber and the framing, 15 35-lOOths
per cent. ; lubricants, 56-lOOths per cent. ; fuel, 4 69-lOOths ; general stores, 7 48-lOOths ;
maintenance 1 15-lOOths ; office expenses, London office, and so on, 5 per cent.
What do you mean by fuel ? — Coal.

As it is put down in the mines, including carriage from the pit's mouth ? — Yes,
including everything until put into the boiler.

Mr. Brochon.
You have said nothing about dynamite ? — Explosives 5 J per cent.

Mr. Hugo,

What is the real objection raised to the bonus system you introduced ? — I don't
claim to have introduced it I work it. It is an old system, and used all over the world.
p»y of white Well, what is the real objection ? — The objection I have heard is that it seemed an
^"' anomaly that an ignorant miner should be able to receive £75, £80, or £100 for one

month's work. But my object is to get the shafts down as rapidly, and at the cheapest
possible cost ; and I do not care wheuier I have to pay an ignorant man or an educated
man. I believe I work for the interest of my shareholders, and on this system would
gladly pay a man £200.

Mr. SchmitZ'Dv/mont

You say that you have a Catlin shaft, in which you sank 142 feet in one month.
How many working days did they work ? — About 24.
itejpe^of shaft That is sinking at the rate of 6 feet a day. Do you think that the work done
at such a rate would be safe in future ? — I do, and I invite inspection.

What is the distance between bearers, from 80 to 100 feet ? — 72 feet or less in
most Cfiuses.

Of course that depends on the speed at which you want to haul ? — What depends ?

Say, for instance, you want to haul at 3,000 feet per minute. — ^Not at present.
Later on perhaps.

You have not calculated that ? — ^Yea Our winding engines will be capable of
working at that rate.

You think that the timbering would be sufficient ? — ^Yes. We are timbering
very securely, because we realise that these shafts are to be the highways for
enormous traffic at high speed, and our timber is far in excess of the strength
required.

Mr. Brakhan.

Can you tell us how many men were employed last month in sinking the shc^t ?
— I understand you to mean white men. There is only one white man at the bottom
of the shaft, and connected with the sinking of the shaft 12 white men.

In three shifts, I suppose ? — Yes, per day of 24 hours.

I suppose the kaffirs clean the shaft after blasting ? — Yes.
Amoant of bon- Twelve men then divide the bonus of £483 ? — Yes.

That is £40 each ?— Yes.

What is their average pay per month ? — £1 per shift.

That would be about £24. In other words, these men have drawn about £66 per
head. I have heard that in some of these deep level shafts £150 has been paid per

Mr. R. M. Catlin's Evidence. 93

head ? — Each man does not get the same in the division. The white man in charge
at the bottom being in the greatest danger receives the greatest amomit.

What would he receive from this ? — I cannot say from memory, but over £100.

Do you not think that is very large pay ? — "So ; if I can increase my sinking 62 "^^SeSL^
feet they can earn it I believe that the progress of 80 feet in a 25 feet by 6 feet
shaft is far above the average, and not long ago it was considered a record. If we
aasame that shaft has gone down 80 feet, and we pay the required wage and no
bonns, it would have cost us £24 Is. Id. per foot, and, as a matter of fact, it only cost
£19 78. lOd. per foot, and so it does not matter to me whether a man earns £100 or £200.

You say the. cost per foot is less. But if you had only sunk 80 feet it would
have been less. — True, I take out the bonus and the cost of fuel, stores, lubricants,
and I have also taken out the maintenance, although that is hardly fair.

But yet, surely, although the price per foot would be a large one, your expen-
diture under that would be less ; therefore, I don't see how you arrive at the saving
of £289 ? — If I save 62 feet of timbering I save 62 times that number of pounds,
shillings and pence, and so on through the list.

Do you consider that with contract work you could achieve the same result ? — ^I
consider I could not. I have never been able to do it. I do not know that the men
are the only men in the world who can do this, but I do know, so far as my
information goes, no other men ever have done it.

Of course the speed of sinking the shaft very considerably affects the price ; ^^^^^J^J^^
unless there are particular difficulties with regard to the ground, the price does not "*

seem very cheap ? — Bear in mind these shafts are not small ones, they are the largest
mzed shafts on the Rand.

I know a shaft of similar dimensions on the West Rand. It has been simk,
everything included, for £15 per foot by contract work, and the speed was 90 feet a
month ; of course the speed was less, but the price compares very f avom'ably with
both instances you give ? — I quite believe that can be done, and we could do it. Of
course, should the ground get more favourable, we could reduce that price very
materially.

Well, the main point is this, you establish the fact that it is advantageous to pay
your men £100, or even more, per month ? — If they earn it I feel justified in paying
£150 or £200.

On that point I daresay opinions are divided. The 27 J per cent for white
labour includes the bonus ? — Yes, and the manager's salary.

And yet the kaffir native wage comes to 33 per cent. ? — ^Yes.

Now if in sinking a shaft 12 white men are employed, you have a certain
number of white men on the surface. Can you tell me how many men there are ? —
Twelve altogether — nine outside and three in the shaft.

And how many kaffirs ? — It depends on circumstances how many we can get out.
We sometimes have 45 on the shift.

How much do these kaffirs working in the shaft get a day ? — Our black labour
average in that shaft only comes to 2s. 7d. and a fraction.

Mr. Brochon.

Do these white men working in the shaft include carpenters, who put in the frame
of the timbers ? — The carpenters who frame the timbers are charged in the timbering.

Yes, but they are working in the shaft ? — The timbers are framed by men who
do nothing else.

So you have not only three men in the shaft ; you have more ? — We have the
timbering men up in the shaft above.

Mr. R. M. Catlin's Evidence.

You gave an illustration, which was a very exceptional one, of a man drawing
£140 to £150 a month in the shaft ? — Then I only gave the illustration because I
thought it would be more in my favour.

What do you reckon the average sinking will be in your shaft ? — I cannot say,
off-hand. We have some very bad ones, but I think the average will be up to 80 feet
or 90 feet a month.

Yon have nine shafts and 12 men for each shaft. That will make 108 white
men. What is the average salary these 108 white men make ? — There are certain
shafts that make no bonus at all, and there are certain others that do make a bonus,
and the average would depend entirely on the average footage. I have not the
figures, but if you desire it I will send them to you.

The average salary would not be £100 ? — No, it would be far below £50. The
peril is not so much from the ground; we have one or two shafts in which the
ground is very good, but the progress is nominal owing to a great influx of water.

Mr. BrakJian,

Can you tell us what the average pay for six months would be of the man who might
draw in one month £100 ? — ^It would depend entirely on the progress his shaft made.

His salary is bound to vary, hardness of rock might prevent him doing much one
month, and it would be well to know what his average would be for six months ? — ^I
would not like to state it off-hand, but I will send you the figures.

SiMMBR AND JaCK EaST, LIMITED.

Statement of Average Wages earned by men working on the Shaft, including the bonus
paid, for 12 months to Slst May, 1897.

1890. £ 8. d.

June ... ... ... ... ... 37 0 0

July
August
September ...
October
November ...
December ...

1897.

January
February ...
March
April
May

Average wage for the 12 months

61 8
60 U
5i 18
39 10
46 8
48 3

52 11
43 18
35 15
48 8
50 14

7
3
9
7
2
3

9
1
7
5
3

£579 11 8
£48 5 11

Knights Deep, Limited,

Statement of Average Wages earned by men working on the shaft, including the bonus
paid, for 12 months to 31st May, 1897.

1896.

V «AJUiV> ■ . • . <

July

August

September ...

October

November ...

December ...

& 8.

31 2

28 10

35 0

33 5

34 13

31 9

29 0

Mr. W. Dalrymple's Evidence.

1897.

January

February

March

April

May

£ 8.

22 6
26 3
26 1
28 U
31 16

1
i

6
5

£358 2

£29 16

Average wage for the 12 months ...

Mr. Wm. Dalrymple was the next witness called. He made the following Mr. wmuun du-
statemeni: Sw*" *^*

I have resided permanently in this country for nine years, and have been, during
that period, more or less connected with the exploitation of the mineral resources of
the country, and latterly, in the actual mining of gold on these fielda I have for the
past five years permanently resided in Johannesburg, and during that period have been
the representative of the Anglo-French Exploration Company, Limited, which com-
pany IS a financial corporation, having its head offices in London and Paris. In the
meantime, during the absence of Mr. George Farrar, I am the representative of the
Anglo-French Farrar group of mines. These mines are situated in the Boksburgxhe Angio-
district, commencing at the Driefontein Consolidated Mines, Limited, and finishing at JJSSpof SnSI
the Ne'w Kleinfontein Company, Limited, a distance of approximately from eight to
nine miles along the reef. During the time I have been in Johannesburg, we have
been enraged on an entirely new section of the Band, which has been opened up and
exploited during the last five yeara With one exception, none of these mines can be
termed high grade mines, but are all considered highly-payable by the exercise of
the strictest economy, and consequently the suggested reductions enlarged upon by
previous witnesses have special importance wlm our group of mines. Following
on the very exhaustive ana lucid statements which have been made by the gentle-
men preceding me in this enquiry, I feel in coming before this honourable Com-
mission at this stage, that I can only bear further testimony, and affirm the evidence
which has already oeen led up, setting forth the excessive taxation which this gold
industry, in the past, has been called upon to bear ; therefore I do not feel justified in
wearying the honourable Commission by detailed recapitulation. I shall, therefore, be
as concise as possible.

In the matter of white labour, I was, at one time, of opinion that material reduc- white wssres.
tions could be effected under this heading, which constitutes the heaviest charge in the
working costs of these mines, but, after careful analysis of the cost of living at present
on these fields, and making due allowance for the expense incurred in transporting
oneself from Europe to the Witwatersrand, there is little margin left ; and I consider
that the evidence of Mr. Fitzpatrick on this point can be accepted as the absolute
podtion, and, if it were not for the fact the various companies interest themselves in
and provide suitable accommodation for their employees, and also see that they are
properly and reasonably catered for, the margin between their wage-earning capacitv
tna their expense of living would be indeed infinitesimal. The average pay of au
whites on our properties, including charges for administration, works out at from
£22 10a to £24 14s. per month.

In the matter of native wages, it has recently been decided by the industry to g^»**^J l^JST^re-
reduce the native wages by 30 per cent — this is, of course, only as far as the actual duoUoo of oa-
vages are concerned. I woula, however, point out to the Commission that the cost of ^l^'Svot!^'

96 Mr. W. Dalrymple's Evidence.

bringing the labour to these fields, and the feeding of the natives, remain the same ;
therefore, the actual reduction is considerably less than what appears on the face of it

^°iMSv2**to Tl^® itei" of expenditure by the companies in bringing native laWur to these fields is
^H^iMvMinM * ^®^y serious one, which you will fully recognise when j tell you that it cost the East
Suring 189^ Rand Proprietary Mines, from the commencement of 1896 up to the end of March last,
•nd to March, ^ ^^^^^ ^£ £8,204 6s. 3d. ; and I may say the greater portion of this was paid away in

^*^3SS*°of oMt railway fares, and, bearing in mind the extremely poor accommodation providea by
of tnuwTOrt of the Railway Company, the charges are outrageous. I thoroughly endorse a previous
tiberhwdsRau^ suggcstiou, that tuc ISctherlands Railway Company should transport labour for these
^^" mines at a more or less nominal rate.

The pui Law. The Pass Law is an admirable law provided it is properly administered,but, although

we have had every assistance from Mr. Mar^, the Landdrost, and Mr. Klynhans, the

Mining Commissioner of Boksburg, in trjdng to recover deserters, still the fact remains

'^New^SeinfoJf*. *'^^» ^T^ September to March, we had 245 deserters from the New Kleinfontein

teinOompMiy, Company, and not one single native was recovered. I am perfectly convinced that it

ber? iw6,**to was ucver the intention of the Government, nor did they anticipate, that such large

Maroh, 1896. amouuts of moucy would be received through fines ; therefore I suggest that the

An advisory carrying out of this important law should be entrusted to a local Advisory Committee,

aue to admin' under a responsible Government official, which, in view of the past receipts, would

teter the pms absolutely be made self-supporting. The Advisory Committee would have access to

every mine on the Rand, and womd thus be in a position to learn of the desertions

which take place, and how to counteract the same ; and would endeavour to make all

managers deem it a point of honour to refrain from engaging boys where there was a

suspicion of desertion ; and in other ways would ^adually perfect the administration,

which can only be done by establishing a thorough co-operation amongst all the mine&

^l^tem'of^Mi ■^ *^ ^^^ ^° ^ position to say how much these fines have amounted to since the law was

promulgated, but I would point out that, whereas previous to these depressed times, the

fines of boys were readily paid, latterly, in our own district of Boksburg, the gaol

has been overcrowded with deserters, who fail to procure the £3 fine, and, as there

was no further prison accommodation, the Landdrost was obliged to reduce the fine

from £3 to as low as 3d., which clearly proves how unmanageable the present method

of administrating the law has become.

TheLiquor Law So uuanimous has the evidence been on the desirability,nay,absolute necessity, in the

interests of the mining industry, of a strict enforcement of the liquor law, that further

testimony is unnecessary, but I must again refer to the assistance rendered us by

Messrs. Mar^ and Klynhans, which has gone greatly towards mitigating this pest in

our district. It is hopeless to expect, however zealous the Landdrost is, to subdue this

Kaffir eating evil whilst low kaffir eating houses and traders are licensed and permitted to trade in

cantron irc?n- the mining areas. If all such licences were refused it would greatly facilitate the

*^- duties of the authorities, and I would therefore suggest that all eating-houses and other

than respectable stores be abolished, similarly to the low canteens. For example, there

are about ten disreputable stores or eating-houses on the boundaries of the East Rand

Proprietary Mines, and it is self-evident to any business man that it is impossible for

^diS^"n^nn« them to live legitimately. At the New Kleinfontein Company, since the extension of

at the New the liccnccs, druukenuess amongst the natives has again become very serious, and from

companySi^cU 10 per ccut. to 13 per cent of the native labour is incapable for work owing to the

S?*thl£!S: effects of liquor.

Qjmunite. In affirming: the statements of Messrs. Albu and Fitzpatrick under the heading of

ihihdexoencoet Dynamite, I will simply state that the East Rand Propi*ietary Mines spent £20,506, and
Propr^iSl^ the New Kleinfontein Company £8,983 for dynamite respectively for 1896, which means

Mr. W. Dalrymple'8 Evidence. 97

that owing to this concession it has cost these two companies £10,000 and £5,000 MdNewKiein-
respectively more than it would have done under reasonable circumstances. i^im Ib^-

The question of Railway Rates has also been very fully dealt with by Messrs. Albu Bt^n^ntM.
and fltzpatrick, and I simply give you a few examples of the difference in the European
eoet, and the cost as delivered at the mines here, analysing the various charges (See
statements 1, 2 and 3.) I will now give you the details of actual cost of bringing machin-
eiv, &c, from England to Johannesburg. The statements given do not include any com-
mission which has to be paid to an agent in London for buying and shipping, neither do
they include any profit to the importer. I ma^ add that my figures are based on
actual data, and all the separate charges are detailed. Statement rio, 1 (Compressor). Price or au* com-
is for a compressor. The machine costs in England £1,269 ; by the time it 6S^ikh"cort
here the cost is £2,018 17s., or the charges come to 59 per cent, on the Home SJiit'e"lSd^**iS
cost. The rail carriage in this case is the most important item, as it amounts to no JSSJ^exSSSl
less than £383 15a lOd. By working out this consignment, I find that the Cape of chMyet.
€k>Temment Railway charges 9s. 4Jd. per mile for conveying 113,716 lbs. (which is tne
total weight of the compressor), and the Netherlands Railway charged £1 168. 5^d.
per mile, or £1 7s. lA per mile more than the Cape Government Kailway. These
Bgares speak for themselves, and I have the statement here showing all the per-
centages worked out in detail, and you will see that the rail carriage is in excess of
all otiher chargea Statement No. 2 (Rails). — This is for rails used on the mines hera
The rails cost in England f.o.b. £97 5a 8d., and by the time they are delivered here cost oi »ii8at
the <X)8t is £296 8a 2d., or the charges come to 204 per cent, more than the Home cost pr^oe, and
of the raila The rail carriage alone from East London to Johannesburg comes to hl^^ johilnn^
£158 la 2d., or 62 J per cent more than the original cost of the rails delivered on ^JJ2tiof^h»r-
steamer. Take for example : — Supposing I were to purchase a ton (2,000 Iba) of rails is^
in England at a cost (for the sake of argument) of £5, 1 should have to pay £6 15a
for rail carriage only, from East London to Johannesburg ; that is to say, the rail
carriaTO only would cost £1 5a more than the manufacturer charges for the rails, and
sometimes rails can be bought cheaper than £5 per ton. Rails are in everyday use on
the mines, and a very large quantity is used. Statement No. 3 (Carbon for retorting cwt <J^JJJ^*<>»"
pmrposes). — ^A mine with which I am connected decided to import 10 tons of carbon homepriceand
for retorting, and the cost delivered free on board the steamer was £20 exactly, or £2 2***in *joh»n-
per long ton (2,240 Iba) By the time the carbon was delivered at Johannesburg it ertrftcti^of
had cost, with charges, £132 6a 4d., or the charges were 561 per cent, more than the charges.
original Home cost The rail carriage from East London to Johannesburg was alone
£75 12a, or just over 3^ times as much as the manufacturer charges for the stuff
itself. It is surely needless for me to add any remarks with regard to these figures,
as, in my opinion, they speak for themselves only too strongly. I have given you an
extract from three costs, and shall be pleased to hand the detailed statement over to
yon if you desire it, for publication or otherwise. You will notice that I have based
all my calculations on goods coming rna East London, as this is the cheapest port for ^**Som* i>uru!n!
these fields, with the exception of Delagoa Bay (Durban rates being equal with East ^ DSwoi
London). In the case oi Delagoa Bay, the railway rate to Johannesburg upon the Sy to joham
goods I have already mention^ is £6 per ton, instead of £5 15a per ton from East "^^"*~«-
Ixmdon, but against this saving in railway carriage the following have to be taken ^p^i^^ j^y
into consideration : — route for im-

ported goods.

Increase in sea freight.

Increase in receiving and forwarding charges on account of the great difficulties
to be contended with at Delagoa Bay.

Delay in despatch.

98 Mr. W. Dalrymple's Evidence.

EUndsfontdn In having ^oods brought from the Cape ports and Natal, should you take
i«bat»?on*jS delivery at Elandsfontein, the Netherlands Railway allow you 4d. per 100 lbs., and for
piinSes "'^^ delivery at Boksburg, 2d. per 100 lbs., from the through rate to «fohannesburg. But
if you have goods brought from Delagoa Bay the Netherlands Railway will not allow
you any rebate when goods are delivered at Elandsfontein or Boksburg. I under-
stand the Netherlands Railway have been asked why this should be, but, as usual, no
explanation is forthcoming. Leaving out of consideration the amount overcharged,,
the principle is most decidedly a wrong one. Last year we thought it advi88U)le»
coetof trmnsport owing to the rinderpest, to protect ourselves by importing mealies from America, and
Du^rba^To the companics we represent bought conjointly during 1896 25,000 bags, which, after
Company.*"^* having been sown, reaped, bagged, and landed in Durban, cost 9s. to 9s. 6d.,and before
they were delivered at our siaing at the New Comet Company the cost had reached
21s. to 22s. per bag, the mileage from Durban being only 360 miles. Further comment
Reduction of is Unnecessary. Assuming, for argument's sake, that owing to it being a new line the
raiiw-ay rates, concessionaires might reasonably expect to make liberal charges during the earlier
period of its existence, but now they have got the line well ballasted and everything
is running satisfactorily, and further they have done exceedingly well, therefore it is
only reasonable to expect that the Railway Company should make marked reductions
on the rates of their own free will and accord without having pressure brought to
bear, if only from the desire to encourage traflSc over their line. In concluding my
Mining board statement, I would strongly advocate the appointment of a Mining Board made up of
ItenaSre wi' * fair representation from the leading members of the industry, who, together with
advantogeu. (jj^g nccessary Government nominees, would constitute a permanent committee for the
guidance of the Government in all matters connected with the administration of the
various laws directly concerning the welfare of this industry. In other words, the
Government should enlist the knowledge and experience of those who are not only
experts but trustees of huge interests of the European investor. Such a course would
relieve the Government oi an immense amount oi responsibility and detail work, and
would promise faithful and honourable co-operation in all matters affecting the
^m3ibSe**'r?- ^^^^^^^y> *^^ hcuce the progress of the State. A careful analysis of the figures
SSn 'kid***** already laid before this Commission will clearly prove that at least a half of the, total
trj" "* ^ number of companies at present existing are simply in the balance of profit and loss,
and substantial reforms, if granted, would immediately turn the scale, and place them
on a sound footing, and, in addition, give an immense stimulus to the exploitation of
idle gold-bearing ground.

STATEMENT NO. I.
Anai>-M8 of costs Actual cost of air compressor from England to Johannesburg via East London : —

ofalrcompres- * o o

sor. orisrinally £ 8. d. £ 8. d.

uSIwhJ^l: Cost deUvered free on board Steamer ... ... ... 1,269 0 0

Uvered in Jo- 1,269 0 0

hannesburg. «. '

Insurance

1 3 0

Freight and primaf^e to East London per steamer : —

653ft. 8ins. at 71s. 3d. per ton 40c. ft.
95ft. 2ins. at 59s. 3d. per ton 40c. ft.
392ft. at 95s. per ton 40c. ft.
131ft. 5in. at 47s. 6d. per ton 40c. ft.
119ft 6in. at 37s. 6d. per ton 40c. ft.
13:13:2: 0 at 118s. 9d. per ton 2,2401bs.
6:14:3: 0 at 71s. 3d. per ton 2,2401bs.

.Mn W. DalrympleV Evidence.

2:14K): 0 at 59s. 3d. per ton 2,240ibs.

12:5:1: 8 at 478. 6d. per ton 2,2401b8. ... ...

.9:2:19 at 37s. 6d. per ton 2,2401b6.

• • • • • •

Entaries and stamps at East London

Wlmr&ge at East. London, £1,'269; add' 5 per cent., £63 '9s. ;
total, £1,332 9s. ; 10s. per cent. .., - •••

Orinag&'.at EastJLondon» 72 tons at 6d. per ton
Forvrarding and. receivu^g at East London, 72 tons at 2s. per ton

Bail carriage from East, London to Yereeniging : 113,7161bs. at
56. Id. per lOOlbs., •*... •... • ... -...

Kail. carriage from 'Yereeniging to Johannesburg r 113,7l61bs.
iit Is. 8d. per lOOlbs.', total 6s. 9d

• ■ ... — . . ...

Transvaal duty: £1,269, add 20 per cent., £254, total £1,523,

IJl per cent.. ... ......

-Transport to Mine : 80,500 (being over 30001bs. each package)

at 3d. per lOOlbs. ... .,/

£ 8.

8 16

32 1

1 0

d.
0
1
0

£ 8. d.

■*— »-

295 6 1

0 10 6

6 13 3

1 16 0

7 4 0

16 0 0

289. 0 7
94 15 3

22.16 11
10 1 3

383 15 10

32 18 2

£2,018 17 0
THe above does noi include London agent's buying and shipping commission.

Total costdelivered
Home cost

Total charges ...

£2,018 17 0
1,269 0 0

£749 17 0

Or 59 per cent, total charges on Home cost.

Percentages made up as follows : —

Insurance

Freight by sea...

Coast charges ...

C.G.R. rail carriage
Netherlands da

Transvaal duty

Transport

If per cent.
23 J

H
22i

Peroentages of
charges on
honM ooit of
air oomproMor

• }30i

per cent.

59 per cent.

• Kail carriage on. whole consignmeni':^ —

Per Cape Government Railway : 615 miles, at per milei
Per Netherlands Railway : 52 miles, at per mile ,..

... 0 9 4A OomparlBon of
... V 9 'Sf mtei of Cape

1 16 f)l >^°<^ Nether-

for transport

Showing that the Netherlands Railway charged £1 7s. Id. per mile more than the Cape pressor.
Qovemment Railways. (^Tbifl is calculated on total weight, viz.^ 113,71611)8.)

100 Mr. W. Dalrymple's Evidence.

^y*?L2«* STATEMENT NO n.

of imOs orig-
in EngUmd, Actual coet of rails from England to Johannesburg via East London : —

whtn deliver- ^ j ^ j

ed in Joluui- £ s. o* £ 8. CL

nciimiv. Cost of rails delivered free on board steamer ... ... 97 5 8

97 5 8

0 13 10

34 13 1

Insurances ... .** *.. ... ... ... 0 13 10

Freight and primage to East London per steamer ... ... 34 13 1

Entries and stamps at East London ... ... ... 0 10 6

Wharfage at East London, £97 5s. 8d. : add 5 per cent.,

£4: 178. 3d. Total, £102 2s. lid., 10s. per cent. ... 0 10 3

Cranage, 23j^ tons at 6d. ... ... ... ... 0 11 9

Forwarding and receiving, 23^ tons at 2s. ..» ... ..* 2 7 0

Railway carriage from East London to Vereeniging, 46,8321bs.

at 5s. Id. per lOOlbs. ... ... ... ... 119 0 7

Railway carriage from Yereeniging to Johannesburg, 46,8321b6.

at Is. 8d. per lOOlbs. ... ... ... ... 39 0 7

£ 8. d.
Transvaal duty ... ... ... 97 5 8

Add 20 per cent. ... ... ... 19 9 2

116 14 10 H V'<^' 1 1^ 11

3 19 6

158 1 2

£ 8. d.
Total cost delivered ... ... 296 8 2

Home cost of rails ... ... 97 5 8

1 14 11
£296 8 2

199 2 6 or 204f per cent, total charges on Home cost.

PeroentAire of The rail carriage in the case of rails is 62 j^ per cent, more than the Home cost of the
on h^e'ooet goods themselves, delivered free on board.

ofndlt. £ s. d.

Rail carriage ... ... 158 12*

Home cost of rails ... ... 97 5 8 •••

Difference ... ... £60 15 6 in excess of Home oost.

STATEMENT NO. nL
Anaivris of cost Actual cost of retort carbon from England to Johannesburg, via East London : —

of importation
of caroon.

Cost of carbon delivered free on board steamer
Insurance

..•

Freight and. primage to East London per steamer, 10 tons at
60s. per ton

Entries and stamps at East London

Duty at East London, £20 ; add 5 per cent., £1. Total, £21,
5 per cent. ... ...

£ 8. d.
20 0 0

£
20
0

8. d.
0 0
4 10

0 0

0 4 10

33 0 0

0 10 6

1 1 0

Mr. W. Dalirymple'8 Evidence. loi

£ 8. <L
WhttrCage at East London, lOs. per cent ... ... ... 0 2 1

Cranage at East London, 114 tons at 6d. per ton ... ... 0 5 9

Fbrwardiag and receiving 111 tons at 2s. per ton ... ... 13 0

3 2 4

Bail carriage irom Bast London to Vereeniging, 22,4001bs. at

68. Id. per lOOlbs. ... ... ... ... 56 18 8

Sail carriage irom Vereeniging to Johannesburg, 22,4001b8. at

Is. 8A per lOOlbs. ... ... ... ... 18 13 4

75 12 0

duty ... ... ... £20 0 0

Add 20 per cent ... ... ... 4 0 0

1^ per cent. ... ... ... £24 0 0 0 7 2

The above does not include London agent's buying and shipping commission.

Total cost delivered ... ... £132 6 4

Home cost ... ... ... 20 0 0

0 7 2
£132 6 4

£112 6 4
or 561^ per cent, total charges on Home cost.

The railway carriage in this case is the most important item, it being 278 per cent, more OanpMiioo of
than the Home cost of the carbon itself delivcnred on board steamer. tim^toiiSofoft?

bon and imil-

Rail carriaffe ... ... £75 12 0 over 3} times as much as the carbon wi^ ntei on

^ * < . -n « 1 the same oon-

Home cost of carbon... ... 20 0 0

cost in England. tiffnment.

£55 12 0 in excess of Home cost.

Chairman.

How many white labourers have you had on the mines these last few years ? — Reduction of
Two years ago they were about 500 ; now they are reduced to 250. ^n **Siin«^S

What is the reason for that ? — Principally on account of curtailing works, piJg52?^!^.'
owing to some of the companies having run short of money. I would just point out
that our district is a new one, and most of the mines are in the development stage.

So far as I can gather from your statement, all your mines are payable except ° Fi*nSj.F2gS2;
one ? — No; what I do say is, they are all considered low grade mines except one. group of mines

How about your black labour ? How many had you a couple of years ago, and ^^"^iJ^biSr'*
how many have you now ? — About 8,000 previously, and this number is now reduced
to 4,500.

I understand that you do the same amount of work with less quantity of labour,
because the mines have been opened up ? — No ; there has been a curtailing of con-
•truction work.

Mr. de Beer.

How long have these mines been in existence ? — Only for the last five years ; of
eoarse, in the early days they had been prospected, but they were practically
dcmnant.

What is your cost of producticm per ton?-:— We have only two mines running worwngooeteoi
just now in the shape of mulmg — ^the New C!omet, the Angelo— and the EQeinfontein m^ab^^^

102 Mr. W.< Dalrympl^*8 Evidence.

started on 1st April. We have not got the costs from the Kleinfontein ; for the other
two the average is somewhere about 27s. 6d. to 30s. per ton.

Was this the price of Ubour in the year 1891 ? — These minea were not crashing

in 1891.

When did tte mines begin crushing ? — ^The Angelo only about a month ago ; the
New Comet has been crushine regularly for about six months.
^an?iwi. ^^ Have wages gone up or dpwn since 1891 ? — ^I should think they have gone up a
little on the average.

( Yo]tt have got no figures here ? — No ; but I consider wages have gone up in this
way. Higher wages were paid higher officials. During the jexcess inflation of two
Wages in 1895 years ago, there was a considerable demand, for expert labour, and groups were in-
*° dhied to compete for labour ; but that, I think, is gradually coming down again.

Then two yeats ago labour was paid higher than* now ? — A little ; though I think
they are certainfy attempting to reduce wages.
^^di807 ^^ r? hot labour much more plentiful now than then? — I don't consider good
*° labour is.

Still it is more plentiful ?— Yes.

^iSsiSTiaw ^ regards native labour; it is surely cheaper and more plentiful than two years

* a^ ? — Yes ; and I think it is gradually being brought to a better quality. To my
mind, the great trouble is due to the " baa " boys we have been getting.
R»iiw«yc»rri»ge How about railway carriage ; is that higher than two years ago ? — A little less.

chinerylniw And machinery has been very much improved? — ^There is a very much better class
and in 1806. ^f machinery.

So all these matters have changed in favour of the mines ? — Yes ; but the mines
'are being worked on a larger scale, in which case they require larger machinery,
which has been perfected from time to time,
woridng^ con- Therefore, I may conclude from your evidence that the mines work under more
mines in 1807 favourable conditions than was the'case two years ago ? — Somewhat more favourable.

How is it that only several mines, and not all of them, are benefiting by better
machinery and cheaper labour ? — I think they are all benefiting by better machinery

How do you account for the circumstance that at the present moment several
mines do not pay, whereas two years ago they did pay ? — I think that two years ago
mines were worked with the expectation of them being able to pay ; but latterly the^
have got rid of their working capitals, and naturally the only course open to them is
to cuHail work for the time being, and at the same time entertain the hope that they
will get facilities for cheaper working.

Over • valuation But how is it they wcre disappointed in thesis expectations where the circum-
oi^minea in g^^gjj^g j^^^y^ j^j^^ proved ? — I think they over- valued tne mines in those days, and

expected better returns than they have actually had.

Trandt dues on What are the transit dues on machinery in Cape Colony ? — There are no transit
machinery, j^^ ^^^ machiuciy to the best of my knowledge.

Not to your knowledge ? — No ; I don't think so.

All the figjires given here by you, are they all charges in connection with the
machinery ? — They are absolutely taken from shipments.
^ma^Deiy. ^ Where do you buy your machinery ? — It is bought in England from different
people, and in America.

Do you get a free hand to order where you like ? — The directors order all the
machinery.

Do you have a free hand ? — ^Yes. The directors have full power, with the recom-
mendation of their managers.

Mr. W. Dailympie's Bvidehce/ . 103

You say that the lodging-houses, or rather the eating-houses, interfere with the EaUng houiee
carrying out of the Liquor Law ?— Yes. jBdtheUqnor

That liquor is smuggled into these houses and sold there ? — Yes. It must be
served up in the shape of soup or some such thing.

You mean that m the vessels in which soup ought to be served, liquor is served ? —
Yes. It is probably made up in some way.

Have you any suggestion to make in order to reduce this evil ? — Wipe them out
of the place.

How do they get their licences ? — They get their licences through the official&
The Boards grant them.

What cmss of people usually keep these boarding-houses? — I should say BussiaQs,
as far as I know, but I do not have much to do with them.

As regards the Pass Law, I understand from you that it cannot be very well ^ J/JhSSTS?"*
carried out ? — ^No.

That one of your rea£K)ns is because the gaol is too small ? — The gaol is too small,
but there ought to be separate compounds for deserters, so that people could go in and
see them.

Then you can go to the gaol and see the deserters there ? — I suppose so. But so
far as I am concerned, and most people, it is. a very difficult thing.

It is probable that many of these deserters find their way to gaol ? — Quite
possible.

Then you say that the exacting of a fine of 3d. — less than the maximum of £3 —
by iiie magistrates has filled the gaols ? — That is so j it has taken place. If the fine
were kept up to £3, it would not pay a boy to desert

Chairman.

How do you reconcile these two facts — that out of 200 and odd deserters, not one
came back, and yet the tronk is full ? — Of course, we made the formal application to
the officials, to the effect that we had lost these boys, but we never ^t them back.
The fact is, I don't think the administration is defective in this way ; Uiere are merely
not sufficient officials to carry out the law. There appears to be a great deal of
anxiety amongst them in Boksburg to assist us, but there are too few to carry out
the iivork.

Who should know the kaffir best — the police or the former master ? — Naturally,
the compound manager.

Now, within your knowledge, has it ever been tried by the compound manager
to go to the gaol and try to find the boys ? — Yes, they have, but could not recogmse
them.

Then your argument would fall to the ground.

Mr. Smit

There is really very little reason for complaint when so mamr kaffirs get to gaol? —
We take a great deal of trouble to get deserters ourselvea We get some back from
other minea The probability is, very few get to prison at all.

You do not know, not having been to gaol to see ? — I have not been there, but
our compound manager has.

But you think that they don't know them individually ? — It is very difficult to
know them individually where you employ thousands of kaffirs.

You get back some from other mines. Did you fetch them yourselves ? — Yes.
We heard it from other boya

104 Mr. C. 8. Ooldmann's Evidence.

Did yon get any boys back through the efforts of the officials ?— No ; but I say
they are verjr good.

It is quite possible that some of these boys of yours may be in gaol ? — ^Not at ttie
present time. It happened some time am, but I don't think they ever reached gaoL
They may have got mto other compounds.

How can you say that if you do not send someone to the gaol, and if you do, h»
does not know them. You said that, of all the deserters, you got none back ? — ^Not
of the 246.

Mr. Hay.

imnditura of Can you tell us how much money the East Band Proprietary Mines have spent ? —
■rtSS^taS Since they started ? In everything ?

Yes ; in everything. — I should think it would run into a million and quarter of
money.
'^ISS'b'Siit They have not paid any dividends ? — No. They have not reached that stage yet
rmki ]^ri- Is there no immediate prospect ? — Not Immediately. Probably some time next year

Mr. de Beer.

onde of New How many dwta do the various mines average? — The Comet about 9^; th&
Sni^o Min«k Anjgelo for the past two months would average about 12| or 13 dwts. It is what we
calfour rich mine.

Mr. BraJchan.

Pero«ati«« of Can you inform us how much of this money, the million and a quarter, has been
M wpeixuitore spcut ou the vaiious articles which have been brought here by the railway ? — I could
Prop?i«%^ get that for you. I have not got it here.

Mtnet. It woula be interesting to get to the conclusion how much has been paid to

the Railway Company, in order to find out that if the rates had been lowered, say,
26 or 80 per cent, how much less working capital would have been requiired to do the*
same work ? — I will get it for you.

Chairrfiom.

WKite w»ffti. As regards the labour, you here state it costs £24 or £25 per month. Do yoti in-

clude in that directors' fees ? — Yes, everything ; the charges of the London office as welL

M^-^8, ooM. Mr. Charles Sydney Goldmann was called. He said : —
1^. *^ " I exceedingly regret having to say that the statement which I have in preparation
is not complete for distribution, but I hope it will be to-morrow, in English as well
as in Dutch.

I beff to respectfully state that I came to the Witwatersrand in the first month of
1888, ana have more or less been on the Rand from that date. I have been connected
in business associated with the mining industry from the date of my arrival I have
been connected with companv work K)r a considerable time ; I have been interested
in the formation of gold-mimng companies ; I am chairman of 12 mining companies ;
I am a member of the Boards of numerous companies, including several dividend-
paying companies and a good many producing companies ; I have oeen connected with
financing, and claim to have gained experience during my sojourn in England ; I am a
member of the Elxecutive Council of the Chamber of Mines, and also a member of the
Native Labour Association. I am the author of two issues of the history of these
fields, and also the compiler of a map of the Witwatersrand and neighbouring groups
of mines. I have been a witness of the prosperity as well as the vicissitudes of the
industry. My firm is representing very considerable interests in this State, including
interests in mining propaties, as iSso real estate, I therefore sulnnit to your kind

Mr« C S. Qoldmann'8 Evidence. 105

eoomderation the evidence I am aboat to give, evidence which I feel is given entirely
unfaiafised, inspired by wishes onlv calculated to benefit the mining industry collectively,
and the interests I represent, individually. In trying to arrive at an explanation of
the depression which nas overtaken an industry which generally is acknowledged to
combine all the elements requisite for success and proM)erity, with a view to bringing
about relief it is necessary not onlv to examine the circumstances which led to the
acknowledgment of its potentialities, but to cast a retrospect of the general conditions
mider which the industrr sprang into existence, and the various vicissitudes which it
flinoe has undergone, and to investigate all the defects and disabilities which have
oontributed to uie present state of afiiiirs. The reasons which, in my opinion, have B«Moot for io
attracted the attention of the public, as also the commercial mind to this country, as ^^^^
also the application of vast sums of capital to investments in it, or connected with its w&tenmid.
iwources, is directly attributable to :— <1) The discovery of the Witwatersrand Gold-
fidds under circumstances hitherto unknown in the history of gold mining ; the gold
oeenrrin^ in unique deposits which, in their uniformity of character, resemble coal
beds ; (2) The exceptionally favourable conditions prevailing for mining, including
sudi as a salubrious, exhilarating climate, periodical rainfalls, easy approach from the
sea, and extensive coal deposits m close proximity ; (3) The world's scarcity of gold,
and the increasing production of gold in this country — the production for the years
1884 to 1895, inclusive, yielding 9,749,170 oza, having a value of £33,730,427 ; (4) The
stability of returns of some of the leading companies ; (5) The aggregate of dividends
paid up to the end of 1895, which amounted to £7,408,371 ; (6) The confident and
sanguine opinions expressed by geologists of highest repute, and mining authorities
notably emment ; (7) The confirmation of their opinions by independent reports made
at the instance and on behalf of foreign Governments ; (8) The complete record of
results and the comparative facility of obtaining information and statistics, as also the
facility afforded of inspecting the mines. All these circumstances led to a considerable
concentration of attention from outside, and an inflow of capital to these fields, which
culminated during 1895 in an unequalled and unprecedented state of universal com-
mercial prosperity. This, however, was of comparatively short duration. An acute
reaction set in, which did not fail to mark in manifesting itself most detrimentally,
not only so far as the investing public was concerned, but also to the actual develop-
ments of the fields. This conation of depression, instead of abating, has become
accentuated, and it is therefore necessary to enquire into the causes of the depression,
which, in my opinion, are : — (1) Withdrawal of capital ; (2) Disappointment to inves- ^^^^^ ^^ ^,
tors; (3) Over-estimated value of the richness of the reef; (4) Under-estimated cost present de
of equipment of mines; (5) Unsatisfactory condition of the native labour market; p""°"'
(6) Extreme taxation to which the mining industry has been subjected ; (7) Inefficient
athninistration of laws primarily designed for the benefit of the industry ; (8) Feeling
of distrust and want of confidence on the part of the investing public ; (9) The relaxing
influence on the energies of those responsible for the maintenance of the industry, due
to feelings of discouragement in failing to enlist the necessary co-operation of the
authorities in matters frequently requiring immediate attention, relief, or assistance.
That the causes are real is manifested by the fact (1) That many developing and
promising companies are stopped for want of funds ; (2^ That a change of sentiment
has taken place in the minds of European capitalists, who, for the time being, are
mdisposed to embark any further capital in these fields ; (3) That the average yield
of ore crushed during latter years as compared with former, has decreased ; (4}) That
the total equipment of mines is shown to be far in excess of original estimates,
sufficiently proved by the fact that the actual cash spent in mines exceeds, in many
instances, four times the total original capitalisation ; (5^ That the companies have for

106 Mr. C :S, Qdldmaifii's Evidence: ^

Uieir requirementfi been obliged to purchase* native labour at great cost and exp4
to themselves, outside of the high cost for actual work done ; (6) That the induatc]
subjected to unnecessary taxation, to which it is only necessary to refer to the taxaii
under the head of railway rates, dynamite, and duties ; (7) That a universal compli
has been raised by all mining companies and their representatives of the inemd
administration of such vitfd laws as the. Pass. Law, Liquor Law, Gold Thefts ]jf
(8) Of the great depreciation in all values, and apparent apathy on the part of inji
tors and capitalists in spite thereof — the acknowledged effect in Europe of the 14
and settlement of the Bewaarplaatsen question ; (9) By the difficulty experiencfe^
effecting united and energetic action in questions involving spirited co-operoti
Having classified the causes which in my opinion have led to the depression in
mining industry and its necessary reflex on trade, I will now refer to the rem€

^"n^int^'de^ ^''^^^ng of Confidence amongst European investors, for which purpose the loyal ;i
prearion. activc co-opcratiou of the Government is necessary. On the part of the Govemipc

^o^p'eTrtio^ suggestions for the better working, made on behalf of the mdustry, should in.
neceasary. opinion havc their friendly and prompt attention, and be considered as dictated ia
best interests of the industry and the country. Reference to the reports dt.
Chamber of Mines will sufficiently prove that in the past this has not been the c

Relief required. Having gaugcd the couditious existing and required to make a commercial succec
mining on these fields, careful study of economy in every department is necessarjr
order to effect the largest possible margin between revenue and cost, with the v^
equipments of the hi^est class to assist in such economy. Granting of every f aes
for introduction of native labour by providing cheap means of access and protea
on the way, and holdin^out inducements for the permanent residence of trap
labour on these fields. Removal of disabilities in every case where it can be sbp
that unnecessary burdens are placed on the industry. The proper administratio::
all laws with the assistance and co-operation of the representatives of the indiu
To make every endeavour to justify every appreciation of values by actual resultc
After this general statement I will now endeavour to enter into a more detiJ
statement of those burdens and disabilities which affect the industry, the removes
which will afford speedy relief and redress. I will begin with the Pass Law. .

Pats Law-reas- ucccssity of having a control over the natives, the necessity, too, of insuring a biiB.
ons for. contract between the mines employing native labour and such employees, the necM
also of affording complete protection to the natives coming to and going from,
goldfields, induced the heads of the mining industry to frame a law which was int^J
to cover these conditions and requirements — a law which in their opinion was to
mutual satisfaction to the Government, the employer, and the employee,
necessity for this law dates back as far as 1893, when representations were ma-C
the Government to give effect to it. In spite of all the petitions and deputation
was not until October 3rd, 1895, that the proposed regulations became law, and ib

origrinated by uot Until May, 1896, that it became actively operative. In connection with thia
n^ing Indus- j ^jgjj ^ poiut out that it camc into existence at the request of the mining indufi
that the law was framed by certain persons connected with the mining industry ;
it was the mining industry that solicited the Government to administer the laV
was the mining industry that suggested to the Government to pay consideratioi
the proper carrying out of the law. As you are aware, prior to the passing of

AppHcjtion of law the pass fee per month was la It was increased in order to meet the reqT
mente oi the proper administration of the law, and a further sum of Is. per heaO>
agreed upon by the Government Commission and the industry, which was to bo
plied solely to the administration of this law, as will be observed from the draft
which was approved by the Government Commission. The law as passed doe<

liftra-
.i«Law

ts of

Br of

■• to

>f fles
PatB

of PM-

uedf in
lesbaiv
^prii;
Bfarcb,

lumber
I regrf»-
under
AW in
esburg
and
i fnnn

lumber
reyie-
under

aw in

3 die-
rev
>m|iae

lumber
regit-
under
*w in
sdorp
. and
t from

nberof
^ter-
. totol
t from
and
annual
liture

110 Mr. C S. Qoldmann's Evidence.

under Pais intention of the law is to have a hold on the native whom we have brought down, be

it from the East Coast, South, or from the North, at a considerable outlay to

ourselves, but experience has shown that the law is broken with impunity, that the

boys desert, that the money spent in bringing down these boys is lost, and no

dectection of their desertion is effected. I have gone to the trouble of ascertaining

from 33 companies a statement (see Statement B), which I append, showing that

since the Pass Law came into operation no less a number than 14,000 boys deserted

out of a total of 19,000 monthly employed by the companies, without a single one of

those deserting natives being brought back to the mine, or at least brought to justice.

^^ natite'^b^ Now, I wish to poiut out to you that this pass fee is not the only amount which adds

our. to the expense of native labour, but it is the cost of bringing these boys to the mines,

which money is all lost if the boys desert. I i^vill ^ve you a few instances which

come under the category of companies I am interested in : —

^2to«-i<5SS WoLHUTER Gold Mines. — Our total premiums for securing natives for the year

Sm^lS^ms ^^^^ amounted to £2,520 13s. 4d. ; the boys refunded £234 68. ; and the net loss to

and 1896. this Company upon premiums, owin^ to desertions, amounted to £2,286 7s. 4d. For

1896 the figures are much more alarming, though during that year the law was

already in operation. The sum expended on procuring natives was £6,577 3s. 3d.,

of which £1,129 12s. 7d. was refunded by tx>y8, causing a loss to the mine of

£5,448 10s. 8d. The total number of boys employed averages 1,105 for 1895, as

against 1,641 for 1896.

minSt ']^n TREASURY GoLD MiNES. — We paid premiums for securing boys in 1896 to the

^^'i^'' amount of £3,116 lis, ; £453 188. was refunded, and there was a net loss of

£2,662 13s. llie average number engaged by this company was only 369.

^% SlIJJ- Bantjes Consolidated Mines. — Premiums paid, £601 ; refunded, £72 ; net loss,

S!!S^o*!f^"^^ £528.

vogeiitniis Con- VoGELSTRUis CONSOLIDATED Deep. — £345 paid in premiums, £150 refunded,
-"i^o*??^? £195 lost, 194 boys employed,
thrwigh dcs- J ij^ve a statement (see Statement C) from several companies, which shows the

of lecom- actual losses in premiums. Five companies in 1895 lost £4,531 ; in 1890 sixteen
miumsfor^^' Companies lost £25,333 ; and four companies in 1897, £2,897.

tive labour. Thesc are examples of direct losses, actual losses which the companies sustain

uw good, \7ith0ut any means 01 recovery. I respectfully submit that the law is a good, though
intricate one, and a law that, under good administration, is easily operative. But I
think you will admit that in order to handle the inflow and outflow of 120,000
natives, and to have a control over them, requires more than 30 officials. I think it
is wrong to attach blame to one officer in particular, and I say that with the ma-
chinery at his disposal it is impossible to administer the law satisfactorily.
^'mentbSSJdfor The administration of the laws, such as the Pass Law, the Liquor Law, and Gold
SSJJioryftlSl Thefts Law, should, in my opinion, he vested in a Local Government Board assisted by
•adOoidThefts an Advisorv Board of the representatives of this industry. It would certainly be
AdrKrj' board, preferable if the Government have representatives of the mining industry constituting
*Sf m^Sj^^\n" ^ section of this local incorporated Mine Board, which would bring them into closer
dwtfy on local touch with the officcrs of the Government, who would thereby more readily under-

government .i, • 1 p it » ^

tooawi. stand the requirements of the industry,

liquor ^^^- After endlcss deputations, petitions and memorials, a Liquor Law was introduced

opera on o . ^^^ brought iuto Operation which met with the approval of the mining industry, and

which was expected to compensate for all the worry and trouble which had been
undergone, and be a boon to the industry. Immediately after the introduction of the law
the beneficial effects of it were largely felt, and satisfactory reports were forthcoming
from various mine managers. This state of affairs, regretably, was of too short

Mr. C S. OQldmann*8 Evidence.

Ill

RETURN SHOWINC DESERTION OF NATIVES

Fn/m, 33 Companies only, since the Paaa Law carne into force ; Average Monthly
Desertion, Nvmher of Boys Engaged cmd Discharged, amd average

requirement for Month,

COMPANIES.

• • •

Aurora West
Bonanza
Chimes West
Champ d'Or

Crown Deep

Crown Reef ,

City and Suburban

Glencaim

Ginsberg ,

Grey's Mijnpacht ,

Geldenhuis Deep

Geldenhuis Main Reef

Glen Deep

Jubilee
Jumpers

Knight's Deep

Meyer and Charlton
Modderfontein Extn. ..,
Minerva

New Unified

Nourse Deep
New Heriot

^New Florida

New Rietfontein

Boodepoort Central Deep
Robinson ...

XMJcK? MJ^SKiVj ... ... •••

Simmer and Jack Ease ...
Simmer and Jack West ...

Treasunr

Vpgel. Consolidated Deep

Wolhuter

West Roodepoort Deep ...

No.

leftdnriog
moDth

FcbrnAiy,
1897.

6
62
59
65
43
30

8
91
20
25
26
44
31
14
12
44
12
18
42
11
40
12
72
67
44
50
94
10
55
11

1.171

No.
engaged

put
monsh.

277

238

165

220

206

116

119

142

447

133

100

205

151

111

140

3,596

Next
month's
require.

mente.

300
0
0

200
0

250

200

300

400
0

100

153
0
0

200
50

...

2,273

Desertions

since
Pus Law.

160

207
174

43
120

1,328

272

160

270

?
?

600
35
667
120
118
100
270
606
150
440
13

1,600
300
137
500

1,924
516

1,540
26

12,355

Desertions
monthly.

40
20
20
14
10
?

147
23
20
10
90
12
?

100
43
14
70

190
40

140
9

66
average

* No Pass Law in that district.

Average Total Deaeition, 426 per Company ; Average Desertion Monthly, 55 per

Company.

Kerned}' '
preeeut
prearioi

Governm*
ope r
neceeea

Relief re

Pass lA
omfc

i»ri^i
mini
try.

Applic

Mr. C. S. Qoldmann*s Evidence. : 109

separate the application of the 1& per head, as originally understood, but simply '
enacts that a 2s. tax is to be imposed. It was understood that these pass fees were
to be applied to the administration of the law, as insttoced by interviews with the
Government {Chamber of Mines Arinual Report, 1894, page 61), and not to add to the
revenue of the Budget, as stated by a member of the Government in the Volksraad on
February 2, 1897. I regret to say that the law has not been administered eflFectively. Maudminii tra-
it is not for me to say to whom the blame attaches, but it is only justice to the head ^*°"°'**^^^
pass officer of the Johannesburg department to state that, in my opinion, he is not at
fault, as stated by a previous witnesa Continual complaints were being received by
the Chamber of Mines of the ineffective administration and operation of the law, and
an interview was arranged with Mr. Koch, who explained the impossibility of giving
satisfactory effect to the law with the machinery which was placed at his disposal.
He suggested, and it was agreed, to form a deputation to wait on the Minister of Mines compiainta of
and the Government, and to urge on them the necessity of increasing the staff Mines «• to
necessary for the proper administration of the law, as also to alter some of the def ec- ***^ ^^
tive clauses in the law. In making the statement which the Minister of Mines made
before this Commission, in respect to any dereliction on our part in not having
presented matters to him, I think he must either be unaware of the circumstances or
they must have escaped his memory, inasmuch as I formed one of the deputation who
waited not only on the Acting Minister of Mines, Mr. Kleynhans and Mr. Liebenberg,
but w^e also meant to interview the Government, who, however, were unable to see us
that day. The Acting Minister of Mines suggested that we should send in a petition
of our requirements in effecting the better working of the law, which we did, as per
our petition. To my knowledge, the only result of this petition was the fact that
the law was altered in the Volksraad in December, increasing the fines for increase of fl es
desertion from 10s. to £3 ; the increase in the fine, it is true, was made at our lUJ
request. I now propose dealing with this law. As you are aware, the only districts
in which the pass law is proclaimed are Kjugersdorp, Johannesburg, and Boksburg,
each of which is administered by a pass officer and his staff. I have statistics to Number of pas-
show that from April, 1896, to March, 1897, no less a number than 574,000 passes 3ohi?n^ure
were issued in Johannesburg, the average registration for March having been 63,000 ISJ^tolfiirch^
nativea The revenue from these passes at 2s. per head per month I estimate as i8»7.'
giving £57,000. This sum is exclusive of fines which have accrued by reason of Average number
desertion and arrear of passea I will take the cost now of the administration of the Jj^^^^ ,J^
law in this district. I take my figures from the Staats Almanak, which show that, J^nJ^^ur^*
exclusive of the pass officer, there are three pass inspectors, one responsible clerk, district ani
and eleven clerks to administer the law, at a total cost of £5,760. As near as I can "^'®°"® '^^

get it, the average number of boys employed in the Boksburg district is 44,000, giving Average number
an approximate revenue with " reis " passes of £52,800. The machinery to administer Jlr^^^ uSSl?r
the law in that district consists of one pass officer, two pass inspectors, one respon- eXbur^dii^
sible clerk, and four clerks, at an annual expenditure of £3,350. In the Krugers- tnct, avSt rev
dorp district I have ascertained that there are an average of 18,000 natives, giving an ^* romiias
approximate revenue of £1,800 per month, equal to £21,600 per annum, besides a sum ^o*f"S>y?^Sa-
of from £300 to £400 per month derived from " reis " pttssea This sHives a total of ^red under

X * -^ ^, PftjM Law in

£25,000. The staff in Krugersdorp consists of one pass officer, two inspectors, one Km^ersdorp

responsible clerk, and three clerks, at a total expenditure of £3,050. Therefore, ^enue frSm
approximately, the number of registered natives at the mines, according to what I Totof ^mber m

have been able to ascertain, amounts to 120,000, with an approximate revenue to the boys rt-gister-

country of £150,000. Against this the total pass administration was £12,160. revenue froSl

Gentlemen, I should not raise this question for the sake of the money if the law were g^^* ^^^^

carried out in the spirit in which it was intended. I may mention that the whole expenditure

110 Mr. C. S. Qoldmann's Evidence.

under Pais intention of the law is to have a hold on the native whom we have brought down, be

it from the East Coast, South, or from the North, at a oonsiderable outlay to

ourselves, but experience has shown that the law is broken with impunity, that the

boys desert, that the money spent in bringing down these boys is lost, and no

dectection of their desertion is effected. I have gone to the trouble of ascertaining

from 33 companies a statement (see Statement B), which I append, showing that

since the Pass Law came into operation no less a number than 14,000 boys deserted

out of a total of 19,000 monthly employed by the companies, without a single one of

those deserting natives being brought back to the mine, or at least brought to justice.

^ mSiJe'^bi Now, I wish to poiut out to you that this pass fee is not the only amount which adds

<^'* to the expense of native labour, but it is the cost of bringing these boys to the mines,

which money is all lost if the boys desert. I i^vill ^ve you a few instances which

come under the category of companies I am interested in : —

^^^'iSriicSSS WoLHUTER Gold Mines. — Our total premiums for securing natives for the year

ti^S^^*5 ^^^^ amounted to £2,520 13a 4d. ; the boys refunded £234 68. ; and the net loss to

ftod 1896. this company upon premiums, owin^ to desertions, amounted to £2,286 7s. 4d. For

1896 the figures are much n\ore alarming, though during that year the law was

already in operation. The sum expended on procuring natives was £6,577 3s. 3d.,

of which £1,129 128. 7d. was refunded by Iwys, causing a loss to the mine of

£5,448 10s. 8d. The total number of boys employed averages 1,105 for 1895, as

against 1,641 for 1896.

min«? -i^Eis Treasuey Gold Mines. — We paid premiums for securing boys in 1896 to the

g^o'^^j';^'- amount of £3,116 lis,; £453 188. was refunded, and there was a net loss of

£2,662 13s. The average number engaged by this company was only 369.

^fil SSJ^- Bantjes Consolidated Mines. — Premiums paid, £601 ; refunded, £72 ; net loss,

SStton^'**" £528.
vogeiitruis Con- VoGELSTRUis CONSOLIDATED Deep. — £345 paid in premiums, £150 refunded,

- 1*0 8 8 e 8 £195 lost, 194 boys employed.

torough dca- J h^vc a statement (see Statement C) from several companies, which shows the

of lecom. actual losses in premiums. Five companies in 1895 lost £4,531 ; in 1890 sixteen
miumsfor^' Companies lost £25,333 ; and four companies in 1897, £2,897.

tive labour. Thcsc are examples of direct losses, actual losses which the companies sustain

uw good, without any means of recovery. I respectfully submit that the law is a good, though
intricate one, and a law that, under good administration, is easily operative. But I
think you will admit that in order to handle the inflow and outflow of 120,000
natives, and to have a control over them, requires more than 30 officials. I think it
is wrong to attach blame to one officer in particular, and I say that with the ma-
chinery at his disposal it is impossible to administer the law satisfactorily.
^^ntbSmffor The administration of the laws, such as the Pass Law, the Liquor Law, and Gold
SSquorlpMBi Thefts Law, should, in my opinion, be vested in a Local Government Board assisted by
•ndOoidThefti an Advisorv Board of the representatives of this industry. It would certainly be
AdrKty board, preferable if the Government have representatives of the mining industry constituting
*SF'iSSSi^^k[? a section of this local incorporated Mine Board, which would bring them into closer
dwtfy on loctj touch with the officers of the Government, who would thereby more readily under-

ffOTernment .i, • i p i^ * ^ ±

DOMd. stand the requirements of the industry,

uqaor La^^- After endless deputations, petitions and memorials, a Liquor Law was introduced

opera on o . ^^ ^ brought into Operation which met with the approval of the mining industry, and
which was expected to compensate for all the worry and trouble which had been
undergone, and be a boon to the industry. Immediately after the introduction of the law
the beneficial effects of it were largely felt, and satisfactory reports were forthcoming
from various mine managers This state of affairs, regretaoly, was of too short

Mr. C S. OQldmann*8 Evidence.

Ill

RETURN SHOWINC DESERTION OF NATIVES

from S3 Companies orUy, since the Pass Law came into force ; Average Monthly
Desertion, Nurnber of Bays Engorged and Discharged, omd average

reqwirements for Month,

COMPANIES.

• • •

• ■ •

Aurora West
Bonanza

Chimes West

Champ d'Or

Crown Deep

Crown Reef

City and Suburban

Glencaim

Ginsberg

Grey's Miinpacht

Geldenhuis Deep

Geldenhuis Main Reef

Olen Deep

Jubilee
Jumpers

Knight's Deep

Meyer and Charlton
Modderfontein Extn.
Minerva
New Unified

Nourse Deep

New Heriot

•New Florida

New Rietfontein

Roodepoort Central Deep

Robinson ...

Rose Deep ...

Simmer and Jack East ...

Simmer and Jack West ...

Treasury

Vogel. Consolidated Deep

Wolhuter

West Roodepoort Deep ...

• • •

No.
left daring

month
Febmaiy,

1897.

0
42
11

6
62
59
65
43
30

8
91
20
25
26
44
31
14
12
44
12
18
42
11
40
12
72
67
44
50
94
10
55
11

1,171

No.
engaged

put
month.

277

238

165

220

206

116

119

142

447

133

100

205

151

111

140

3,596

Next
month's
reqnire-
mento.

300
0
0

200
0

250

200

800

400
0

100

153
0
0

200
50

• • a

2,273

Deaertions

since
Pus Law.

160

207

174

120

1,328

272

160

270

?
?

500
35
667
120
118
100
270
606
150
440
13

1,600
300
137
500

1,924
515

1,540
26

12,355

Desertions
mon^y.

40
20

20
14
10

?
147
23
20
10
90
12
?

20
35

5
66

9
20
10
30
81
12
55

100

190

140

55
average

* No Pus Law in that district.

Average Total Desertion, 426 per Company ; Average Desertion Monthly, 55 per

Company.

112

Mr* C. S. Qoldmiulii'g ^yidence.

QQ
ID

l-l

O
H

■s

«t)

•^ 'P^ r*

CO ©1 ^^

00
00

01 O)

«t)

:S8*2

CO ^

«t)

• • •

SS2

: :t>*cDtdcoo roo^ooooco

CO ^ CO

^ (M

COOG^iO
0> fla A

CO t^l**3 ^ O

1^ C4 ^^ ^ ^^

09 ao

to 01 00
so ^

IT* r* ^ i:^ W'

:SSco^3 : :

• ^ - -^ • •

•H r^ »^ •-<

JziJz;

CO CO

•-4 toco

Om-4 >>

25 • • •

**T ^« ^« • • • •

^^ • • • •

■S

«^

CO CO

i ^ '

Ol ^

00
01

:goi

• • •

ill

. CO

fe o o

>i^ • • \f\ • • • • •

• •

lO 01>O CO 00

:oo :rTO :co :© : : :

• • ^^ ^^ • IC9 • ^"1 • • •

• • 00

f 8 8 J?

^o tf ^ ,*- 12 ^ft® cc«2© o SJp Q o© ©o'S 2^2 ©^® §5. 13 32 3 q^

eoi

«rtoieo ^

O
00 ©

en B

5 O

h3 - * .^

a
o

i 3

o g

CO-^ t^ ©

^^ c

• -J 5
'^ a

. .5 I

■ "S &

00 g

00 00 00 is

c a c ';^
©

<
P

f«
H

P
P

French Rand G. M. Co.

(23)

Great Eastern
(24)

Grey's Mijnpacht

(25)

Horsham Monitor
(26)

Henrt Noursb
(27)

Jumpers

(28)

Jumpers Deep

(29)

Jubilee

(30)

Lanolaaote Deep

(31)

Langlaagte Star

(32)

Lancaster

(33)

Langlaagte Estate
(34)

LUIPAARDS VlEI

(35)

Meter and Charlton

(36)

Marie Louise G. M. Co.

(37)

Yes.

By all canteens on our
property and adjoining.

25 per cent., and this week ! 6 stores
work has been stopped
to a great extent.

bar, just over our I ^^aries considerably.

boundary.

Canteen and kaffir
stores.

Hotel, eating houses,
etc.

Hotel, eating houses,
etc

bar ; sold openly.

Cannot.

Paarl's Hoop village.

30 per cent. Sundays.
10 per cent. Mondays.

10 per cent, periodically.

Cannot say.

25 per cent.

t200 to 300 on Sundays.

5 per cent.

10 per cent.

About 40.

Very few.

Eating Houses and Bars. About 16 per cent.

Cannot say.

Say six on Sunday, but
not badly drunk.

5 per cent, of 220.

Low stores
natives.

through 50 on pay day and Sun-
days.

Cannot state, being
rather far off from
Mine.

Very few.

3 bars
kaffir
Can't c

None.

1 bar,
2 bai
houses

1 bar,
white b
ary.

None.

1 store,

None.

None. ]
eating
bounaa:

I bar, c
store.

1 eating

None.

1 cante
houses,

None.

Mr. C. S. Ooldtnann's Evidence. 115

■ ' " • - - ^ ■ ,

daration, and, in the opinion of those best capable of judging, only a nominal
improvement on the previous state of affairs exists. Whilst convictions undoubtedly
have taken place, showing that infringements of the law are occurring, I am still of
opinion that by far the greatest amount of the liquor traffic remains undetected. To
snow what the opinion of the mine managers is with regard to the operation of the
Liquor Law, we have had a table (see Statement D) prepared from 74 companies
on the Band which conclusively demonstrates the absolute necessity of a better
administration of this otherwise excellent law. A summary of this table shows that Table of returne
all the managers of the 74 companies are unanimous in declaring that liquor is being ?4 OTnoerffi^
sold freely to the natives. It lurther goes to prove that although in some cases the ^^J^Ji^'JJ*
amount of drunkenness on some mines is small, still the overwhelming returns
indicate that a large percentage of natives employed on the fields is rendered
incapable for work owing to the effects of drink. A further perusal of the documents Police super-
will show that while in some individual cases the police supervision has been fairly u^Hr TJw
satisfactory, the bulk of the cases demonstrate that the supervision has been totally i»»«ieQ«»t««
inadequate. It will also be seen from the statement, that while in some instances the
mines have recently gone to the trouble of opposing applications for licences, in the
bulk of cases they have refrained from doing so, owing to the ill-success which has
attended previous eflforts in that direction, ana to the loss of time which is entailed by
such matters. I wish to read one letter which I have received from Mr. Johns, Mr. johM* letter
manager of the Ferreira Company : — " In reply to your letter of yesterday's date l^oniclSSL'
respecting illicit liquor traffic, and asking whv I did not protest against granting any
licences in this neighbourhood, the reason why I did not protest is that I consider it
would be quite useless to do so, previous protests having been of no avail." In my
mind this liquor trade amongst the natives constitutes one of the great grievances
under which the mining industry is labouring, and requires energetic and immediate
suppression. The admmistration of the Liquor Law should be placed under the Local govern-
control of a Local Government Board, having for assistance as advisory members SSnutration
representatives of the mining industry. oi uquoriAw.

I am convinced in my own mina that gold thefts have been and are still taking ^^ <*«"»•
place on these fields, but to what extent it is impossible for me to say, and I would
not like to venture an opinion. It is impossible to have a perfect check on all the ®®^V »curi*j
gold won from the mill and cyanide works. The greatest security against thefts rests tStS! ^
m the fact that the men engaged in this specific responsible work are regarded as men
of honour and beyond suspicion, which, from an ethical point of view, is highly
satisfactory, and cannot fail to raise the standard and the sense of their mondity.
The fact of a detective continually watching over them would, in my judgment,
destroy the object it hopes to serve, and the men, if engaged under such conditions,
would deteriorate, or tend to cause an exchange of honest men for such as would
require close watching. However anxious one might be to have a perfect check
system, this, as experience can prove to you, is hardly possible. I assume, guided
therein by certain circumstances, that gold thefts are being practised to a large extent
on the Rand. I think that the general opinion of mine managers and representatives
of the industry is that the men employed in the reduction works ai*e inherently
honest, but it is the instigation which they receive from the outside which has such
tempting and demoralising influences. The great necessity, according to my judg- special detective
J ment, lies in detecting ana bringing to justice the offender who illicitly buys the ^'brinrS^^
I amalgam, and it is for this reason primarilv that we require a special organisation of STenT* ^^^
well trained men to apprehend such offenders against the law. Previous witnesses ^""'
have already referred to its deficient administration, and we all know that many men
in this place are nominally carrying on a trade which they are virtually not prac-

116 Mr. C. S. Qoldmann's Evidence.

I'Sffi^Ation tising. In order to effect apprehension and conviction it is necessary that laws should

tSrST: it/ad- exist which are applicable to these special c^rcumstancea In view of past experienco,

^2i,\5*^°"I respectfully submit that the Law of Illict Gold Buying is defective, and that the

administration of the law is inefficient I will apply my first remarks to the law

itself, and will show to you where it is defective, and would further suggest the

AiticiMi45 and greatest urgency in getting such law altered. Article 145 of the Gold law says that

i46of the Gold ^^ persou luiall carry on trade in amalgam, &c., under which is included the purchase

or bartering, &c., of amalgam, &c., unless he possess a special licence to do so, for

which he must pay £10 per annum, with this proviso : that an individual digger or

company shall not be required to take out a licence for the sale of amal^m, &c. The

fine for the infringement of this law is a sum not exceeding £100, or imprisonment,

or both together for the first offence ; for the second offence a fine not exceeding

£200, or imprisonment, not exceeding 12 months, or both together ; and for a further

offence according to the judgment of the Court Article 146 says that any person

found in ihe possession of amalgam, and who can give no proof of having obtained it

in a lawful manner, shall be punished with a fine not exceeding £500, or imprisonment

not to exceed two years, or both together, for the first offence ; and for the seoond

offence with a fine not to exceed £1,000, or three years, or both together, and for

further offences, fines or imprisonment according to the judgment of the Court To

my mind the defect of the present Gold Law with respect to fllicit gold buying is that

it neither goes far enough nor is sufficiently explicit in its meaning as to what cch>

stitutes umawful possession. Section 146 merely throws the onus of proof on the

accused to show that he obtained gold found in his possession in a lawful manner, but

we are left in doubt as to what these words may mean. Purchase, sale, barter and

exchange are in themselves lawful, and they are not necessarily rendered unlawful by

the operation of Section 145. This section only provides that persons dealing in

amalgam, &c, shall take out a licence to do so under certain comparatively small

penalties. Consequently the penal operation of Section 146 is i*endered nugatory, for

under an indictment under this section the accused has only to prove purchase, bflurter

or exchange to ensure his acquittal. The prosecution is then thrown back on Secticm

145, which, as already pointed out, does nothing more than provide a penalty for not

taking out a licence. This to my mind constitutes an ineffectual law which I think

Proote of inefls- should be altered. That the administration of the Gold Thefts Law is not an efficient

tiatfonofieirifl^ oue is Sufficiently demonstrated by the fact that no convictions have taken place in

gSdtii^"'* the past, and that where there have been detections, and where after endless pain ani

trouble and expense have been incurred by the companies to effect detection, those [
who have infringed the law have been able to escape. I suggest a Local Government
I'ocai eejjrn. Board, who shall have the power to enrol a special detective force for administratiiNii I
iSxdnifltratfon of the law, and that an advisory board of representatives of the mines be at the
^ItiwfS""' disposal of the permanent board.
Native ubour. It is uccdless f or me to state that the mines have to go to considerable expense

supDiy of native and troublc to effcct an adequate supply of natives. The supply formerly has not
labour. })een so great as now due to the expansion of the industry, and for a considerable t"

time there has been a great shortfall. If you were to examine returns and reports of >
companies during the last year, as I have had the opportunity of doing, you wouM ^ j
see much of the decreased returns are due to the scarcity of native labour. The chief "-
supply of natives is from the East Coast, equal to 50 per cent. The supply from the' ^.
North is about 20 per cent I feel convinced that the supply from the North can be - :-[
considerably increased, seeing that the labour of these natives is regarded as efficaenli' '
I may mention, in qualification of this, that the Wolhuter Company brought down 50tf
boys; they have stayed their full time with the manager and he has been weD

Mn C. S. Qoldtnarin's Evidence. ii7

pleased with them. I say it is in the interests of the Govemraent that they should ^^'^^^ JJ
assiBt UB by every means possible to bring the labour from within the boundaries of supply of n**
this Republic. Firstly, because of the less expense of bringing down natives to this u^ ^\dtu^
centre; secondly, because it is more in the interests of the Government that the J^uiroST''*'**'
money which the boys earn remain and be spent in this country, and not go out of it ;
and thirdly, because the amount of money that is taken out of the country would
T^QQAin here. I can further say that if the Qovemment were to assist in the supply
of natives from within this country they would by these means be serving two
parpose& According to the native laws the actual tax per native in the native Taxation of na-
districts amounts to about £2 10a ; the only exception to the liability of this pay-. ^**^-
ment being natives residing as servants under white persons. Thus, if the dignity of
labour were impressed upon them by the enforcement of this law, we are likely to
get a larger supply. The other purpose served would be — that such boy coming to
work would earn money, and after completing his term of service he would have
flofficient funds to enable him on his return to his district, when called upon by the
GoYemment, to pay all his taxes, which would be an additional revenue to the
Government. At present one-half of our supply comes from the East Coast, and the S"ppJ.v of native
monstrous sum of 26a lOd. is levied on each native for his passport by the Portu- e^^ooJT^
taeae. It costs, on the average, 56a 6d. to 60a to bring down natives to this centre coAtof traniport
mm this part of the country, which is only 300 miles off from here ; which is, in my b^uS***^* **'
opinion, an excesaive burden on the industry, and necessarily increases the price of
native labour. In connection with this matter, I will refer to the rates for carrying Riiiwaymteafor
these nativea I hold that it would be to the interests of the Government and this u^cwektboa^
industry to facilitate this traffic as much as possible, at the least possible expense
to the companies, and, if anything, sooner to put an increased rate of conveying them
on their return journey. My opinion is, that the rates of transport of natives are
altogether too high. From Volksrust to Johannesburg is only 170 miles, and the
eharge is 20a 6d. per head ; from Indwe to here a distance of 543 miles, 25s. 3d. is
ehairged ; from Komatipoort to here, a distance of 351 miles, 18a 9d. is charged, and
en the return journey 39a is charged. The boys on their return to Indwe have the
option of engaging a truck ; 25 and over can engage a truck, which works out at £1
a head. Now I argue that as a good many boys can go in trucks, and if boys are
brought in trucks they should be carried on what I would consider a reasonable ®''p^**** '?.*
truck-load basia On this basis boys would be brought from Indwe to here for about way ^Il^'for
Ifla From Volksrust to Johannesburg, 170 miles, the native would pay 7a 6d., natiJTiIbou^'
instead of as at present 20a 6d. ; from Komatipoort to here, 351 miles, the native
troold pay 11a 5^d. ii»tead of the present amount of 18a 9d. I will now go to show
what the mining industry has done to try and facilitate the transport of natives from
the north where there is no railway. An organisation is in existence for the con-
veyance of nativea We have a staff of men in Pietersburg, who collect the natives
and bring them to the depot there. Our next depot is at rotgieter's Rust, 20 miles
away, another depot at Vroom's Store, 30 miles distant, a depot at Kaufman's Store,
25 miles from there, one at Pienaar's River, 25 miles from the latter, and one at
Ldeuwkraal, 30 miles distant, and in Pretoria we had the use of Beckett's compound.
8o from this you will observe that the journey is completed in eight days, and the
\x>ys have shelter and. protection at each stage, and there can be no cause for
complaint in this respect This route should be encouraged, and in my opinion the Tequ^nd"^ fw
Qovemment should appoint additional commissioners in the Northern aistricts to 'tiv?*iib<?Jr"*
mist in bringing the material to Pietersburg. I should like to point out to you what ^^^^""^ commis.

■sionen.

Cape Government has done in the supply of nativea They have given notice c ape Govern-
rh their kaffir chiefs to collect native labour, and the Oovemment have brought twe Lb^.°^

118 Mr; C. S. Qoldmariit's Evidence.

it to Imvani Station, where we have taken delivery during the months of January
and February last of between 400 to 500 natives, and 2,797 during the eight months
in 1896. The Cape Government have depots at Umtata. I can further show you
letters which we have received from the Commissioners of Natives in the Cape
Colony, telling us that, their depots are full, and urging upon us to take the natives.
I merely wish to show, to illustrate by this, that we should not want to look for our
supply from this quarter at f^ll, but that we shoidd get it from within the borders of
this country. I would like to impress upon you also the necessity, as stated before,
of bringing down these natives at as low a rate as possible, and that if it is to cost
anything: at all it could be put on in the return iourney, inasmuch as we have this

statement show- -» ** °, •ivt«» a * p -^r a i i"L'"L«

ing loBsea of large outlay m the beginning so uncertain of recovery. My statement, which is a
un???o?erS complctc ouc, shows the amount of premiums paid for obtaining native labour, which
FoiTnat^e^Ya^ has uot becu rccovcred. In 1895, taking six companies only, the loss was £7,317 ; in
bour. 1896 14 companies showed a loss of £21,335 ; in 1897 17 companies show a total loes

of £31,823. The latter represents as nearly as possible a loss of 75 per cent on the
Loes of Lang- outlay. I should like to araw particular attention to one company, the Langlaagte
oom^ny*^on Estatc. The uumbcr of boys they employ is 1,790, and the gross premium for
primiu^^ obtaining these boys was £12,120; they have only recovered from these boys £530,
^ native la- leaving a loss of £11,589. I will take the case of the Bonanza Company ; they had
Low^f Bonanza paid £750 for obtaining boys, and they had not recovered 6d. I now wish to draw
S^™St"ovei^ your attention to a matter connected with the Pass Law, which I omitted yesterday,
For^Mti^e^S namely a defect which also means a great expense for the company. The present
bour. offices at Boksburg, Johannesburg, and Krugersdorp are too far apart on the

'^mati^n'^^Sf distinctive mines for proper administration. As an instance I will take a gang of
Pass Law. j^^yg arriving at Ellandsfontein Station for the Geldenhuis Estate. A boy is first
walked off to the company's compound, and then he is walked off to Boksburg and
back, eight miles each way, for the purpose of getting registered. This takes
altogether one day. The boys have to be provided with bread at 3a per dozen, equal
to 3d. per man. At Boksburg he is delayed and has frequently to camp out over-
night, with the result that many desert. Another defect in the law is in the moving
of natives from one district to another. No transfer books exist whereby a boy who,
for instance, wishes to go from his district to Johannesburg, can go and get his district
pass and his pass for the unexpired period of the month transferred to that district,
which in itseli necessitates an unnecessary expenditure. An illustration will better
explain the point. On the 18th January 600 boys were transferred from the Croesus
to the Bietfontein Mine. They were then in possession of a pass paid until the end of
January. In order to pass they had to come to the Johannesburg Office, and there
take out a '' reis " pass for the Boksburg district at Is. per head. They then had to
walk to Boksburg, arriving there on the 20th, for the purpose of taking out the
district pass and their new pass for the month, in that district 2s. per head, a distance
from there and back to the Rietfontein Mine of 27 milea As the passes only run
from the 1st to the 1st, the pass taken out on the 20th lapsed on the expiration of the
month, and a new pass had to be taken out from the 1st of the month, so that the
expenditure per boy in being transferred from one district to another amounted to 78

White wages. I would poiut out to you that, according to the evidence of a previous witness, he

estimates the average cost of white labour at 28 per cent, on the total cost. An
ar^ment took place as to whether white labour is not too highly paid. In my
opinion it is not. The opinion expressed was that the pay of European labour is tcx)
high in this country and should go down. But in adducing these arguments, I think
one of the principal considerations is to ascertain whether the men employed on the
mines have only to look after themselves or to supply the wants of th^ families as

Mr. C. S. Qoldmann's Evidence. 119

welL This I think is a very important question, which may throw a different com- suturtaoeofEur-
plexion altogether on the pay of white labour. I have obtained statistics of the returns oFs^compaSJ^
of European labour from about 53 companies (see Statement E), which goes to show jju^be,. o, m^
that they employ a total of 3,620 miners. Of these, 470 are married miners with families r i e d minen
on their properties; 1,195 are married miners, but their families are away from here; on their pro^
and 1,955 are single men. The number of miners who have left during the last six KJofmarSS
weeks are 827, of which number approximately 380 left the country and 480 remain g^fuJ^j^^^nt
in the country. This shows the following percentage : that 54 per cent, are single NuS^**of an-
men and 46 per cent, are mairied, of which 33*1 per cent are absent. It therefore f^^ °*^"'
devolves upon them to support their families. I think it ought to be the desire of the
Government to make it possible for these miners not to have to live apart from their
hmilies, but that the conditions should exist which would enable them to live in this
country, which in itself would add to the revenue of the country. As regards white
labour in itself, I will acknowledge that the figures of Mr. Catlin would go to show
that by greater pay a greater amount of efficiency is to be obtained. Consequently I whitewaflrw.
think it should be the object of every mine manager to see that his labourer improves
m efficiency, and does more work, which would mean a saving. A system which is
now being introduced, and which in my opinion is the only system which will work
out satisfactorily, is the contract system, whereby a man is told to do a certain amount Cont»ct^ystem.
of work for a certain sum of money. This expedites the work, and is found to be the The bonus sys-
efaeapest I do not approve of the bonus system. I may mention one thing in regard ^'^'
to white wages, we have an instance in point of a man — a fitter on the Central Ore
Seduction ODmpany — receiving £30 a month. He got married, and the moment he
had an increase of family, he found the conditions did not enable him to keep his
family here, and he was obliged to send them away, the cost of living being too high.

According to the Chamber of Mines returns, I find that 53 producing companies ^^fi^^®' **'
on the Band have returned an average of ll^dwts. per ton. However, on analysis, it turns §?ooSr
shows that the average is only brought up by a few companies. Of the 53 companies, ^^^^^^
four companies average 24*4 dwts., or 7*5 per cent, of the total producing companies; ^®^°ij^°'*^n
two oompcuiies average 17 dwta, or 3*8 per cent.; 16 companies average equ«d to 30 per totJwnount
cent; and 30 companies average 7*9 dwts, or 58 per cent Gentlemen, I wish to ducS*** ^^'
impress upon you now that the backbone of the industry is not the four companies
wiuch average the high returns, nor the two ; it is the 30 companies which are only
returning 7*9 dwts., and which are struggling unavailingly with the existing impedi-
ments. I go very much further, and I say the condition of affairs ought 5) be such
that many of the companies which are to-day unable to work may be brought into life
again. I would draw your attention in reference to these 30 companies to the very sinaiimaiginsof
small margin on which they are working. I may say the results have been worked th^^sa pnSuic-
out reliably, not from estimates taken from the Chamber of Mines, but figures taken inff«>o»i»n*«-
from the most careful investigation of the balance sheets of the companies, and in the
majority of cases checked by Mr. Jennings. The average of these 30 companies shows
a return of 30s. 0-4d. per ton, which leaves a profit per ton of Is. lOd. This will show
you how very close these companies are working, and how little it would require to
make the average show no pix)fit whatever. The companies I refer to include
companies which have been producing from the earliest days. In regard to the di
dividends, I should like to point out to you that 20 companies have only paid dividends ^
during 1896, the amounts paid being £1,523,581, (see statement F) showing a decrease
in dividends over the previous year of over £540,000. That in itself is very si^ficant.
Whilst these companies paid 23 3-8 per cent, on their issued capital, taking it at to- ^^^ ^ ^^ ^^
days market value, they returned 10*38 per cent., but if you apply these total dividends di-ddends on
over 61 producing companies you will find that the total return of these companies Smp«S?M?*°*

vidends of
comfMinies.

Mr. C. S. Qoldmann's Evidence.

RETURN OF EUROPEAN UBOUR,

Shtwing NunAer qf MarrUd aad S

'ngle Mine

., and Number v>hich

Ufl during

pnmmuSix Weda,

from. 30th April, 1897.

Married
Minere
with
Famihea
on the
Property.

Married

Minors

Of which

Approxi-

COMPANIES.

Miners

with

Families

Single
Men.

Left Mine

po^t'su

Left the

Nurober
Remaining

(Abroad.

Veeks.

mately.

Country.

Banket

Bonunia

Champ d'Or

Caasef Colliery

City and Suburban

184

Durban Roodepoort

Ferreira Company

l.-i

150

200

110

tioorgeGoch

Geldenhuia Main Reef

Qoldenhuis Estate and G. M. ...

fJeldenhuis Deep

1S3

Olen Deep

Henrv Nouree

■2

Horafian. Mocitor

Jumpers

Jubilee

May Cansolidated

Meyer and Charlton

i'b

Modderfontein

New Heriot

'23

ffii

114

New Primrose

New Spea Bona

NourseUeep

Princess Estate

■Rand G. M. Company

"Rietfontoin A

Roodepoort fJ. M. Co. ...

Roodepoort United M. B.

Rose Deep

€9

Stanhope

South Randtontein

Springa Colliery

Treasury

Transvaal Coal...

Yan Byn Estate

Village Main Reef

Vogela. Estate...

Weet Rand

Wemmer

West Roodepoort Deep

WiBhaw CoiS Co.

?
0

7
0

2S
0

Windsor Co

Wolhut«t

Violet Consolidated

Roodepoort 0. M. Co.

Simmer and Jack

118

322

Crown Deep, Ltd.

470

1,195

1,955

827

380

447

Mr. C. S. Qoldmann's Evidence. 121

RECAPITULATION.

53 Companies, 3620 total Miners : —

12*9 % Married Men on the Properties with Families.

33*1 % Married Men on the Properties without Families.

54*0 % Single Men.
827 Miners left during the past six weeks, of which 46% have left the country ; 54% have remained
in the country.

only comes to 43 per cent, of the money invested at present market rates. Now I
think that everyone connected with mining will admit that a 4 J return per cent, on one's
money in mining, equal to a railway return, is not what capitalists expect with all the
risks appertaining to mining. I think all Governments will acknowledge, where mining
is carried on, that a certain amount of risk is attached to mining, and that therefore the
industry should be assisted, knowing full well that a liberal percentage on the capital
outlay is justified. A question I wish to bring before you as one of supreme
importance, is to see in which manner the better condition of affairs can be brought
about in the mining industry, so as to assist us in restoring the capital which has been
melting away from us, and which is necessary for the development of a good many
mines which are silent at the present moment I feel this, that unless relief is given,
it will only rest on those few companies to bear the burdens of the industry. A good Ne^ty of de-
number of companies which were on the list of working and developing companies, Ln^Kxfudng
and which are all pillars on which the whole welfare of the country rests, will be °^*^
dropping away, throwing increased pressure on the remaining ones. It is therefore
necessary, and this is now the critical moment, to bring about better conditions. I
will say tiiat this refers in particular to the question oi dynamite, railway freights, Reliefs desiwd.
and general import dues, and also to the influence of the Government to see that the
other neighbouring Colonies that derive benefits from this industry are reasonable. I
will not travel over the same ground. I agree perfectly with the previous evidence
with reference to dynamite, but I will say that I am strongly in favour of seeing free Dynamite.
trade in this article, with a reasonable duty for the Government As far as the Free trade in
railway concession is concerned, in my opinion, gentlemen, I believe that the EeSuction of
Government should be determined to bring down the rates to a reasonable proportion, JJfd'^tipJ^
■when probably we would find that the expropriation can be affected at a later date a^io"-
nnder better conditions than to-day, but that would absolutely depend on the
determination of the Government now to see that the tariffia are considerably reduced,
failing which, it is much the best that expropriation takes place now instead of at
much greater cost later on. I believe that in many respects a great reduction can be Reduction of
made, which will bring down living expenses to a reasonable basis. I also believe *^^ **' "^^^*
that in the question of coal rates that there could be more advantageous tariffs, so that ^t^J***^*^
where we find mines to the west of Johannesburg, which are acknowledged to be
poorer than mines to the east, the railway freights to them ought not to differentiate ^^^"J^'^'^J
from those in the immediate proximity of Johannesburg. In my opinion the tariff coS. ™
frona Johannesburg, going west, should not exceed the rates from Elandsfontein to
Johannesburg, or they should differentiate in their favour, so as to give these
companies in the west a chance. I could mention that some of the coal bills in the
West, Band exceed the amount of saving in railage to the mines to the east of
Johannesburg ; or, in other words, the difference in the coal rates would cover the total
expenses of the coal bill of some West Rand mines. How the general relief can be
brought about it is hardly for me to suggest, but I do believe, without going into Maintenance of
figures, that if we ^et considerable relief the revenue could still remain on a level. By ^^ >*ven««-
"iving greater facilities to the mines, gentlemen, you would indirectly derive great
^nefit, you will enable companies which at the present moment cannot work to work, ^ f^^reduction

122

Mr. C. S. Qoldinann*s Evidence.

ue^^whn^ and you will bring about an expansion of trade and vitality. I fully believe that it
iiet raqoMtod. could be brought about within the margin of the expenditure of the country.

TABLE

8HOWINO

1st. An)ount of Dividends paid by 20 Rand Companies for 1896.

2nd. Interest percentage on Issued Capital.

3rd. Interest percer|tage on Marl^et ValuOi May Ist, 1897.

Total

Issued

Market
Value of

Dividends

Per

Cent, on

Issued

CapitaL

Per Cent.

Name of Company.

Share
Capital.

Share
CapitiJ.

Issued

Capital on

May Ist.

in
1896.

on
Market
Value.

1 City and Suburban

1,360,000

930,000

68,000

7-31

2 Crown Reef

120,000

120.000

1,230,000

132,000

110

10-73

3 Durban Roodepoort

136,000

126,000

656,250

56,250

8-57

4 Ferreira

90,000

1,440,000

247,500

276

1718

5 Geldenhuis Estate ...

200,000

525,000

25,000

12i

4-76

6 Henry Nourse

125,000

656,250

37,500

5-71

7 Johannesb'g Pioneer

21,000

199,500

84,000

400

4211

8 Jubilee

50,000

300,000

30,000

10-00

9 Jumpers

100,000

281,250

30,000

10-66

10 Langlaagte Estate...

500,000

470,000

1,586,250

141,000

8-89

11 May Consolidated...

275,000

481,250

55,000

11-43

12 Meyer and Chariton

85,000

86,000

371,875

17,000

4-57

13 New Chimes

100,000

25.000

5,000

20-00

14 New Heriot

115,000

111,864

811,014

95,084

11-72

15 Robinson

275,000

2,750,000

3,645,750

330,000

9-05

16 Stanhope

35,000

34,000

23,375

1,700

7-27

17 United Main Reef...

150,000

431,250

37,500

8-69

18 Van Ryn

200,000

177,000

273,375

32,000

11-70

19 Wemmer

80,000

460,000

47,500

1033

20 Worcester

100,000

93,722

351,487

51,547

14-66

6,691,000

6,517,586

14,678,876

1,623,581

231%

10-38%

Proflti of 80 of I now want to come back to the figures of yesterday in reference to the cost of

si^produdiig gQ ^mpa^nies which I mentioned. I wish to say that in re-checking the figures I

found a slight difierence. The profit of these companies is 2s. 5d. per ton instead of

Is. lOd., as I stated yesterday. I also wish to araw attention to the fact that in

doing this I wish to draw no comparisons of one company as against another. All I

Mr. C. S. Qoldmann's Evidence. 123

wish to demonstrate was that these 30 companies crushed daring 15 months 3,000,000

tons of rock, and that is the result. I may mention that I have taken 30 companies

showing the lowest yield of the 53 producing companies, and I include in my list, of

course, companies showing good returns. For instance, 14 companies out of that 30

have crushed 2,036,000 tons, which show profit, without depreciation, of 7a 3*658d.,

and with depreciation, 4s. 501d. per ton. I further want to draw attention to the

fact, taking the figures, for instance, of a witness who appeared to-day before you, as

to the benefit a reduction of 6s. a ton would mean to some of the companies I am ^"-^^^iJ^*

interested in a company which has crushed 72,000 tons without making any profit. 68.De? ton©

This company, with a reduction of 6s. per ton, would return a profit of £22,000. In ^<*"^"fif °^**'

referring also to the railways, there is one thing that I should like to draw your

particular attention to, and that is the necessity of trying to bring about a reduction

of rates. Other Governments have shown a desire to do so, but they have been ^^y**»t€

somewhat prevented from doing this. fi'ltherUnd

EaUway.

Mr. Hugo.

Who prevented them ? — The Netherlands Eailway Company. I can give an
instance. I have a letter here from the Cape Government, dated 24th July, which
states : " In consequence of representations made by the Netherlands Railway
Company it will be necessary to raise the rate for the conveyance of cement to the '°5!^„Se'^
Transvaal for rough goods to third-class rate from the 1st September." cement

Mr. Albu.

What year is that ? — 1895. I have another letter of the 14th March, 1895, in
reference to reduction of the rough goods rate. It was the intention of the Cape
Government to assist us in reducing tariffs — by rough goods I mean timber, rails, and in<»eMe of rat
all heavy gooda The Netherlands Company immediately thereon put on an increase byth^Nethei
on their railway rates on rough goods from Is. to Is. 8d. per lOOlbs., which to a >*°^^*"^>
certain extent counteracted the intentions of the Cape Colony. At the same time the
Cape Colony felt that though the Netherlands Railway Company had increased their
freight, they at least should not do it, and whatever the Netherlands Railway
Company increased they reduced. I will read a letter from Mr. Difford : " With
reference to the Netherlands Railway Company's advertisement of an increase of 8d.
per lOOlbs. for the conveyance of rough goods from Mid-Vaal River to Johannesburg
and other stations on and after 1st April next, I have the honour to state that the
Cape Government does not intend to disturb its through rates from the ports to either
Viljoensdrift or stations along the Vaal River, and that the existing through rates
from the ports will therefore remain in operation. On traffic for intermediate stations
an additional 8d. levied by the Netherlands Company will be charged, the port rates,
however, being the maximiun charge." I should like to mention transit dues, which, Transit dues.
I think, the other Governments are absolutely not entitled to, and I think should be
removed in their entirety. The argument I have heard mentioned is that the
Transvaal Government are maintaining the transit rate of 3 per cent, for any goods
passing through the Transvaal for the North I think, for instance, if this transit
were removed, the other Governments would also be open to reason. We have to pay
duties on produce coming from Basutoland. The Orange Free State, having tree
trade with Basutoland, take their produce from there. The Orange Free State have,
however, free trade with us again here, and what stands to their advantage are the
heavy protective duties here for produce which is imported. The Orange Free State
take their grain free from Basutoland, and sell us their produce at increased prices
mider the protective duty. I merely wish to convey that we are paying more for our

Mr. C. S. Qoldmann's Evidence.

O. CAPITALIZATIOK COMPMISOli, SEPTEMBER, 1895— MAY, 1897.

Stateinont showing 105 Companiee which had a Capital in SKPTBWBmt, 1895, of £29,621,735, which,
at rating nt«B during the month, which was the height of the boom, meant a oapttalization of £100,470 191
roughlj.

Thoee 8ama Companiee to-day have a Cajiital of £36,808, 133, n-iid at ruling rates show a capitalizaticu
of £53,202„^ai roughly, or a diiforeiico of £97,3&1,«)2 coniimred witli September, 1895.

There ore only two Companies to-day which .show a higher capitalization iJian in September, I89S,
viz. :— Bonanza : Capitol £200,000, which, at current rates, shows a difference of £210,000 in favoor of
to-day, and Jokassesburc Pionebb Co. : Capital £21,000, which ahowii £21,000.

2SO.0OO

27/8

343,750

250,000

4/6

56,250

287,500

Angelo Debentures

175,000

£6/12/6

1,159,375

225,000

56/-

618,750
150.000

340,623

Angle Tharais

92,600

55/-

254,375

150,000

13/-

97,500

156.878

Aurora

65,000

37/6

121,875

65,000

12/8

40.823

81.2.50

Aurora West, United ...

100.000

55/-

275.000

140.000

15/-

105.000

170.000

Balmoral

100,000

65/-

325.000

130,000

17/-

110.500

214.500

Banket

1»0,000

10/-

90,000

111,500

7/6

41,812

48.188

B''"tj*«

433,000

5/7/6

2,338,125

433,000

18/9

407,812

1,930.313

Benoni Gold

200,000

75-

750,000

204.100

76,537

673.463

480,000

20/-

480.000

480,000

7/-

168.000

312,000

Champd'Or

133,000

76/3

507.062

133 000

15/-

09.750

407,312

Chimes West

150,000
187,250

70/-

5-23.000
1,334,156

175.000
187,250
250,000

8/3

57/a

54.687
538.343

470,313
796,813

Crown Deep

Crown Heei ;..

250,000

3.125,000

2,312,500

812,600

120,000

iia

1,305,000

120,000

lOi

1.215,000

150,000

City ond Suburban

1,360.000

2,337,500

1,360,000

66/3

1,126.250

1,211.250

175,000

81/3

710,938

176,000

26/3

229.687
100,000

481,251

Durban Roodepoort

125,000

»i

1,031,250

125 000

656,250

375,000

Ea«t Rand Proprietary ...

290,000

1,667.500

290,000

37/6

543.750

1,123,750

650,000

129

8.043,750

746,325

30/9

1,147.474

6,896,276

Terretrn

S9,0O0

I9i

1,733,500

89,000

1.424,000

311.500

French Rand -

480,000

80/-

1,920,000

560,000

"if

483,000

1,437,000

Oeldenhuia Deep

2so,ooa

lOi

2,940.000

280,000

875,000

2,065,000

Oeldenhuia Deep Debent.

160,000

OeldenbuiB Eatate

200.000

6fl

1,275,000

200,000

50/-

500,000

775,000

150,000

215.625

150,000

11/3

84,075

131,250

Oeorge Goch

Ginsberg

160,000

520.000

325,000

30/-

325,(XK)

195.000

152,500

286,875

160,000

30/-

240,000

26,875

Clenoairn

225,000

90/-

1,012,500

500,000

33)9

843,750

108,750

GoldUelds' Deep

Goldlielda' Deep Debent...
Gordon KaUte

600.000

7,950,000

600,000

95/-

2,850,000

5.100.000

175,000

20/-

175,000

197,500

3/9

37,031

137,969

Great Britain

60,100

60/-

180,300

60,100

20/-

60,100

120.200

Henry Nuui-se

125.000

7/1/3

882,812

125,000

687,500

19.1,312

Howham Monitor

190,000

40-

380,000

190.000

23.730

356.250

Jubilee

50.000

475.000

50,000

287,600

187,500

Jumpers ... ...

100,000

8/1/3

806,250

100,000

65/-

276,000

531,250

Kleinfontein Central ...

225.000

65/-

731.250

225.000

7/6

84,375

646,875

KnighfaDeep

330,000

1.278,750

:i30,000

16/-

247.500

1.031,250

Leeuwpoort

95.000

13/3

62,937

95,000

2/3

10,687

52,250

Lancaater

234,500

46/3

542,281

234.500

33/9

395,718

146,583

I^nglaagte Block B

535,000

61/3

1.638.437

535.000

13/9

367,812

1,273,625

Langlaagte Deep

76.000

40/-

150,000

73,000

13/-

48.750

101.250

langlaagto Estate

470.000

6/16/3

3,201,875

470.000

70/-

1,645,000

1,556.875

lyuiglaagte Eojal

180,000

1,192,500

180,000

6/3

56,250

1,136,250

Langlaagte Star

Luipmird's Vlei

210,000

80/'

720.000

240.000

7/8

90,000

630,000

350,000

40/-

700,000

3.50.000

15/-

262,500

437.500

Marievnle Nigel

250.000

72/6

906,250

250,000

7/6

93.750

812,500

Main Reef

136.000

42/6

286,875

135.000

13/9

92,812

1&1,063

275,000

1,018,437

■275.000

SZiS

146.875

601.582

Mr. C. S. Qoldmanii's Evidence.

l897.-('c<»ui«««i..

Ueyer and Ch&rltoD

85,000

£6/17/6

584,375

85.000

87/6

371,875

212,500

Mioen-a

150,000

67/6

506.250

150,000

2/e

18,750

487,500

Modderfontoin

200,000

15/7/6

3,075,000

1,000,000

431,875

2,653,125

ModderfODtein BxteDHion

325,000

B6/-

1,381,250

£325,000

8/9

142.187

1. -239.063

MiJDpacbtlUDdfontein ...
MtdTneui Minee

6S7.500

25/-

821,875

657,500

319

123.281

698,594

220,000

58/9

646,250

K0,000

10/-

110,000

.'536,250

IWyneui West

300,000

15/-

225,000

300,000

37,500

187,600

KewChimoB

100.000

5716

287,500

100,000

3/9

18,750

268,760

Kew Comet

182, 4SB

87/6

798,376

182,486

13/6

114,053

684,.')23

SvifCra^uB

500.000

6t/3

1,537,500

500,000

6/6

162,600

1,375,000

HowFlorida

1-2S,000

77/8

484,375

162,600

10/3

83,281

401,024

Vew Heidelberg Roodept.

125,000

51/-

318,750

160.000

6/3

60,000

268,750

JfewHeriot

85,000

111

977.500

111,864

7/7/6

824,997

132,503

»o« Midas Estate

100.000

82/S

412,500

137,500

15/-

103,125

309.375

Kew Orion

100,000

95/-

760,000

160,000

1/3

10,000

750,000

Kew Primrose

280.000

2,100,000

300,000

3 9-16tbs

1,068.750

1,031,250

Mew Kietfontein

270,000

61/3

1.636.875

270,000

17/6

236,250

1,400,625

New Spea Bona

160,000

57/8

460.000

160,000

12/6

100,000

360,000

New Stf^jn EsUbe

190,000

40/-

380,000

190,000

11/3

106,875

273,125

NoaTsel>eep

Korth Randfontein

376,000

£9

3,375,000

375,000

£2i

796,875

2,578,125

185,250

53/9

497,859

185,260

22/6

208,406

289,463

NewTTlebfontein

185,000

1.202,500

231,250

27/6

317,968

884,532

HewBlueSky

150,000

31/'

232,500

150,000

6/-

46,000

187,600

Mgel

190,300

7/8/9

1.482.293

199,300

3ira

311,406

1,171,887

Nigel Deep

500,000

77/e

1,937,500

500,000

10/-

250,000

1,687.500

l-MTlCentOLl

200,000

46/3

4B2,S00

400,000

11/3

225,000

237,500

PoTRos Randfonteiu

437,500

£5

2,187,500

437,500

18/9

410,155

1,777,.145

Princes Estote

160,000

85/-

680,000

160,000

27/6

220,000

460,000

tUodfontein Estates

2,000,000

82/6

8,250,000

2,000,000

27/6

2,750,000

5,500,000

RaodMines

332,708

£44i

14,722,329

332.708

£16

0,339,001

RobiMon

2,750,000

£11

6,050,000

2,750,000

£7

s^asoiboo

2,200,000

BobiDM>ii Fteep

400,000

£91

3,700.000

400,000

2,460,000

1,250,000

Itobin*OQ Randfontein ...

600,000

35/-

1,050,000

600,000

18/9

562,500

487,500

220,000

65/-

715.000

220,000

20/-

220,000

496,000

175.000

809,375

175,000

12/6

109,375

700,000

150,000

7/7/6

1,106,250

160,000

B8/9

440,625

665,625

»^.^"'l- .:;

126,000

67/6

421,875

125,000

28/9

179,687

242,188

356,000

£6i

2,218.750

355,000

50/-

887,500

1,331,250

aJSrary ;;;

23,114

£11

254.254

93,000

96/-

441.750

100,000

27/6

137,600

304,260

Sinnner&Jack

250,000

£27J

6,812.600

4,940,000

50/-

2,470,000

4,342,500

StMhope

34,000

18/9

31,875

34,000

12/6

21,250

10,625

Treaaury

640,000

£tllUR.

72/6

489.375

540,000
£t>hiin.

30/-

202,500

286,875

VwRyn

160,000

£9

1,440.000

160,000

32/6

260,000

1,180,000

V™ Rvn West

120,000

£6

600,000

120,000

17/6

105,000

495,000

Verta

130.000

36/-

227,500

130,000

3/9

24,375

203,126

Ttli«eMain

VoRekrais Estatea

180,000

£9

1,620.000

180,000

65/-

685,000

1,U3S,000

200,000

£6i

1.250.000

200,000

28/9

287,800

962,500

V«riBtniU Coos. Deep .,.

327,500

80/-

1,310,000

327,500

10/-

163.750

1,146.250

90,000

12/-

54.000

90,000

3/3

14.625

39,375

Isr"*°"'°;:; ■:

41,800

7/-

14.6.TO

41,000

2/9

5,747

8,883

600,000

16/-

450.000

800,000

8/9

262,500

187,600

We*t Rand Mines

400,000

63/B

1,276,000

400.000

13/9

275,000

1,000.000

WoUmter

215,000

I2i

2,687,500

860,000

77/S

833,125

1.854,375

Witwateranind

260.000

101

2,562,500

250,000

55/-

687,500

1,875,000

Woroeeter

90,727

85/-

385,590

93.722

70/-

328,027

57,563

Yatk

90,000

20}-

90.000

90,000

9/8

42,750

47,350

95,217,325

150,470,171

36,808.155

53,262,536

97,364,402

126 Mr. C. S. Qoldmann's Evidence.

^ mSaS?^'' ^^ grain than we really should pay. This is a very important matter, seeing the
consumption of mealies, for instance, of some companies — I will take one company,
the Moaderfontein. They use 4,118 bags per year, at a cost of £5,560 last year,
working out at 27s. per bag. 1,700 bags of these came from the Transvaal ; 500 from
the Oranffe Free State ; and 1,700 came from America.

^^!SSS2«° °' Coming back once more to the question of capitalisation of companies and the
shrinkage of capital. I have drawn up a statement (see Statement G) showing the
enormous depreciation of values of companies. I have taken 105 companies which show

Damnation of a Capital of £36,000,000, which in 1895 showed a capitalisation of £150,000,000, and
compan'ie*8 they to-day only show the valuation of £53,000,000, showing a depreciation of
since 1895. ^y^^ £90,000,000. This is exclusive of another 115 companies which have an issued
capital of £29,000,000, and which, I should say, had also considerably appreciated in
value during 1895 and since depreciated Regarding the companies referred to by me
above, I would state that I spoke from memory. There were 105 companies in
September, 1895, with an issued capital of 29 millions. At the ruling rates during
the highest price of 1895, the valuation came out at 150 millions.

The share value was 150 millions ? — Yes ; the share value. These companies
show a valuation at to-day's price of £53,252,000, and show a difference of
£97,000,000. The only two companies which have not depreciated in value are the
Bonanza and Pioneer.

This concludes my statement, and I must thank the Commission for having
listened so patiently to the whole of my statement.

Chairman,

capiuiiaation of You tell US that this grouud had a value of 150 millions, and that value is now
companies. rQ(^^cg(J ^q 53 milHons. How is that ? — I think the prices were inflated.

I am going to take the opposite view. I am going to presume that the value of
the ground in reality is to-day much better and much more than when you capitalised
in 1895, so there is no proof before us that the value has depreciated, but it is only a
proof that the capital has been put in the ground in excess of the value of the
ground. — I can explain. The value of 29 miluons did not in 1895, nor does it now,
represent the intrinsic value of these properties. The public have placed their own
value upon them. Some shares, even under the greatest times of depreciation, such
as now, show a premium. For instance, I will take the Ferreira. It has a capital of
£90,000, and the shares are standing at £16 a share. The Robinson Company has
a capital of 2f millions, and the shares are standing to-day at a 40 per cent, premium.
Irrespective of speculation in shares, has the real value of the ground been
diminished ? — Apart firom disappointing development, the intrinsic value of some
Working con- gi'ound has, howcvcr. Only diminished from a working point of view. I mean, you
co^^'m""® nave companies to-day which you know have a certain intrinsic value, but the con-
ditions are such that some of the companies cannot be worked at a profit.

According to your statement you say that there are burdens due to unnecessary
taxation. What do you mean by that ? — That, at the present moment, all the
burdens are absolutely on the mining industry itself.
Incidence of tax- What do vou mean bv taxation forming: all the burdens ? — That is: heavy rail-

way treights, monopolies, and imposts.

Do not the merchants of Potchefstroom and Pretoria pay the railway rates ? —
They do.

Then why do you say it is only on the mines ? — I do not say absolutely all ; but
I say that nine-tenths of it is.

They pay the same taxation ? — Yes.

Mr. C. S. Qoldmann's Evidence. 127

What do you mean by monopolies ? — The dynamite monopoly, principally.

You said monopolies ? — Well, I mean monopoly.

You must not speak so generally. — I could speak of the cement concession, which
was a concession, but is no longer so.

You have also said that the confidence of capitalists has been shaken ? — Yes, and confidence of
I can give you several reasons. One is that the incessant requests of the mining 8h£en^ tml
industry to the Government to assist the burdens have met with tardy and very often ®°" '** ^^^*
futile consideration. That, instead of facilitating the lowering of living expenses, ^^'oJ^JJJ^t
nothing: is done in that direction : that, speaking collectively, no desire is shown to to awist min-
reaUy meet the industrial grievances of the mining industry, not even when most "^'^'^-
urgently required. Laws have been passed affecting mines which have been suffering industrial grfev.
great hardships, and on this I quote the bemaarplaatsen question. It was claimed by iS^^iSdiS^
companies who sunk into the ground over £9,000,000 that their claim should have "n»tisfled.
preference. The Gold Law prescribes that the discoverer of gold must have the pre-
ference. The farm-owner is provided for under the Gold Law, and why give him an
additional consideration, and no consideration to the gold company.

I do not want an explanation of the Gold Law. It has been discussed in the
Eaad. Now, the capitalists invested their money first of all when the same condi-
tions existed. How is it that thev have lost confidence now ? What has been done
to shake confidence? When things were worse they invested their money; now
things have been improved, confidence is shaken. — In the first place I must dispute the
improvement in the condition of things ; secondly, the confidence increa-sed as people
recognised and became more and more cognisant of the value of these goldfields. I
will quote a geologist (a man of great repute), who states that within twenty miles
along the reef from Johannesburg, he estimates the gold contents to be £700,000,000. ^w^^terirand
That in itself is quite suflicient to inspire confidence in the value of the goldfields — «^^^ **'^-
assuming such statements to be trustworthy. The general belief also has been all
^ong that the existing industrial conditions will alter. We are now brought face to ^^-gj^o, ^;
face with it, because we see that a good many companies that have been trying to ing industay
straggle all along are graduaUy gi^ way. ^ We also find that it would require ^ '-^
much more for the equipment of the mines than was originally estimated. This
money was forthcoming. At the present moment it is lost

Mr. Smit

How do you reconcile the statements of experts who contend that there are ^J^^^"'" ®^*
£700,000,000 of gold in the fields, with that made by Mr. Albu, who has said that *™*'
unfortunately there has been too great credence given to such reports, and that, there-
fore, many have been misled. In the second place, there are proofs that so-called
gold mines had been floated where there was never anv gold. If such reports are so Bogus flotationB.
reliable, as you say, why were not all the reports obtained before the companies were
floated. — I cannot account for what certain people have done, nor have I Knowledge, Fioutioiw.
nor on the evidence of such opinion do I know that Mr. Albu for that matter made
the statement that these companies were formed, and the shares taken up at a high
price, I will admit and agree with Mr. Albu that in a time of excessive prosperity
great advantage was taken by irresponsible people. But if you take the average
of flotations here, and if you take the temptation that has been held out to make
money out of flotations, and that more advantage has not been taken of it, you will
come to the conclusion that these cases are exceptional I think the temptation is so
peat that to-day, if some firms of reputation wanted to float a company on the
Market Square for instance, they would get the following to take up the shares. But
they have not taken any such advantage. I will admit that theire have been flota-

128 Mr. C. S. Qoldtnann's Evidence.

tions which, properly speaking, should never have come into existence, but they form
a small percentage of tne companies which have been honestly floated.

Now, do vou not think that the flotation of such valueless companies goes much
farther to shaKing confidence than a law which can be remedied ? — I will admit this,
that it has added to the withdrawal of capitcJ. But I say that these people are not
justified in losing confidence for these reasons only, because for the good reason that
companies which, under normal conditions should work, cannot work at all now.

^wt^Sd^the Suppose, uow, you are a capitalist in Europe, and you invest £100,000 in the
mining Indus- Free State, where the laws are bad, and £100,000 here, where the laws are good.
*^- Now, suppose you make money in the Free State, and you lose your £100,000 in-

vested in the Transvaal, where would you put more money into ? — What is a good
and what is a bad law ? My reply would be, I would put my monev into the country
where I knew that, under normal conditions, I would be able to make money.

But here the fact is established, that you can or you cannot make money ? — If
the laws had any bearing on insecurity of title, I should not put my money into that
country where I knew 3iat I had no protection. I can give an instance where we
went to the Government and asked for the alteration of a law to give title-protection.
This Government gave our title, for instance, immediate protection in the construction
of the law regarding excess area.

You have never lost title to a property through defect in the law ? — Yes, through
the interpretation of the law, in the case of the Modderfontein Company on proclama-
tion. We interpreted the law according to the opinions of the first lawyers here.
We took coimsel's opinion on the interpretation of the law, and then we went and
pegged out our claims. The result of it is that through litigation we lost 110 claims,
and we had to buy these back at an expense of £110,(K)0.

Now, is that the fault of the law or the fault of arrogating to yourselves too
much knowledge of the law ? Did you ask the lawyers' opinion before you pegged
off* ground, or after ? — We asked the lawyers' opinion before.

But about every law there are always two different opinions* Now, you cannot
possibly say that it is the fault of the law if the High Courts' decision goes against
'^ou. The question I put to you was : Do you lose money through the defect of the
iw? — No. But there are instances, not speaking persctnally, but some in which
I am interested, where properties on questions of the reading of the law are still in
dispute.
BewMrpiaataen. g^as any law ever been made in this country where property you held is taken

away from you ? — What do you call ownership under the bewcuirplaatsen i I claim
ownership because I have rights, for which I pay licenses.

There you come again into the interpretation of the law, which is arranged by
those interested ? — What I say is, that the law exists, and under the Brickmakers*
Law the hewaarplaataen is mentioned, and that states that we should be entitled ta
the underground rights, and therefore, rightly or wrongly, it is either the defect of
the law or the interpretation of the law. I say it is a defect in the law, and that
under this law the companies had a claim of indisputable ownership.

The Gold Law nowhere gives underground rights, and the bewactrpldcUaen
regulation says that when gold is discovered, that those on top shall have the pre-
ferent right, but that, you shall pay licences according to those you work on the
top? — I can only quote the Brickmakers* Law.

You mentioned a law the other day which you proposed to the Government,
which was once more adopted by the Government Wnich one was that ? — ^The
Pass Law.

la''

Mr. C S. Ooldmann's Evidence. 129

Further, you said that, after endless petitions, the Liquor Law has been intro- uqvLor Law.
dnoed. Do you mean by that that it was the first timie the Liquor Law was passed in Hi»tof>' ©i the

xi_-_ J. ri xT_ - T 11 t •! •!• i» ii 1 i» 1- '■ * Liquor Law.

country ? — ^No ; I mean the prohibition of the sale of liquor.

But you said after endless memorials ? — That was the result of our memorials
for restricting the sale.

I may tell you that the Liquor Law was in existence in 1881. — I only knew that
when I wanted to get liquor for my boys, I had previously only to give him a note to
the nearest canteen, and he would be supplied.

The law passed last year is only the amended law of 1881. — Do I understand
that two laws exist — one prohibiting the sale of liquor in 1881, and another merely
restricting the sale in 1896 ?

There is only one Liquor Law, but it has been amended from time to time. — That
18 theperfection of 1881 culminated in the law of 1896.

The other day you stated that kaffirs had to pay £2 10s. ? — That is the native Tkgation of na-
law. I have it to show that a native has to pay 10s. per hut, including one wife, and ^^
lOsL for every additional wife per year, and tnat he has to pay £2 capitation fee apart
from that.

The kaflir fee is 10s. per hut, and 2s. 6d. for road tax, and he may take as many
wives as he likes, and if he keeps all the women in one house, he has only to pay for
oae hut, so that giving £2 10a you allow each kaffir five wives. Is there no reduc-
taoQ in kaffirs coming in parties of twenty-five through Komati ? — I am not aware of c«tof traMport
that °* ^*^

If you take the trouble, you will find that a considerable reduction is made, if
yoa import them in lots of twenty-five ? — I only know we pay 18s. 9d. per head for
them.

Why do you always look at the dark side of the question, and not at the light
side? — I must acknowledge that I did not know that I can engage a truck for
kaffirs from Eomati at under 18s. 9d. I must say that if this is the case, I am
surprised that it is not done by the manager of the Native Labour Association.

I tell you it is so. You say that from Indwe you pay 18s. per head for travelling
expenses ? — 25s. I said.

Do you not have anything to pay to get kaffirs ? — We get most of them from the
Cape Government. They deliver them here when we pay.

You only pay the travelling expenses ? — Yes. An arrangement of this kind was
eome to between the manager of the Association and the Cape Colony.

Tou have said in your declaration that some mines must pay their dividends in Amortisation ot
order to justify their capitalisation. What do you mean by that ? — What I meant to Smpaniwf°
eoiivey was that some of the outcrop companies have a longer life than others. It is
necessary to consider the gold contents in a company, which is practically your capital ;
therefore, you have to make provision for the amortisation of this capital, because this
esmtal is represented by the gold you are taking out. Every investor would, I should
think, take the life of a mine, or take the gold contents into consideration, and so find
the amount to be redeemed in a given time ; therefore, he will make the provision out
of the profits, because he knows that in the profits and corresponding price to-day is
to be included this amortisation fund.

Now, suppose the profits do not allow them to pay dividends, they do not take
sny of the capital, and still they pay dividends, do you pay dividends out of the
cspital ? — ^That would be the case if you consider the contents of ground capital.

Do you suggest anything to meet the reductions to the revenue that would take oompensatioo
jifct ? — ^My idea is this, as a witness explained to-day : You show a revenue to the 5' gj^**^
Ihate which could be curtailed without any harm, if these concessions are given to •»«« thioagii

130 Mr. C. S. Ooldmann's Evidence.

'^eited '* ^^^ industry, and to the population constituting the mining industry, this will bring
new life into the industry. You must realise you have only got 53 producing com-
panies, of which 20 are only paying dividends. We have over 158 mming companies,
and I believe, and firmly believe, that if there is a reduction, not only of 2a 8d. on
coal and dynamite, but a considerable reduction, the vitality which will be given to
the whole industry, the inflow of capital, the re-starting of companies, the increased
number of people coming to the country, will more than compensate the concessions
which we ask for now ; and that expenditure will be equalled by the revenue, provided
also that sums which, in my opinion, do not belong to the actual working of the
administration, should come out of the revenue. For instance, mines have capital
expenditure and working expenditure — that is what I mean.

I quite agree with you, but at the same time the State as an institution must not

stop and go backward. — I believe the change would be an immediate one. I go further ;

I believe that a lot of companies would very soon start work, and I argue that if we

^SonwiueMue ^^ ^^*' S^^ industrial economics that the depression will become more acute. Things

if relief is not will bccomc worsc, and I think my suggestion will be the better remedy,
su^cs of ex- Can you show statistics as to how the expenditure of the companies is made up ?

compSiM. ^' — ^ have got them with me. There is the statement of the Henry Nourse (statement
Eroenditure of handed in). I can give several more. Mr. Hennen Jennings will give you a complete

Henry Nourse. statement of the working expenses of many companies I am interested in.
Reduction of Do you kuow any rcason why in 1895 the tariff between Port Elizabeth and
Port EUn^th Vereeniging was considerably reduced ? — Representations were made by Commissions,
and vereenig- Do you know why it was increased here at the same time? — The impression

"* " exists that it was in order to bring about no reduction, a^d then the Delagoa.

That is only an impression ; I will tell you the facts. Delagoa Bay railway was
just about being finished, and at the same time the Colony reduced its fares to such an
extent that the administration of the railway asked for tenders to carry stuff from
Vereeniging to Johannesburg ? — That was the object, to charge low rates from Port
Elizabeth — to give no chance to earn monev in carrying goods from Vereeniging in
order to make them come by Delagoa Bay line if possible. If you judge that caae I
would like you to take all these facts into consideration. I only want to explain to
you because somehow you take a wrong view of matters. I don't want to excuse the
Cape Government, they have also sinned.
Transit dues of You alludcd to the transit rates of the Transvaal ; what do you mean by that ?

Transvaal — j£ ^^^ want to bring mcalics, for instance, to Matabeleland through the Transvaal
you will have to pay 3 per cent, duty as well,
^^c^*^ ^cSony What are the transit dues in the Cape Colony and Nat«^l ? — It works out between ;

anaNaui. 3 and 5 per cent.
Increase and fall What do you adducc to be the reason for the value of the mines rising in 1895

?aiu^of'com- and coming down in the same way ? — The rise is due, as I have given in my statement^ :
panies in 1896. ^ several couditious, and the reaction is due partly to over speculation and partly alao ;
to disappointment.

One of the former witnesses declared that the shareholders ought to know the .
value of shares. You have already said that the public gives the value to the sharea ;
— Market value. r

Flotations. The public living outside cannot form a correct value of the ground unless it is.^

told by the promoters of the company ? — I think that touches on flotation. If %v
promoter floats a company, and asks the public to subscribe capital in other countries,
it is done on the issue of a prospectus, and that prospectus gives the objects of flotatioil^^
and the reasons of flotation, and the promoters are responsible for what they say iit-
that prospectus. But when companies are floated privately, and the public asks iot^

Mr. C. S. Ooldmann's Evidence. 131

shares, and they assume to have a certain knowledge, or good reasons for taking up
the shares, how can it be prevented.

Can we assume for a moment that shareholders in Europe take up shares in such
companies on the statements made in prospectuses ? — It is not done in this country.
I know of very few companies which have been floated on prospectuses ; in the early
days it was done.

If it should appear that the public put their money into valueless ground that
eui only be attributable to the promoters ? — I can only say this, that if a law does not
exist, I think it would be a very good law if certain penalties were attached to promo-
ters for misrepresentations in prospectuses.

I do not agree with you that the public give the market value to shares. — If I
form a company, and I bring out a new company, and the public wish to take these
flhares on the reputation of the firm, and take them to a high price, how can I
prevent it.

This morning I heard that the main reef does not pay so well, but there is a rich
leader. Suppose you work the rich leader for two or three months, and the mine
yields an average of 16 dwts., and you float a company, and put their shares on the
market, and people bid for these shares. Then you work the main reef, and bring
down the yield to 6 dwts., are the public then to blame for having put so much money
in it in the first instance ? — In the first instance I would say this, that most of the
companies issue reports, and very lucid reports, from which the shareholders can get
an the information they require. If a company works this very narrow leader lor
market purposes they would be doing a wrong act.

I don't say it is done, but it is quite possible. Did your firm subscribe to the subacription of
dynamite fund ?— Yes ; We subscribed £5,000 ^ ^ c^'T^e rS^!

Did you take it from your companies ? — We did not take sixpence from the ^»^^^ '^d.
eompanie&

Chairman :

You give a long historical story of the whole matter ; but it is, shortly, reduced
to this, that what r^ly the industry requires is lower railway rates, cheaper dyna-
mite, and popular administration of the Pass Law and the Liquor Law ? — if o ; I say
that it is not going to satisfy the whole of the country.

Still that is what the industry requires from the Government? — No, I want ^^po^ duties.
aomething further ; what I suggest is the reduction of import duties ; and I want to cost of living.
aee that living expenses are reduced. A great drawback is the expense of living in
the countrv.

How aoes the living here compare with other places in South Africa ? — Con-
aderably more if you compare the salaries given here with those in the Colony. Take House rents.
iKmse rents alone. I know people who have got in Natal houses at £5 and £7 10s.

Kr month, and here you have to pay £40 or £50. Take men living on a mine. At
e Wolhuter there are 50 miners married, and they have to live in town or away
iBrom the mine. Their house costs them between £7 10s. and £9 per month. That
lent is high I can understand, it is the question of capitalisation. A man builds a
bouse and wants to get as large a percentage as he can on his capital outlay, because
if, as he assumes, the conditions alter and the freights come down, he knows that, House vaiuesand
neobably in three years time, the houses built to-day would cost considerably less. '*^*^^' '*^-
fjoDsequently he wants amortisation of his money. That is why rents are so high.
[ C« course that would all be reduced if the railway rates were reduced ? — I should
to give another instance. It concerns myself. I bought a house this year for
,500, and it has been valued by the Sanitary Board at £22,500. I objected, and ^^^ ^"^

132 Mr. C S. Qoldmann's Evidence.

the valuation was reduced to £17,500, in spite of the proof I brought that I had pur-
chased the house 6ona^^d« for the sum named. I therefore have to pay taxes on
£17,500, which is a hardship. I should like to say that in the £7,500 the sum of
£1,400 is for the stands.

That is an entirely different question. You prove that the building cannot be
excessive ? — I say I am wrongly taxed. I have bought in the open market ; this man
sold me nothing cheap.

The Sanitary Board here represents the public, therefore you do not put this as a
grievance against the Government ? — No, certainly not ; I am only speakmg about the
expenses of living here.

But that is a grievance against yourselves. Now, yesterday you suggested, as*
regards the execution of the Pass Law, and Liquor Law, that the Government should
form an Advisory Board here of persons largely interested in these fields. Can you
suggest any scheme how such a Board would be constructed — what would be its
functions, duties, and its rights ? — I will take the Pass Law for instance. An incor-

'^ t board™ Pirated Government Board should be formed, who shall have powers vested in them
to amend and alter that law from time to time as they may consider fit. They shall
have funds — say, the result of passes — placed at their disposal. If it is possible, let
the Government make members of the mining industry members also, as in the Hos-
pital and Sanitary Boards ; then you can have this Board constituted by officials of the

AdviBory board. Government and members of the industry. But if the Government cannot see their
way to do it, then we must have an Advisory Board, and if there are any suggestions
for the alteration and the amendment of the law or its administration, the Board would
consult with the advisory members of the Board.

I fear if we adopt that system, the kaffir, instead of having to pay 2s., would have
to pay 5s., just on the same lines as in the case you have mentioned in regard to the
Sanitary Board. It will be a second Government within a Government. I consider
it an unhealthy system. The law must be properly made — and it can be made
properly without that Board — as formerly by yourselves, and experience will teach
every time how we can amend and improve it. The Government must appoint such
officials, and in sufficient number, and police for the carrying out of that law. So
long as there is a want of that the public have always the right and liberty to petition
the Government about it. I think this would be much better than establishing a
Board here to carry out the law.

Mr. de Beer:

You said yesterday that many of the mines were stopped for want of working
capital ? — Yes.

Now, if the industry and Government together can effect a saving of 6s. per ton

thereby creating a profit on the production of gold, do you think that money will be

available at once to re-open these mines ? — I certainly think that the effect on some

of the companies, which are just making a very small profit to-day, and to whom a

Bflecte'of a sav- profit of 68. per tou would make great difference, would in itself bring about a great

toSonwori^g chaugc in our favour. I don't say that even a reduction of 6a would bring many

oo«t8 of mines, ijiincs iuto life again.

Not the majority ? — No.

^oridn" coeto What do you think the reduction ought to be to bring the majority into life
required to again ? — That is something I wish to bring before the Government. We ought to be
of mirSi' Mto able to work here at from 15s. to I7s. 6d. per ton. If we were able to do that you
work at a pro- ^quM scc a Very different state of things very shortly from what we have to-day.

Mr. C. S. Qoldmann's Evidence. 133

I understand from other witnesses that there is a large amount of around which
be worked with profit in case the production costs can be reduced ? — ^Yes ; cer-
tainly.

Are there many outcrop companies which give from 4 to 6 dwts ? — Yes.

And these give a profit if they are worked at 15s. 6d. ? — Yes ; very handsome.

At 4 dwts. ? — No, not in reduction ; 4 dwts. is not enough. There is an irreducible
limit, and that is too low.

I take as a case the Geldenhuis Deep Level. This morning a diagram by Mr. oeWenhuisDeep
Seymour, splendidly executed, was handed in, in which it showed that deep level near
the danger line. — We must make allowance for outcrop mines having greater facilitiea

Now, what difference would there be between the outcrop mine and the deep
level to make the deep level pay ? — The case is a difficult one, because the Geldenhuis
Deep are working a very wide reef. If you go to the West Rand you find companies
are working a very narrow reef, and the working expenses are consequently more.
They have to work more ground for milling purposes, and it is only by sorting that sorting.
they can bring up the average.

In the companies you mention is it a general method to sort ? — ^Yes, they all sort.

Now, about the Pass Law. You say the law was made by the industry, and that pass l » w :
yoa now find defective clauses in it ? — Yea J^uiJ^?*"**

Have these been altered ? — One has been altered in regard to the fines. One
defect I ])ointed out to-day.

You will agree that these defects only appear when you work the law ? — Yea

Upon the improvement you say that the Uovemment makes £75,000 out of passes sute revenue
akme ?— I think I said about £54,000. fromp«.fee^

That gives a total of £150,000 in passes, Boksburg and Kinigersdorp included.
Toa said that money goes to enrich the Treasury ? — ^The net result I think.

Are you a member of the Hospital Board ? — Yes.

Do you know how the Hospital was called into existence ? — I know exactly.
Formerly they got all the pass money ; now they don't get all the pass money, but
they get £26,000 grant from the Government instead. What we asked in the Pass
law IS not to get the 2a, but I particularly laid stress on it yesterday by referring
to the Draft Law. We do not ask for the la the Government always used to get,
bat -we ask for the additional la we subscribe for administrative purposes.

Mr. C. S. aoldmann's Evidence.

Q
I-

<
a.

o
o

•B

-.1

!::

ill

i^i^Ssss

?l^§li^i§i

n oo ■* uj" CO af rf »■»" -

isasl'sSiSSa" '

laa-ss ill

■5 . .1-

II ^J

•3-5

i§

Mr^ C. S. Ooldmaiin'8 Evidence.

135

HENRY NOURSE GOLD MINING CO.. LTD.

Details of Expenditure for Year ended the Slot Decemberp 1896.

Heading.

NatiTe Labour

Native Food

White Labour, Salaries, &c. {see footiiote)

^^Waft ••• ••• ••■ •••

j>^iiaiiiite... ... ... ...

CraoKle ...

ttUlU ... .. ...

Mining Timber
Timber, Deals, &c.

Oib, Greases, and Paraffin ...

Ropes (Steel and Manilla) ...

Forage, Chaff and Bran

Bec^c Spares

IGn Spares, Shoes, Dies, Cams, Cam Shafts, Stems,

Mortar Boxes, and Screening, &c
Thicks, Wheels, and Rails...
Kpea and Pipe Fittings
Fue and Detonators
Bar Iron, Nuts, Bolts, Assay Chemicals, Mercury, &o.

~ Charges (see footnote)

lieenaes and Rents
FHoting and Advertising . . .

Totals ...

Amount..

s. d.

48,241

7,620

45,295

11,130

18,884

3,207

285

2,155

931

1,473

1,877

2,230

308

1,010

196

7
9
5
0

4
5

5 10
4 5

4 11
16 7

3 0

5 11

4 8
1 7

1,350 16 11

448 13 2

884 6 1

1,043 17 6

6,890 13 7

6,772 4 7

1,131 7 7

847 2 6

S51 5 2

164,468 14 6

Cost per Ton.

10
1
9
2

4
0
0
0

5*448
7-556
9*786
4-944
1108
8-341

•741
5-604
0 2*422
0 3-831
4-879
5*799

•801
2627

•609

0
0
0
0
0

0 3-612

0 1167

0 2-299

0 2*714

1 5*918
1 6-610
0 2-942
0 2-203
0 913

35 7-674

Percentage.

per cent.

29-332

4-573
27-540

6-767
11-476

1-950
•173

1*310
566
-895
-142
-366
•187
•614
•130

•821

•273

-537

•634

4-190

4^117

0*690

0-514

0*218

1
1

100*000

VOTEL — General Charges include the salaries of the Manager, Mine Office Staff, Engineer, London and
Jcdiannesburg Offices, and Directors* Fees.

MEMO. OF SUNDRY COSTS, &a

CO0T or Rouin> Coal at present time is 20s. per ton, delivered to bunkers ; 5 years ago was 238. per
loo, delivered to bunkers.

Com or Dtnahite (Gelatine) at present tinie is £5 7s. 6d. a case, plus Is. for cartage ; 5 years ago
|rioe was £6 12s. 6d. a case.

White Men and Natives.— At present the Company employs 170 White Men, 1,660 Natives. With

a fisw exceptions, all White Men are housed by the Company tree. Rates of white wages at oresent,

\V^ 4-34d. per day ; 5 years ago, 16s. 7-02d. This includes salary paid to the Manager and all Mine

[Qilrraln, but does not include Diiectora' fees, or London and Joluumesburg Offices. Rates of Native

Wages at present^ 2b. 2*84d. per day ; 5 years ago, 2s. 2-38d. per day.

Sundiy oosts of
Henrr Noune
0.11. Oo. ..i^

Ooet of oofti on
Hennr Noune
in 1882 and in
1887.

Coflt of firelatine

on tfenry-
Noune in 1882
and in 1897.
Whiteand native
wages on Hen*
17 Noune in
1892 and .in
1897.

Waste Rook.— For 12 months, to 30th June, W, sorted out 23 per cent. ; for 6 months, to 3l8t Sor^on Hen-
tber, '», sort0d out 19 per cent. i^Noune.

136

Mr. C S. Ooldmann'8 Evidence.

BONANZA. LIMITED.

Statement 8l|owing Details of tl|e various Expenditure from September to

Deoen|ber| 1896.

specification.

Amonnt.

Cost

per Tod.

Peroentagv.

£ s.

per cent.

Native Labour

2,920 10

7-4

Ill

Native Food

913 9

1-6

3-6

White Labour, Salaries, &c.

8,643 5

8-7

331

V/O&l ••• ••• •■• as*

3,221 15

11-9

12.3

Dynamite

1,490 17

10-2

5-8

Cyanide

740 0

110

2-9

■ illlC •*. «*• a*. aa*

Mining Timber

326 17

4-8

1-2

Timber, Deals, Ac.

1,354 8

8-1

6-2

O^OUl ••• ..a a*. a.a

103 0

1-5

•4

Oils, Grease, &c.

677 13

10-0

2-6

Candles

146 18

2-1

•6

Ropes (Steel and Manilla)

Porage, iic.

84 19

1-2

•3

Electric Spares

260 18

3-8

Mill Spares, ^., &c., &c, ...

312 1

4-6

1-2

Trucks, «&c.

80 4

•8

jl xyjxss ■•• «.• B.« «aa

175 3

2-6

•6

Fuse and Detonators

58 13

0-8

•S

Bar Iron, Nuts, Bolts, Assay Machinery, &c.

629 15

9-3

2-6

General Charges — ^Transfer Office, London Office,

Mine Office, and Salaries

3,598 19

5-5

13-8

Insurances

310 16

4-6

1-2

licences and Rents «»«

42 0

0-62

Printing and Advertising

23 4

0-3

•1

Tot4il

X26,115 14

3-72

100-0

Mr. C S. Qoldmann'8 Evidence.

137

NEW MODDERFONTEIN G.M. CO.. LTD.

Expenses from Ist May, 1896, to Sist lll[arch| 1897.

[Calculationa hcued upon 81,935 Tons Milled.]

WEST MINE.

Value.

Cost per Ton.

Percent.

£ s.

s. d.

Ifative Wages

34,524 11

8 5-13

29196

2^ative Food ...

6,675 11

1 7^56

5-646

White JLiabour (Salaries) ...

35,564 0

7 8-45

26689

Ooal .^

6,987 14

1 8-47

6^910

\>jnajnite

9,096 2

2 2-64

7-693

Cyanide

1,135 10

3-32

•962

3dinc

212 0

•62

•177

Mining Timber

1,693 10

4^96

1-433

Timber, Deals, &c.

373 11

109

•317

Steel

1,547 18

453

1^310

Oils, Grease, Paraffin

978 15

2-89

•826

Candles

1,432 15

4-19

1213

Ropes, Steel, Manilla

219 4

•64

•187

Forage, Chaff, and Bran ...

1,328 9

3-89

M25

Electric Spares

137 13

•40

•118

Mill ^>ares ...

1,022 18

3^00

•866

Tracks, Wheels, Axles ...

642 0

188

•545

Pipes and Pipe Fittings ...

551 5

1^61

•468

Fuse and Detonators

784 0

2^30

•665

iiandry Stores and Machinery

7,174 7

1 901

6067

<leneral Charges

1,975 3

5^80

1^670

Licences and Bents

216 14

•63

•185

Printing and Advertising...

1,458 5

4^27

M99

Town and London Offices

6,541 11

1 7^16

5533

118,273 14

28 10^44

100

138

Mr. C S. Ooldmann'8 Evidence.

TREASURY GOLD MINES. Ltd.

Statenient showing Details of the various Expenditure during the Year

ended March Slstp 1897.

Specification.

Amount.

Cost per Ton.

Percentage.

£ s. d.

Per cent.

European Wages

19,691 9 2

4-302

22-2

Native Wages

17,964 7 5

10-662

21-2:

Contractors ...

3,849 14 5

0-571

4-a

Miscellaneous Cash

312 6 9

1-009

-3

General Charges

8,101 11 4

2*455

9-2

Native Tjahour Supply ...

3,532 14 4

11-536

3-^

Coal

9,850 19 1

8-168

Explosives

8,608 3 10

4-109

9-T

Native Food ...

4,287 2 5

1-999

4-9

Cyanide

2,840 14 0

9-286

3-2

Zinc Discs

261 17 9

0-855

-a

Candles

992 2 10

3-239

Oils and Grease

880 16 5

2-876

Drill Steel ...

311 13 6

1-017

-a

Tools

202 15 5

0-662

•2

Chemicals

590 0 6

1-926

•a

Mercury

133 17 6

0-438

•1

General Stores

2,629 12 6

8-587

2-9^

Battery Fittings

920 6 6

3-005

1-0

Packing and Waste

310 13 5

1-024

-a

Bolts, Nuts, Washers, Bar Iron, <fec.

382 17 4

1-250

•4

Mining Poles .. .

148 16 7

0-485

-1

Shoes and Dies

813 12 9

2-656

•a

Rock Drill Spares

369 0 2

1-204

•4

Boiler Tubes ...

555 2 8

1-812

•6

X 0 lai ... ... ...

£88,542 7 7

£1 4

1-133

100-0

Tonnage, 73,496.

■

Mr. C. S. Qoldmann'8 Evidence.

189

THE WOLHUTER GOLD MINES. Ltd.

Staten)ei)t sliowiiig Details of Working Expenditure for the Year eqded

December 31st, 1896.

Specifications.

Amount.

Cost per Ton.

Percentage
on Total

X 8.

s. d.

per cent.

Native Labour (including Contractors

and Redemption

• • •

54,402 6

7 9-8

28-4

White Tiahour do. do.

• • •

51,248 11

7 4-3

26-7

Charges, General Printing, dec.

• • •

1,998 2

3-5

1-04

London Office Expenses ...

• • •

891 2

1-5

0-5

Directors' k Financial Committee's Fees

1,250 0

2-1

0-7

Parift Agency ...

129 12

0-2

0-07

Committee of Investigation

533 6

0-9

0-3

Native Labour Expenses ...

4,312 7

7-5

2-2

Cyanide Royalty

5,360 16

9-3

2-8

Insurances

577 17

010

0-3

Claim Licenses ...

655 0

0-45

Stamps, Telegrams, and Cables

126 1

0-2

007

Stores (including Contractors)

Vi/xJEU ... ... ...

21,152 3

3 0-6

11-07

Gelatine

17,014 3

2 5-3

8-8

Cyanide

4,293 19

7-2

2-2

^biinc ... ..• ...

234 18

0-3

0-1

Mining Timber

2,156 19

3-7

1-2

Timber, Deals, &c.

246 13

0-5

0-1

Steel (Drill)

2,503 3

4-3

1-3

Oils, Greases, and Paraffin

3,013 4

5-2

1-6

Candles

1,815 6

3-1

0-9

Forage, Chaff, and Bran ...

763 0

1-3

0-4

Electrical Spares

375 6

0-5

0-23

Mill Spares, Shoes, Dies, Cams, kc

• • • •

2,862 1

4-9

1-5

Truck Wheels, Rails, <kc. ...

349 1

0-6

0-2

Pipes and Pipe Fittings ...

137 11

0-2

0-07

Fuse and Detonators

2,243 3

3-9

1-2

Bar Iron, Nuts, Bolts, kc.

279 4

0-6

0-1

Native Food

8,248 19

1 2-2

4-3

Sundry Stores ...

2,261 4

3-9

1-2

Totfid Working Expenses for Year

£191,435 11

£1 7 6-7

1000

140

Mr. C. S. Qoldmann'8 Evidence.

CROWN REEF.G.M. Co.. Ltd.

Statement showing details of tlie various Expenditure during the Year ended

December 31st, 1896.

Specification.

Amount.

Cost per Ton.

Percentage.

£ s. d.

8. d.

per cent.

Native Labour ...

63,902 a 1

6 5-365

24-146

Native Food

12,305 15 10

1 2-898

4-650

White Labour, Salaries, ^tc

77,222 8 3

7 9-491

29-180

^^OwU •■• ••• ••• •«•

25,909 14 5

2 7-368

9-790

Dynamite

24,995 18 2

2 5172

9-105

Cyanide ...

8,324 3 5

0 10-077

3-146

Zinc ... ... ... ...

578 8 8

0 0-700

2-219

Royalty ...

7,907 6 3

0 9-573

•989

Mining Timber ...

2,091 5 0

0 2-531

•789

Timber, Deals, Sui,

2,003 8 10

0 2-425

1-759

oiieeA ... ... .. •..

8,491 4 9

0 4-226

•819'

Oils, Greases and Paraffin...

2,300 9 10

0 2-785

•869

Candles ...

3,175 3 1

0 8-844

1199

Ropes (Steel and Manilla;

805 11 1

0 0-975

•304

Forage, Chaff and Bran ...

1,549 13 3

0 1-876

•585

Electric Spares ...

2,915 0 4

0 8-529

1-001

Mill Spares, Shoes, Dies, Cams, Cam-
snafts. Stems, Mortar Boxes,

. .

•

Screening, &c.
Trucks, Whee& and Rails...

4,027 8 7

0 4-875

1-522

1,830 5 5

(K; 2-215

•691

Pipes and Pipe Fittings ...

953 13 8

0' 1154

-360

Fiue and Detonators

1,516 17 10

0 1-836

•572

Bar Iron, Nuts, Bolts, Assay Chem-

ioils. Machinery, ^tc

11,567 0 5

1 2-006

4-370

Lisurances ... £1,440 7 0\

Gen. Charges, Sundries 1,412 0 5

Licences and Rents 205 0 0 -

Quartz Account... 1,187 6 1

dec 7-463

Printing & Advertising 1,913 16 3J

6,167 9 9

Oil. -010

2*330

Total ...

£264,640 12 11

£1 6 8-394

99*996

Sundry coet^ MEMO. OF SUNDRY STORES, ETC.

O.M. Go.
Ooct of ooal on CoST OF RoUND COAL.--At pi

■esent is ISs. 9d., delivered on Mine ; 5 years age

\ waa 218.^ delivered

1897.

Ooftofdraamite CosT OF DYNAMITE.— At presmit £5 78. 6d. a case— ^latino— carnage Is. 9d
J'eUti'Sfto ago, £5-No. 1 Dynamite.

« per case ;. 5 yeacs-

White and native WuiTS Men AND Natiyes.— At present the Company employs 231 Whites
wages on About half the white men are housed by the Company, free. Kate of White
ki'i^ d^ ^^^ ^^' ^<>'^' ^ years ago, £20 Is. Id. This includes salary paid to the Man
1897 Officials, and also includes Directors' Fees, both London and Head Office and Lon

and 1,695 Natives.

Wages at present*,
ager and all Mine^

don Secretary, i.e.»

alU Rates of Native Wages at present, £2 12s. 7d. per month of 24 days ; 5 years

ago, £2 15s. 7d.

So^njfon Waste Rock.— None Sorted.

Mr. M. Lubeck'8 Evidence. I4i

Mr. Martin Lubeck was the next witness called. He read the following Mr. Martin La-

statement : — dence.

As so many details have been given by competent men, I should like to refrain
from giving further details, and restrict myself to general remarks. The question of ^^J^SJ"* ^®'
the day is f ocussed under that one point : " Is it possible to put an end to the prevailing
depression, and to create prosperous times again ? " My idea is that it is not alone
possible, but that this is at the same time not so difficult at all. In reverting back to
the former times of the industry, we find that only reefs giving an ounce per ton were payable reefe.
considered payable, whereas, at the present time, reefs giving half that value, say
10 dwts., over the stoping width, are giving reasonable profits. The principal reasons
of this are the great progress in the methods of extraction, and the great improvement
in the machinery. Without these improvements the industry would surely have
remained pretty small, for there are very few pro^sitions which yield an ounce.
Now, we fiJl hope that further progress will be made in the methods of extraction as
well as in machinery, but we cannot rely on that, and so at this moment we can better
the state of things only through a material reduction in the working expenses. We ^^^^^ ^o^
must not lose sight of the fact that, wherever large industries have sprung up, the requinS.
working costs of same are continually decreasing, and that, in anticipation of a similar
process here, enormous sums have been invested here in low grade propositions. These
smns would be lost if that process of gradual reduction of the working costs should not
go on, and that would all the more be regrettable as the assumption under which the

' mvestment has been made was auite justified, and as, if this money should be lost, it
would act as a severe check upon fresh capital being introduced. In Americaand Australia,
mines of much lower grade have been made payaole, as I am told. My opinion is now
that it is possible to reduce the working cost by at least 6s. per ton, and I am convinced Powibie extent
that, in ca,se we get to that, the actual depression would at once be superseded by a woru^gMff^
new era of prosperity. The dividends given by the mining companies in 1896 Dividendi of
amounted to about £1,500,000. The amount of tons crushed monthly is at present °*^** tnisw.
about 400,000, and a saving of 6s. on this quantity would amount to £120,000 per Tonnafecruihed
month. That would mean £1,440,000 a year, or, in other words, through such a aiS wo^iaving
redaction, the dividends paid by the mines of the Rand would at once become twice as p<»*^i«-
much as they are now, and this fact alone would, in my opinion, be quite sufficient to
restore confidence in Europe, whereas, on the other hand, it would also allow a great
nomber of properties which do not pay at all now to be regarded as payable, and to be

' taken in hand. How do we now come to the reduction of 6s. per ton ? I think it not
vary difficult to obtain this. It requires nothing but honest work and energy on the
part of the leaders of the industry, and a willingness on the part of the Government to Government co-
help as far as possible. As regai'ds the management of the mines, for which the leaders oS?^ *to n-
of the industry are responsible, I am quite sure that moat of these men are constantly ^^ worWng
trying to improve the administration of the mines, but 1 think that much can still be
done m this respect, and that they ought to apply to that their utmost energy and
ability. As regards the Government, I think that in case they give the industry
reasonable reductions in the railway rates and the price of dynamite, this would effect Reduction of
a direct saving in the working costs of about 2a per ton. The leaders of the industry JJ^Tpricr*©!
are now already trying to re<race the kafir wages by 30 per cent., and if they succeed jtSuctionof na-
in that, which, in my opinion, they can do if they can get the support of the Govern- tive wagea,
ment, this means another saving of 2s. Now, I am qmte sure tnat the reduction of
the railway rates and of the kaffir wages would cheapen the general conditions of
living to such an extent that it would hd possible to save another 2s. by reducing the Reduction of
white wages, the prices of stores, &c. As regards the general conditions of living here, «*t»o'w^n«f-
thev are, as everybody must confess, exceptionally high ; and I think it is difficult to

142 Mr. M. Lubeck's Evidence.

find any other country in the world where they are as high as here. What is the

GauMs of exces- reason of this ? In European countries the conditions of life depend to a great extent
u^.°^ **' on the wages which the day labourer gets. These wages are, so to say, the basis of
the whole cost of living. In all greater works, as agriculture, construction of railways,
building of houses, transport of goods, the wages of the day labourer represent a big
item, and, besides that, if you give a day labourer, say 3s. per day, you are compelled
to give a skilled labourer something more, say 4s. or 5s. per day, a clerk perhaps 8a
per day, etc ; and so the whole scale of wages, and further on, the whole construction
of national economy, is built upon the wages of the day labourer. Now, as regards
young countries whose industries are still m their infancy, and who have to import
merchandise of every kind, the same principle prevails, with the addition that, of
course, the freight rates play a most important part. I should, therefore, like to

BeducUoD of na- poiut out that the wholc conditions of life here depend on the wages of the kaffirs and
re'ifwiiSf ^?i^ OT^ the freight rates, and that, if we can succeed in reducing these two items, the cost
iieceasary. of living will bccome cheaper, and the value of the mines far greater. As regards the
reductions which the Government is requested to grant to the mining industry, it is
quite clear, and it has been proved by former witnesses, that the railway rates are
excessively high, in fact so high, that it is astonishing that they are still allowed to
prevail. I understand very well that the Railway Company were allowed in their
concession to charge high rates, because in these times the traffic was not very large;
but now, as the traffic has become of an importance never dreamed of, a considerable

The Government rcductiou is Only too reasonable. It is true that the Railway Company is, so te say, a

^^y ^\™g'. private company; virtually, however, the Government is master of the railway,

"^^oJ^^*p«>- and can dictate the rates, because if the railway would not conform to them, the

Government have the right to expropriate the railway, and the Government would, in

Redaction of this casc, do a Splendid business. There is only one point to be considered in this, and
wSi'tL 8ute ^^^^ is the possibility that through a reduction of the rates the share of the
revenue. Government in the profit would decrease in such a way that the Budget of
the State would be endangered by it. Now, it is my firm opinion that the
profits would not at all decrease, because a reduction of the rates would
aoubtless bring a far greater traffic, for the simple reason that it will bring
forth greater activity in mining, agriculture, ete. But in the unexpected case
of a material decrease, such could not at all endanger the Budget. The

^Mid*the^ wr- Budget of this State is more splendid than the Budget of any other State in the
piuB. world. The Budget for the current year leaves a certain surplus, though the heavy

extraordinary expenses for different works and material have been brought into
account as ordinaiy expenses, whereas anjrwhere else such kinds of expenditure
would figure as extraordinary items, and would not be covered by the current
revenue. I estimate this extraordinary expenditure at about £1,000,000, and, beside
that, the profit of the Government in the railway business for 1896 has been
estimated at only £500,000, whereas it will probably amount to one million — that is,
£500,000 more. The real result of the Budget is therefore a surplus of £1,500,000.
This is indeed a most marvellous thing, and the State mav be congratulated on the
Budget, for it is quite clear that other young countries are generally in want
of great amounts of money, and have to raise big loans in order to develop the
country. A great and very rich State like Great Britain has for the financial year of
1896 a surplus of £1,500,000, and you have no doubt read in the papers what extra-
ordinary pleasure this surplus causes. A surplus of £1,500,000 in the Transvaal
means £10 a head, as I take the white population to be 150,000, the black population
not coming into consideration. If, for instance, Germany, with a population of
52,000,000, could make a propoi-tionate saving, this would mean £520,000,000, and I

Mr. M. Lubeck's Evidence. 143

think that would be sufficient to repay the whole debts of the German States. It is TheStoteb^et
hence quite clear that the consideration of the Budget need not hinder the Govern- tionofmui^n^y
ment from reducing the railway rates, provided the Government supports the mining '**®^
industry, from which the revenue of the State is drawn, and this support of the
mining industry is just done by reducing the rates. Touching the question of ^^^^^^fn toe
dynamite, I think the erection in this country of a factory for such an article must be ^P" vj*' *"'
considered as an economic error, as the factory has to import all the raw materials, ^^
these not being found in the Transvaal. I once saw a dynamite factory belonging to
the Nobel Company, situated on the banks of the River Elbe. Of course, such a factory
has, besides its cheap wages, cheap machinery, etc., the great facility of getting its
material by water at a low rate, and of shipping its manufacture in the same manner.
I think if a factory in this country, with the big cost of everything, can sell dynamite
Na 1 at 85s. with a profit, then that factory on the Elbe should be able to sell it at
about one-fourth that price and make a nice profit still. Besides that, the factory here
is only producing a small part of the dynamite wanted in this country, whereas it
imports the greater part and sells it at an enormously high price, which it ought only Profits on impor-
to cet for stuff manufactured here. This is clearly unjust, and I think it would not **^ dy°*™it«'
be aifficult for the Government to obtain for the industry a considerable reduction in Eeductionof the
the price through negotiations with the dynamite factory, unless the Government SlJ^orcanSa^
prefer the cancellation of the monopoly. It is a known fact that all the goods manu- dyn°ami?l
iactured on a large scale are bound to become cheaper from year to year through monopoly.
improved methods of working. As an example I would quote the case of cyanide : Monopolies and
if a monopoly for the manufacture of cyanide had been granted here, the industry pri^e'o^^cyMi*
woold have to pay a certain price, probably based on the price of the article which »<*«•
formerly prevailed here, as is the case with the dynamite, whereas the consequence of
the free competition in cyanide has brought the price down in a few years from 30d.
to lid. a pound. I repeat that I refrain from details, and I think that these general
remarks are quite sufficient. I am firmly convinced that the Government in giving
ihe above-mentioned facilities, and in working hand-in-hand with the men of the
industry, will effect an early restoration of confidence and prosperity. In conclusion,
I should like to refer to a suggestion which has already been made. In European
countries the authorities generally consult financial, commercial, and industrial men Advisoiyboaids.
in all questions regarding freight ratos, customs, construction of new railways, ete.
Perhaps it would suit the Government here to do the same. Amongst this large
community in Johannesburg there are men from every part of the world, and I think
th^re are a number of men who understand these questions very well. I think it
would not be difficult for the Government to select from these men a certain number
of persons in whom the Government could have entire confidence, and whose
experience could be advantageously made use of by the Government.

Mr. Smit

You are manager of a financial company ? — Yes.

You remember the fund that was created for the dynamite disaster ? — Yes. ^"c^olm^^SM* to

Did you make a subscription to that fund on behalf of the company, or as chai?tabiepur-
inan^er personally ? — Oh, no ; on behalf the company. '*****•

Every person does not subscribe himself? — Sometimes they subscribe themselves;
the directors of financial companies have the right to give certain sums for such

Can you give to charitable purposes without the consent of shareholders ? — Yes,
of course, if it is not a big sum ; the subscription must be within certain limits,
although a director of a company must have certain liberty.

144 Mr. M. Lubeck's Evidence.

Supposing I was the holder of 20,000 shares, and living in Elorope, and in th»
absence of special instructions would you be justified in giving £2,000 ? — I would not^
and I have not done it.

You can subscribe without the consent of the shareholders ? — ^As a director I
must have certain liberties.

As far as is wanted for business? — Yes; but the shareholders, in electing me aa
director of a company, must have sufficient confidence in me. I am responsible for
what I do, because at the end of the year the books are audited, and if I have done
anything to which I am not entitled, then I lose their confidence. My shareholdera
have great confidence in me ; if I were to request a greater amount for investment,
I would get it to-morrow. I have just received an application in that respect, and I
have answered that I don't recommend investments in this country, because I cannot
see the prospect of good times until we get a material reduction in the working
expenses.

These are two entirely difierent matters ? — Oh, yes ; but the directors have a
certain right in spending certain sums of money ; they cannot spend thousandls and
thousands. But they have this privilege everywhere. My bank in Berlin always
contributes certain sums to such purposes ; you can see from the papers every day
that all these companies do thia

^Ms'^^Mid'^^r* '^^ ^^® ^™® ^^ ^^® ^^^^ ^^^ y^^ contribute to a -syndicate for the expenses
Lubeck's com'- incurred ? — No. My company had nothing to do with the raid at alL
'*"^' Not for the expenses made in Johannesburg ? — What expenses ?.

There was a relief fund in Johannesburg ? — No, we never contributed to that*
I would not have given anything to it.

Mr. Hugo.

aeductionof the You Say there would be a 4s. per ton saving if certain reductions were made in
mite *and^"of ^^® pricc of dynamite and railway rates. Now, to what price must dynamite b»
ndiway rates, rcduccd to bring about that ? — It is difficult to fix a price. People have already stated
that the price ought to be reduced to half the present price, but I don't know whether
it is possible. But I think if you reduce the price of dynamite by one third only,, and
if you reduce freight rates considerably, especially on the coal, and if the railway
The transport of transports coal in a more practical manner. I have never seen coal transported ia
^^^^' bags. If the railway transports coal in a practical way, then I think about 2s. can be

saved out of dynamite and freight rates. It is difficult to fix the amount of saving,,
because these expenses are difierent on difierent mines, and depend on difierent cir-
The reduction of cumstauccs. The other 2s. would come out of a reduction in kafir labour.
MiSilfon S te. If the reduction of 6s. per ton takes place, will a low grade proposition improve ?

r!^n° wn? — ^^ there is only a prospect of getting the reduction of 6s., the whole situation will
fldence. alter at once. , My opinion is that we can get back the confidence of European share-
holders— ^not through words, but through dividends. Such a reduction oi 6s. would
increase dividends enormously, and such a state must restore confidence, there is no
doubt about it. If I knew we could get this reduction, I would write my people at
home to invest large sums here,
aeduotion of It is Very doubtful if you can get a reduction of white labour of 2s. per ton ? — -
by**reduc^ "^^ third 2s. per ton represents more than white labour ; it includes stores, timber, &a
of oortB of liv- And consequent on the reduction of the railway rates ? — My idea is that the
°^' whole cost of living will become cheaper. It is very high here. Of course it must be

higher than in Europe, and even in other transatlantic countries. But here it is
exceptionally high. I at one time could not comprehend it, although I have seen &
great part of the world.

Mr. M. Lubeck's Evidence. 145

Mr. Smit.

Do you know the proposed south line from Elandsfontein to Roodepoort ? — Yes. ^ E£„,J5to|53^
Don't you think if it is carried through it will do very much to reduce the freight Roodepoort
of coals ? — It is difficult to say. I have not studied it ; but I think the principal 2S5 trSfflc.^*
purpose to be served by that line will be to secure a regular supply of coal for the
iDine& This supply has sometimes been irregular on account of the enormous traffic.

Mr. SchmUz-Dumont

What is a fair dividend to expect a gold mining company to pay ? — My idea as a Dividendsofgow
fimuicial man is that you jnust expect a high dividend. One day I heard a compari- °"°*''
son was made between a railway and a minmg company, but I assure you that I have
had a large experience in financial matters, and in Europe you make a great difference
between a railway share and a mining share, and especially a gold mining share.
That is, a railway share is generally considered as a safe investment, and men who
have to live on the interest invest in railway shares. But such men would not invest
in gold shares. Besides which, there is another point. A dividend-paying gold
mining company does not represent interest alone. A mine has a certain number of
years of life only. If you take the dividend as interest, then after a certain number
of years you will have seen that you have made a very nice interest, but that your
capital has disappeared. You must calculate a certain part as amortisation.

There are 54 companies on the Band who altogether declare dividends amounting Dividends of
to 4^ per cent. ? — But that is no dividend at all for mining companies. The whole S^Jig *<»m^
situation here is that big dividends are as vet only expected ; but I think if we get ?»»"«••
normal conditions here companies will make good dividenda For instance, take a
company with a capital of £80,000. I know such a company. If you reduce kaffir Dividends and
wages by 30 per cent., as is proposed, it would mean for this companjr a saving of JJ|JrtS^«)ita^
£12,000 per year — that is 15 per cent, dividend. If we get a reduction m freight and
dynamite, this would equally mean a saving of 15 per cent. ; and if we get the other
redaction in white labour, alter having created normal conditions of life, it will make
anofcher 15 per cent. And so this company, the shares of which are now about £5,
and which gave a dividend of 40 per cent, this year, would give after these reductions
a dividend of 85 per cent. So you see what I say about the renewed prosperity
would be fulfilled if the people in Europe see that the profits of mines increase in such
a way. They will get confidence at once, and I say this after having had great
financial experience in every department in Europe and America.

A lot of people ascribe low dividends to the over capitalisation of the mines ? — over • specula-
In my opinion a great deal of over speculation has gone on here. But, of course, in ****"•
soeh a new country as this and in such new industries, this is intelligible. After
1870, when Germany came into possession of a great amount of money, there was an The "Vienn*
enormous period of flotation, ana, at the same time, an enormous amount of over ■°***"
spectdation. Of course, a very big smash followed, known as the " Vienna smash."
But, later on, after the recovery, many of these former flotations which had appeared
bad, became good again, and I thought the recovery which had followed that smash
was the cause of the great prosperity and success of German industry. For among a
etesit number of flotations, there were finally a certain number of good flotations, and
if that period of flotation had not existed we could not have got these good things.

You prefer people would call it over-speculation rather than over-capitalisation ? over-capitoiisa-
— I think in mining companies it is very difficulty to say what is over-capitalisation. *^**°*
Yon see in floating a company you put in the ground at a certain price ; sometimes
yon think you know the value of the ground from the returns of the adjoining claims,

146 Mr. M. Lubeck's Evidence.

but you never really know the value, which is only found after working a certain
time, so you see it is difficult to say anything about over-capitalisation. If the cost of
working does not become cheaper, a certain number of mines will have to shut down,
and the question with these mines is not whether they are over-capitalised or not, but
that the monthly revenue in gold covers, at least, or exceeds the working expenses —
that is the question now.

You say the question of over-capitalisation can only be judged by the results of
the mine? — If you speak of over-capitalisation, you can dlso speak of under-
capitalisation. I know, for instance, a company with a capital of £85,000, and it
spent £100,000 last year for machinery, &c. They put a big premium on their reserve
shares ; and so if you see on the one side over-capitalisatiop, you see here at the same
time a ^ood deal of under-capitalisation as regards the nominal capital.

Take the industry in general, could it be said there is over-capitalisation to any
extent ? — It is very difficult to answer that question ; you have to study every
individual company in order to ascertain that.
Deep level cap- A lot of Companies, especially the deep levels, still require money ? — Yes, they
still require money. I think most of these deep levels are under-capitalised ; they
have issued their shares at very high prices, otnerwise they would have a nominal
capital of millions. Take, for instance, tne Crown Deep ; I think the whole capital is
£400,000, but the value of the mine is such that the snares are in the market at £10,
and the value in the market, therefore, is £4,000,000. The capital being so small is,
in my opinion, the only reason that the shares have been issued at a very high
premium.

Chairman.

Do I understand you that you say there must be a general reduction all round ?
— That is my opinion.
MerchMt^ pri- It wiU uot help much to make a reduction in railway rates and dynamite, because
ti?nofprice"of the working people on the fields are more dependent on the mercantile people — sav,
or*^ii w"»y fo^ instance, a reduction is made in railway rates and the mercantile people retain
»*«• their prices ? — They cannot retain their prices ; competition will bring them down.

There is great competition between commercial people here. I am connected with one
large commercial firm, and I know that very well.
Merchftnte' trade What is the average profit put by merchants on their merchandise generally ? — ^I

**'** ^' think the profit is not very great ; the reason of that is, expenses are so high and

there is really enormous competition.

Do you think the profit would be 100 per cent. ? — No, that is impossible.
Can you give any idea of the average ? — ^The company with which I am con-
nected makes very small profits, sometimes 5 per cent., sometimes 10 per cent., and on
some articles perhaps 20 per cent. Generally the profit is very small, and the
expenses are enormous ; expenses for horses, natives, for rent, &c., are very high. I
know a great number of merchants have not succeeded on account of competition ;
the competition, for instance, in corrugated iron is so great that I do not believe
merchants make any profit on it at all.
Emotion of Do you think a reduction in railway rates will cause an increase instead of a
andSe State decrease in revenue ? — I think so. That has been the case in one country in which
HMgwSm nui- i^^dustry has become splendid — that country is Hungary, where you have very cheap
way nieM. railway rates. You can imagine what they are when a labourer can go from one
boundary of the country to the other for a few shillinga I went from Pesth to a
place named Deva, a distance of at .least from 250 to 300 English miles, first-class^
last train, for about 12s. The Government of that country is held in high esteem fo^

OOtti

oh and

Mr. M. Lubeck's Evidence. 147

having succeeded in creating a very good state of affairs in the country ; everybody
knows that in Europe.

Conditions are different here because expenses are so high, and if you have Railway revenue
largely increased revenue it means largel v increased expenditure ? — Yea, but the tSre. **^'^'
expenses never increase proportionately ; ii the traffic becomes greater the expenses
become proportionately smaller.

Of course, if you get a reduction there never will be a big;ffer traffic than demand ^^i^" ^um
requires ? — Yes, there will be a bigger traffic, because we will begin to work other JSij^^*"^®'
noines.

You want a reduction in all branches of the industry in order to make it possible ReiaUve advan-
to make the mines pay. You acknowledge some mines don't pay, and some mines reSwstion of
pay a dividend of 275 per cent. If a reduction is made on everything in order to to°^[«
make non-paying mines paying mines, my conviction is that there must always poo'minee.
remain a certain number of mines that won't pay, and after all, the reduction would
be made in favour of those mines that already pay big dividends. Do you consider
&at right, and what steps do you propose to level matters ? — You cannot level up
dividends. I think the more profits a mine makes, the better it will be for every-
body. I think if you create such a condition as to make payable all the mines on the
Witwatersrand — and I think it is possible — then you will see development of business
here of which we have no idea at this moment.

Mr de Beer.

Can you give a more explicit reply to that question ? In the first instance rich
mines like the Ferreira, Worcester, Crown Reef, and Robinson, and such like mines
pay large dividends, and if they share equally in the reductions they would benefit to
a great extent by-and-by. Can you suggest something to remedy that state of
affairs? — You see in case you get these reductions the dividends of these rich
eompanies will not increase very much. Take the Ferreira for instance. Say they
make a profit now of 30a per ton, and later on they will make a profit of 36a That
will not increase their dividends very much. If they give 275 per cent, now they
would then give 325 per cent. These reductions would make an enormous difference
to the poorer mines. A mine that can make 6s. profit per ton will afterwards make
128., and in the case of a mine that can pay nothing at this moment it will afterwards
pay 6a That is a big difference to the poor mine ; for the rich mine it does not mean
very much.

That does not answer my question ; it only reminds me of the good old saying,
" That unto him that has much more shall be given." Will not the nch mines under
the altered conditions get enormous dividends ? — No.

If everything is brought down will not the greatest benefit be derived by the
rich mines ? — No, I don't think they will benefit very much. Say we have a poor
mine that employs 1,000 kaffims and 200 white men. In case we shut down that mine
the traffic which is caused by the 200 white men and 1,000 kaffirs will disappear,
besides all the traffic of stores for the minea The State eets a little out of this traffic
in customs and freight, and in other ways, and it woula be a ^eat disadvantage to
the Government to shut down this mine. On the other hand, if you can work more
mines, and if you have more white workmen and more kaffirs, then of course the
ita&c will increase and the Government will get more revenue.

Mr. StwU.

' . ■ ■

What companji^ do you speak about that carries so cheaply. Is it a private Hungarian ran-
company ? — No, it is a State railway, '*'*^ '**^-

148 Mr. L. I. Seymour's Evidence.

Is it over the entire State, or over a certain distance in order to benefit a certain
industry ? — I think most railways belong to the State now.

And they all charge as cheaply as the one you quote ? — Yes ; they are all worked
on the same cheap basis, and I know that State has made enormous progress within
the last few years.

^'evidSoT^'^' Louis Irving Seymour was next called, and he stated :

I am a mechanical engineer, and have been resident in Johannesburg since July,
1896. Before that time I lived in London.

Chairman.

On what points can you give the Commission evidence ? — I can give you some
evidence on railways, the transport of coal, and the equipment of deep level mines.

This evidence you have about coal and freight rates, is it the same as the other
evidence we have got ? — I have given more carefully prepared statistics, and some
suggestions with regard to the transport of coal.

About coal rates and freight we have got a lot of evidence, and if you will hand

in your statistics then you can give your information about deep level mines ?

Bauway rates on Witn€88,] There is a little cvidcncc about the transport of coal I would like to

*'**^ give. I will refer first to American railways. In 1892 all the American railways

Bates on cool on carried 88,241,050,225 tons one mile, for which they received '442 of a penny

^^erioan rail- ^^ ^^^ mile. The lowcst rate was one farthing per ton per mile, and the

highest '866 of a penny per ton per mile. To show how the industry and the

whole of South Africa, not alone in the Transvaal, is handicapped, I will quote

some further figures. We have machinery in America at one half -penny per ton

RaUwayrateaon per mile; in the Cape and Orange Free State it is 2Jd. per ton per mile ; in Natal

Al^eri»7 the it is ovcr 3d. ; in Portuguese territory more than 4d ; in the Netherlands Railway

an^i'^'pr^'eby the Capc it is 7 7-lOths. pence, which is 15 times the rate in America, and

It ^"ese ^y ^^® Rand Tram it is seven times. Elspecially the rate on coal is exceedingly

territor;^ Mid heavy here. The standard rate for conveyance in America, over a mountainous

SmdaBidiway! joumey in specially built trucks, which cannot be used on the return journey, is

^^^coi**in one-third of a penny per ton per mile. The rate from Springs to Geldenhuis Deep

America and is 10*80 timcs that amouut. I think a great saving might De made in the transport of

coal. There could be a saving in bagging by the adoption of scientific trucks, which

Price of coal at wiU save US the total cost of off-loading coals. The average selling price of coal at the

pif 8 mouth, pit's mouth is 8s. per ton, and the average distance covered by rail is about 30 miles

<3oii«imption of ou the Band. The tons consumed by the mines, which were transported by rail for

B^^^d'^'iT- last five months, were 83,080 tons per month. If the railway rate were reduced to

wS^^mte^on ^i^' P®^ ^^ P®^ °^^^^ ^^^ round, including terminal charges, this rate would be stiU

coal. more than five times the rate in America, and the savmg for the last five months

^'^SffSSSSSg wo^ld l>® °^<^re than £18,000 per month in transport. Bagging costs 2s. per ton, and

off'-loading at the Jumpers Deep, for instance, where we have accurate accounts kept,

<Po«ibie total re- costs 2s. |d. per tou. Thcse three items could be reduced in the following amounts —

of"tS^^^Ul8,173 for transport, £7,477 for bagging, £8,308 for off'-loading, making a total of

jMiSutted coBt £33,958 per month, equal to £407,500 per annum. The estimated costs for ecjuipment

of equipment and development on an average for deep level mines having 100 stamps is : — For con-
ment on'^dwp structiou, £231,000; development, £197,000; total money actually required for equip-
100*^ aSS^aoo ™e^ti, without paying for claims at all, is £428,000; so the average cost per stamp
rtamperespec. erected is £4,280. For a mill having 200 stamps, construction will cost £315,000 ; de-
^ ^' velopment, £236,000 ; total, £551,000 ; so that the average cost per stamp is £2,755.

These amounts are found principally from actual costs, only the items yet remaininfr

Mr. L. I. Seymour's Evidence. 149

to be constructed being estimated on. One reason for the high cost of the construction Expenae of oy
work is the large outlay necessary for cyanide and slimes plant, and the necessity of riSnes^pknt **
laying down such plant as will save as much labour as possibla Now with regard to
the points on which any saving can be made in deep level construction. We have on
«ne xnine the sum of £93,788 spent for construction alone ; £61,587 for material, or Percentages of
65| j)er cent, and £27,799, or 29§ per cent, for labour, and general expenses were Ix^^*^^^
£4,400, or 4*69 per cent I do not think that this percentage for labour is too high, Percentage of
38 I find in large manufactory works in England that the average cost for labour was ^*to*2a^^Si
31.7 per cent on the average of the total cost of machinery manufactured. I have inEngitahm*.
taken one mine, the Jumpers Deep, for instance, at which data are very carefully kept S^^S^**""
Up to December Slst, 1896, we have spent for construction, £101,000 ; for development, ®*J^i^onjtS".
£111,000 ; total cost £212,653. The wages during that time amounted to £41,710 for pe^„2S?°^of
white labour, and £14,128 for kaffir labour, or £55,838, which comes out 26^ per cent. cOTt"o?1aboar
of our total expenditure. The items on which we hope to save are, for material, about JS **^ jinSpS
75 per cent, and for labour, 25 per cent. So our chance for saving on machinery is E^Sct^^ion-
three times as nmch as on labour. In developing the deep level mines our total pay omies on
for a white man is on an average 19s. 6 6-lOa. per day. That is higher than is usual SSJS?* *"**
with mines which are stamping, since they have lower paid men than we have, during ^ TiS^f *of ^ite
the development and construction stage, as nearly all underground men are first-class "'»«' on de-
miners, and for construction a large number of high-priced mechanics are employed, kvef mSies^
I have developing wages here for a few gold fields, of which I have got accurate inf or- ^*"***
mation. These are new fields in the same sense as the Johannesburg fields are.
Transport is so easily obtained all over the world that we are in competition with these Avenge devei-
fields to i3ome extent for labour. We have on the Crown Reef 18a 6d. paid per shift ; sfiS'X^SSte
on the Jumpers Deep 19s 4d. ; in Montana, in the northern part of America, we have Q^own ' lu^
14& 4d. ; in Nevada, one of the Western States, we have 17s. 3d. ; in British Columbia and Jumpen
30& 6d. So I do not think our wages are greatly in excess of those paid in other Efd^in "mot*
parts of the world. In my special department here I have a number of draughtsmen ^j^ ^SS^

making plans, the four principal men receive £27 10s. per month. The four principal coiumwa.

men in engineering works in England, with which I was connected, receive £21 2s. 6d. liy wSeof^Tour

Eer month, so our wages are about 29 per cent, higher here. In England the cost of SraughtJmen

ving, bedroom, etc., is £8 12s. per month ; here it is £11 a month for less accommoda- l^^^^ ^J:

tiooL* The extra cost of living nere is 28 per cent, and the wages are 29 per cent land.

more. Such items as cab fare, railway ticKets, going to the theatre, and other expenses ?n the lu^

which men have to incur, are very much greater here, and I do not think that those »n<**nKnyUnd
wages can be reduced at all without sacrificing efBciency. I come now to the cost of CoimMriMo of

machinery on board the steamer in England, America, or the Continent, and the cost S^^un^^de^

of erecting it in working order on the mines. I have only got a few items here, and lii^'ghip»2d

the average cost of all those items is £13,928 ; the cost of erecting on foundations, when emsted

without any buildings over them, is £34,079, so that machinery costs, erected at our °° "" *"'
mines, two and a-ha& times more than its original value. From the Chamber of Mines'
reports, it would appear that 5,135 stamps have been erected, and during the year

1896, 3,740 of these were running at some period or other. If we estimate the amount Touiooetof oon-

of money which has been spent on stamps, and what we find it costs us at present, and development

which I think is cheaper thein the early mines were working upon, it would amount to fnciSSSg mS^

about X22^00,000 sterling spent upon construction and development of mines, not ^j^^ ^'
inclading the payment for claima Then that amount will be about £12,000,000 for
eonfitroction and £10,000,000 for development I have here a table which I need
not give at present; it contains the numli^r of men employed on the mines per stamp.

Mr. de Beer.
What do yon mean by 30 per cent for sorting? — ^I mean, taking the case of the sorttog.

150 MR, L. L Seymour's Evidence.

J p.

Saving on Per- Ferrcira, that for each 100 tons of mining done, 30 tona waste rock is sorted out — that

reira mine . i ji ■ t t t • 'i

through sort- IS, rock that has no gold in it.

***• What do you reckon is saved by that? — Mr. Johns has made a statement by

which he shows that the saving is £200,000 per annum.
Sorting at the Is it a general principle adopted on all the mines ? — It is being adopted. I may
Deep* "and say that at the Geldenhuis Deep we have commenced sorting, and for 7| per cent.
Crown Reef, ajfowed for this we have an increased value of the yield of 7lOths. dwt. It does not
pay to crush the rock that has no gold in it. At the Crown Reef also we have had
better results. We began sorting last month also.
Jntrog^tJon of Is it a new method? — No, it is not.
^ It has only just lately been applied ? — ^It has been applied for more than three or

four years by some companies.

It is now commencing to get general ? — Yes.

The Ferreira mine carry this on with an average profit of £200,000 per annum ? —

No ; an average saving.

Economy of sort- Now, whcu sortiug gcts iuto general use, will it not revolutionize mining ? — Many

^' companies have too many stamps erected, and the manager likes to see all the stamps

working. This sorting would prevent this, in other words, the rock containing the

gold can be crushed with fewer stamps than when crushing the waste as well.

Then there is proof when the Ferreira can save over £200,000 a year, others can
also save money ? — You can. save money by sorting rock, but where the leader and the
Main Reef come together you cannot sort at all.

Are there many mines where it happens that the Main Reef and the leader come
together ? — ^A great many. At the Geldenhuis Deep we have the Main Reef, which is
not very rich, while the Main Reef leader is very rich. If we sort out the intervening
waste rock we can crush more of the Main Reef, but the Main Reef being much
poorer, we do not get a corresponding advantage. It means crushing rock which will
return perhaps 6 dwts., where the leader may run 2 or 3 ounces, so that the total gain
in sorting is not in proportion to the total amount crushed.

The mines to the west of Johannesburg have not the Main Reef and leader close
together ? — But they have a thin reef, which in order to crush, you must take out a
large percentage of rock.

And this makes sorting necessary ? — Entirely so, many mines could not be worked
at a profit without sorting.

Mr. Smit

coetofuvingfor How would you describe the cost of living on the mines? — Well, a draughtsman

man***S»"^tt^ in the States would pay for board, two rooms, and washing, £5 ISs. a month ; and ia

wS*at Joha^- Johannesburg some of my draughtsmen, who occupy similar positions, pay from £11

nesbui^. to £12 and Imve only one room,
salaries of mine How do the Salaries of officials run ? — They are less in Johannesburg than in

ha^Bbure! Australia, and slightly higher than in the Western States of America.

Augtraiia. and What do you mean by mine officials ? — The manager, engineer, mill manager, and

stotes. of the Cyanide men.

United stetea. ^ j thcsc are paid more in Australia than here ? — Yes. I may state that I was.

managing director of a large manufacturing firm of mine machinery in London, which
also did business in America. We were constantly asked by mining compaines in
Australia, the Straits of Borneo, and South America, to send out managers> mill
managers, and other skilled workers, and the average rates in Australia were much
higher than here. We have had to pav as much as £3,000 per annum for a first-class
underground foreman. The demana during the past two years has been very great

Mr. L. I. Seymour's Evidence. 161

for managers, and this class for Australia, British Columbia, South America, Siam,
and the Straits of Borneo.

How does the salary to miners here compare with those paid in Australia and ^{lf^?(,jS|£
America ? — The salary to miners is about the same as in Australia, less than in British Ameiioft, uk
Columbia, and slightly more than in the Western States of America. I have given a **° **** *•"*•
table about that. It is to say that these are new fields, which are in competition
with ua

Have you compared the salary of the miner in America with the salary of the ^J^^J/u*^
miner here, and the expenses of living there with the expenses of living here ? — Tes. of minen b
The expense of living would be 25 or 30 per cent, less than here. onSeEwiSL*^

On the salary he earns in America, how much per cent. ? — The salary, in some DUferenoe be
cases, would be slightly less — say as 17a 3d. is to 20a — that is 12 per cent. SSerTon^d

Tou calculate the cost of mining per stamp ? — Yea The total construction and iMrtsof Amer
development is £4,280 per stamp for a 100-stamp mill, and for a 200-stamp mill it is oomparativi
£2,750 per stamp. That is to say you must have the same oflBices and the same shaft, ^ire^Sito. ^
and nearly the same ^neral construction on the surface for the 100-stamp mill as for
the 200-stamp mill. The larger mills are cheaper.

•
Mr. de Beer.

Can you explain why the Qeldenhuis Estate Company is marked on this diagram ^•^^•^^r?^ %
as being far nearer the danger-line than the Geldenhuis Deep ? — I think the value of Estate aJa^t
the rock varies in diagonal chutes, and in certain parts of the Qeldenhuis Deep, Deep*^«L*'
especially the upper part, it is much poorer than the lower levels. At present the
Qeldenhuis Estate is now working rock of less value than they did on some oi the upper
levels, so that certain levels are poor, and at another level you mav find much better
rock, and it is quite possible that oelow that you may find poor rock.

Can you tell us the average return per ton of the Qeldenhuis Estate ? — ^The
recovery is given on the plan. I could not tell you exactly.

I know that the deep level is 6^ dwts ?— It is a little more just now. '^'iS^rdSi^ w^i

I know that, but what is the average ? — In February the recovery was 7.42 ^"^uta See?.
dwta, and the yield for the month of April was still more, but we are working now in
better levels and the rock is slightly better.

You do not know the yield of the outcrop company ? — I have a complete table,
but unfortunately I have not got it by me.

The Chairman then thanked Mr. Seymour for the information supplied, and
asked him to hand in the statistics about the yield.

Tlie following Statistica and Diagrams were handed in by witness in the course
of his examination : —

152

Mr. L. I. Seymour's Evidence.

OCEAN FREIGHTS.
(AU per Ton of S^^ Pownds.)

Union, Clan Line, and American and African Steamship Line.

(From New York to South Africa direct. J

Freight Rates on Machinery.

But London

and
Port NktaL

40/-
46/-

50/-
55/-
60/-
65/-
70/-
75/-
80/-
85/-
90/-
96/-
100/-
105/-

Note. — Ten per cent, primage is charged on all the abdve rates, returnable in the
form of rebate. The latter is claimed on the 31st January and Slst July of each
year, and is payable six months thereafter.

OftpeTown

mitUX

Algoa Bay.

Not exceeding 2 tons

in weight

32/6

37/6

» • • • • •

42/6

47/6

52/6

■

57/6

>«

62/6

» •

67/6

■ 72/6

«>

>»

77/6

82/6

87/6

• • • • •

92/6

• • •

• • • • •

97/6

SAILING VESSELS— London to East London, &c.

East London. AlgoaBay.

1. Mining Machinery and Cement (iron drums), up to 3 tons 18/9 17/3

2. Boilers, &a, 3 tons to 9 tons 23/- 22/3

All per ton weight or measurement (ship's option). Freight net. No primage.

STEAMER FREIGHTS.
(AU up to 3 tons weight.)

From London, Liverpool, or Glasgow to : —

Destination.

East London
East London
East London
Algoa Bay
Algoa Bay
Algoa Bay

••

Name of Line.

Bucknall and Clan

Castle and Union (intermediate)
Castle and Union (mail)

Bucknall and Clan

Castle and Union (intermediate)
Castle and Union (mail)

51/3

38/9

32/6

52/6

40/-

32/6

55/-

41/3

32/6

42/6

31/3

25/-

45/-

32/6

25/-

47/6

33/9

25/-

rv.
30/
30/-
30/.
22/6
22/6
22/6

Class L

IIL

>»

IV.

Mr. L. L Seymour's Evidence. 153

Machinery, Boilers, &a
Trucks, riping, &c
Bails, Soap, Earthen Pipes, &a
,.. ... Bar Iron and Steel, Cement

On pacS^ages over Three Tons weight, 5/6 additional on every Ton or Half-Ton
up to Five Tona

From Five to Twelve Tons, 5/6 per ton additional. No charge for heavy lifts
or heavy measurement.

SEA FREIGHT.

From New York to London ... ... ... 12/6 per longj ton.

From Chicago to London on heavy boilers, via Kanawha Despatch (Bailway,
1,000 miles ; sea distance, about 3,300 miles), 50 cents, per 100 lbs., equals 40/6 per
ton of 2,240 lbs. — (Weight or Measurement Twt at ship's option.)

SEA FREIGHT.

From New York to San Francisco, via Galveston by sea, thence by rail on
South Pacific Road to San Francisco : —

In Summer ... l/5id. per 100 lbs. ; per ton, 2,240 lbs., £1 12s. 2d.
„ Winter ... ... ... „ „ £2 6s. Od.

RAILWAY RATES.

For comparison of Indian and other Railway Rates per mile. Engineering,
Vol. 42, p. 214, say-s.: —

Chaboes Per Ton Peb Mile in Pence.

CUm of Qocxb. India. England. Belgium. Holland. Germany.

Grain 085 1*54 079 096 113

Cotton 1-53 2-77 174 1*61 1*61

€otton Goods 1-28 264 222 161 206

Sugar 0-85 112 160 0*96 132

Average ... 113 202 159 128 155

ENGLISH RAILWAY RATES IN 1893.
From Engineering (Vol., 65, p. 48 Jan., 1893.)

New Maxima per Ton per Mile.

XameofEaUwa,. perT^i^MUe. Fi«t20Mile., NextSOMUee. Next 50 Mile ^^^^^

Great Eastern 2d. 180 150 120 070

Great Northern 2id. 180 150 120 0*70

Great Western 2\A. 180 150 120 070

Loudon and North WesteiTi ... 2|d. 1*80 150 120 0*70

London, Chatham, and Dover ... 3d. 180 150 1-20 0*70

North Eastern 2d. 2*0 1*75 150 125

South Eastern 2d. to 3d. 180 150 1*20 075

TaffVale „ '. 2Jd. 180 150 120 0 70

Xancashir^ and Yorkshire .. 2d. 1*80 1*50 1*20 0*70

154

Mr. L. I. S^mour*8 Evidence.

THE COST

' PER TON PER MTT,K IN GERMANY HAS BEEN :—

Tear.

OoitinPenoe
per Ton per Mile»

1868

... ... ... *•• *• ..1

1-063

1878

... ••• ... ..1

1 • • <

0-911

1880

... ... »•• ..<

• .\»i

0-852

1882

0.815

1884

... ... ... ..4

0-792

1886

... ... •*. a.)

0-788

1888

... ... •*• ..<

0-763

1890

... ... ... ..<

0-749

Ordinary recent rates for machinery over various roads in America per ton of
2,000 lbs.

ToUl Distance Rate per ton
oliaive. (MUes). (per MUe).

Chicago to Atlanta, Georgia ... 47/7 1,500 0.3807 A
Syracuse, New York ... 18/lOi 670 0.3381d

Denver, Colorado

New York, New York...

San Francisco, Cal.

94/5

24/7i

90/3

1,041

960

2.416

1.088d.

0.3078d.

0.4485d.

On the following named materials the rate from Chicago to New York in I89Z,
and which practically governed all railway rates in the Eastern States, was per ton of
2,000 lbs. in car-load lots : —

(Distance : 960 miles average).

Cotton

Goods. Stores. Ooffee. Starch. Sugar. Soap. Machinery.

Material Rate in pence per ton per mile 0513 0*257 0257 0257 0257 0.2668 0.308

For American Railways the total actual cost of carriage to the Railwaya
themselves was as under : —

RaUwigr. 1887.

Main Line Branches ... 0*3298

United Railroads of New Jersey 0*6303

Philadelphia and Erie Railroad. . . 0*2659

Lines East of Pittsburg and Erie 0*3595

Pence per ton per mile
1888.

0*3103
0*6007
0*2511
0*3398

0*3053
0*5761
0*2709
0*3348

1890.

0-2955
0566a
0^2511
0*3201

Tnxnsportofand ^^ ^892 all the American Railways combined carried 88,241,050,225 tons one
~^J°j;2J^° mile, for which they received $799,316,042, or at an average rate of 0*898 cents;
ways in 1898. cquals 0*4422d. per ton per mile.

The lowest charge was on the Chesapeake and Ohio Railway, which was 0*2561d.
per ton per mile. The highest was the New York, New Haven, and Hartford, which
sent most of its heavy freight by steamer. Its railway rate was 0*866 per ton
per mile.
Dividends H>f During this year the average rate of dividend paid by all the railway companies
w^?i8fl3?' combined was 2*11%, and this amount was paid by 40% of all the lines. During the
same time, 15% of dl lines paid no interest on their deoenturea

Mr. Lt L Seymour's Evidence.

155

Comparing the various average rates above cited, we have

German (latest quoted)
English (average) ...
American do.

• • •

Machinery, American

do. Cape

do. Orange Free State ...

do. Natal ...

do. Portuguese

do. Netherlands-Cape ...

do. do. Natal ...

do. do. Delagoa

Actual cost coal, Rand Tram

0*749d. per ton per mile, State Bailwaya
l"125d. do. Private do.

0'4422d. do. da do.

0.5126d. per ton per mile, I'OOO per cent

2-34d.

2.34d.

304d.

407d.

7-69d.

506d.

4-27d.

3-58d.

do.

4-565

do.

4-565

do.

5-931

do.

7.940

do.

15-000

do.

9-871

do.

8-330

do.

6-982

Engrlish, Ger-
man, and
▲nierioan mil-
way rates.

Railway rates on
maohineiy on
Amerioau.Por-
tug^ese, Oape,
Orange Free
State and Na*
tal railways.

The standard rate for ccmveyance of coal from Pennsylvania to New York over
mountainous roads in specially built trucks for coal, which canjiot be used on the
return journey, is 0.3305d. per ton per mile.

The actual cost of coal from Springs Station to the Geldenhuis and Jumpers
Deeps, in bulk, is 3'58 per ton per mile, or 10.83 times the rate in Eastern Umted
States of America.

standard rail-
way rate for
coal in Eastern
States of
United Stotes
of America.

Bi^WMT rate on
coal from
Springs to Gel-
denhuis Deep
and Jumpers
Deep.

TRANSPORT AND HANDLING OF COAL.

The average selling price of coal at the pit's mouth in the Brakpan district is,
roughly speaking, 8s. per ton, and the average distance hauled by rail, to the various
mines, about 30 milea

The average tons consumed by the mines, which was transported by rail for the
last five months, was 83,080 tons per month.

I estimate the average value per ton delivered at the gold mines as 18& per ton,
say £74,772 per month.

Were the rate by rail reduced to Ifd. per ton per mile, which is still 5*295 times
the rate in Eastern United States, an economy in transport of 83,080 tons x 30 x
Ifd., equals £18,173 Is. 6d. per month, would result

Bagging costs on an average 2a per ton of coal, or, allowing 90% of all coal
delivered to the mines in bags, bagging costs £7,477 4a per month.

Off-loading at the Jumpers Deep, Limited, at which mine accurate costs have
been kept, is as under : —

960
... £15 0 0
82 IQ 0

Piioe of coal at
thepifsmouth

Averaffedistanoe
whiob ooal it
tiansported.

Average con-
sumption by
mines of ooal
tiansported by
raiL

Average month-
ly value of coal
deliverod at
mines.

Boonomy result-
ing from re-
duction of rail-
way rate on
coal to lid. per
ton per mile.

Oostof bagging.

Cost of off-load-
ing at Jumpen
Deep.

Average monthly tons consumed
Average cost off-loading (white labour) ...
do. do. (black labour) ...

Total cost per month off-loading coal ... £97 10 0

Average cost for off-loading ooal per ton 2a 0'375d.

156

Mr. L. L Seymour's Evidence.

Monthly wwM- Were side-tipping railway wagons adopted, as used in America, and which would
aue in off- suit existing sidings and bunkers, the saving in off-loading coal would be 2s. per ton,.
minJSluS: or £8,308 per month.

Potaibie total Summed up, the total saving per month to the industry is as under, viz*: —
JSS^tod^ Railway transport ... ... ... £18,173 1 6

S2n5™ Bagging ... ... ... ... 7,477 4 0

868 Kg»r&ng Off-loading ... ... ... ... 8,308 0 0

or £407,500 per annum.

£33,958 5 6

MACHINERY SHIPMENTS TO JOHANNESBURG— ACTUAL COST.

Co0t per Ton of 2,000 lbs.

F.O.B. London or Steamer...

Ocean freight (intermediate class) to

Port Elizabeth
Landing

Wharfage 3/8% on home cost
Clearing and forwarding ...
Railage to Viljoen's Drift (3rd class)...
Vilioen's Drift transport to Johannes-

burg, including^rtage
Transvaal duty, equals lj% on home

cost, plus 20%

Cost Delivery at Johannesburg
Difference between home cost and

cost delivered J ohannesburg
If Carriage was l*13d. per ton per
mile, as was chargea in India in
1886 on grain, sugar, cotton, and
cotton goods, the railage would
nave ueen ... ... ...

Leaving cost at Johannesburg

Or difference between home cost and

cost here per ton
Saving per ton over present cost

An avenge lot

Mining Mwhlneiy.

£■.<!.

31 5 0

2 0
0 4
0 2
0 3
5 10

2
3
4
9
0

Percentage
Total Coet.

75.64

4-86
0-51
0-28
0-45
13-32

Outl^orUr pejcentage-

Oored it Planed, »ir.«^?ri,«-*
Ooliimn8,Olrdew,&c. ^^ ^^'

£ s. d.

29-75

4 1 10

2 0
0 4
0 0
0 3
5 10

2
3
3
9
0

1 13 4
0 7 6

4-04
0-90

1 13 4
0 16

£41 6 4

100-00 £13 15 1

10 1 4

9 13 3

3 7
37 10

6 5
£3 16

3
3

3
1

3 7 3

9 19 0

5 17 2

9-27% £3 16 1

14-60-
1-5&
0-09
1-36

39-98

1212
0-55.

lOO-OO

27-665^
Out of a total expenditure of £93,788 9& lOd. for construction work at a Deep

PercsentaKes ot

owto of ft^^ Level Mine, the proportionate amounts are : —

level oiliic.

Material
Labour
General expenses

£61,587 19 3

27,799 16 1

4,400 14 6

£93,788 9 10

Percentage,

65-67

29-64

4-69

100-00

Mr. L. I. Seymour's Evidence. 157

The percentage of total cost paid for labour, viz : — 29*64, is a close approximatioir
to the average cost of labour at a large machinery manufactory works m England,
equipped with the most modem labour-saving appliances, at which factory the total
labour was 81*7 per cent, of the total cost of the manufactured goods.

PROPORTION OF EXPENDITURE IN DEEP LEVEL COMPANIES.

JuBiPERS Deep, Limited.

From Commencement to December Slst, 1896.

Peroentafre*

Construction cost •.. ... £101,047 2 3 47*52 ^^*XLi'

Development cost ... ... 111,606 15 7 52*48 enDetpfron

its commence

Total cost (including all expenses except payment for claims) £212,653 17s. lOd. m«nt to sii

1880.

During that time the total wages paid was : —

Whites, 43,032 shifts at 19a 6-62d. £41,710 9 2 1962%

Natives, 112,385 shifts at 2a 617d. 14,128 1 0 664

Total wages ... ... £55,838 10 2 26'26 z^^i^

[No cost of native food included in native wages].

The development of a Deep Level Mine requires a heavy outlay for timber* cost of develop
dynamite, and coal, and during the development and construction stages, the average utreimj^t^
rate per man per shift is higher than would obtain in the same mine when stamping,
as was stated Dy Mr. Sidney Jennings, whose figures are, for all white men, 18s. 6'4d.
per man per shift.

In the mines of Montana, tbe standard rate of pay is $3*50 per day for all under- waeree in thi

J iiiiiirkji *•' *«f minM of MQin

ground men ; equals 14s. 4'3d. tana, U.8.A.

In the Comstock mines of Nevada, it is $4*00 per day ; equals 17s. 3d. WMree in tiu

In the British Columbia mines, the standard rate of wages is $5*00 per day ; min«». Ne^

equals 20s. 6id. per shift. ^Xe. S Brit

iah Columbia.

Tabulated, the rate per shift is :

I. d.

Crown Beef .. ... 18 6*4 average. TaXAe of wagei

Jumpers Deep ... ... 19 4*62 „ r e e f ^JI^

Montana ... ... 14 4*3 standard. SSSTl^STS

Nevada ... ... 17 3 „ JSSfMdMt

British Columbia ... ... 20 6^ „ iahcoiumbia.

All above are new goldfields with which we are in competition. From consider" Lowiew of mj-
able experience in finding men for various responsible positions at mines for the Cape> Sand, ^
Australia, the Straits, and South America, I think, generally, the salaries paid on the
Rand are somewhat lower than are paid in the other districts mentioned above.

In my own department of mechanical engineering the rate of wages paid at present wages of four
to the four principal draughtsmen is £27 10s. per month, while that paid to the first S/au'ghtmien
four similar men at Messra Frajser and Chalmers' Engineering Works, near London, buig'^^aSS^In
was £21 2s. 6d. per month, for similar work, so that the same man in Johannesburg KDKia«L

158

Mr. L. I. Seymour's Evidence.

receives 29-44 per cent more wages than at London, while the cost of living
greater here than there, per montn, as follows :

^SSt^^Mhtol Erith, England — Cost of bedroom, sitting room, fires, washing,
^ JohMinoi. beer, gas, etc.

Enj^buid, an<i Scranton, North America — Bed and sitting room, with bath and
scranton. N. lavatory, fires, gas, washing, etc.

America.

Johannesburg — Bedroom, fire, candles, and washing

£ I.

8 12

5 19
11 0

0
0

The above rates are ^ven as the actual costs of living for a draughtsman
All other items, such as clothes, cab fares, railway tickets, and pleasures, whic
make up the sum total of living expenses, are about double in Johannesburg
similar things cost in England or America.

cierto- wwea ^ cousider the rate of pay for this class of men cannot be reduced wi

notadviaabteT great SB^^rificc in the quality of talent.

Reduction
clerks'

^achuJry RELATIVE COST OF MACHINERY f.o.b. ENGLAND, CONTINEJ

f.o.b. in Eng-
land, on the
Continent, or
in America and
on WitT^'aters-
rand mines.

AMERICA, AND ERECTED ON THE MINES:

Smgle drum hoisting engine
Double drum hoisting engine
Double drum hoisting: engine
Cornish pumping plant
35-drill compressor, complete
8 boilers, 125 h.p. each
8Jft X 135ft. chimney, complete

Home Cost

Percenta^^

Ck)et Erected.

... 1,550

3,218 11

... 1,612

42i

3,802 14

... 2,160

47i

4,582 1

... 1,628

4,625 17

... 4,000

54f

7,312 0 1

... 2,736

31i

8,738 9

)te 342

1,799 17

£18,928

£34,079 11

Generally speaking, the principal machinery at any mine will be foun(
erected, two-and-a-half times its home cost

Total number of
stamps erected
and running
on Witwaters-
rand gold
fields in 1896.

Estimated total
cost of equip-
ment ana de-
velopment of
Witwatersrand
gold fields.

Construction
costs <rf mines
of Witwaters-
rand gold fields
and excess cost
through high
railway rates .

STAMPS ERECTED.

From the Chamber of Mines reports, the total number of stamps erected
fields to the end of 1896 is 5135, of which 3,740, or 728 per cent., have been
some portion of the time in the past year.

If we estimate the amount of money that has been spent in equipp
developing for 5,135 stamps, the same as above noted for a 100-stamp mill, %.e
per stamp, we have about 22 millions sterling spent to equip and develop the
mines on these fields, aside from the money spent for claims. I believe not 1
£5,000 per stamp has actually been spent.

Of this 22 millions sterling about 56 per cent, (or say, twelve millions
will have been spent on construction, of which amount I should say one
sterling might have been saved if the railway rates had been such as would h
returned a good rate of interest to its shareholdera

'.1INES OF TilE WITV/ATERSRAND.

FEB.

har aph. may June jutr Mb. sip. Oct itotr oi

Mr. L. L Seymour's Evidence. in

TABLE OF DISTRIBUTION OF LABOUR AT THE DIFFERENT DEEP

LEVEL MINES.

-».». ^ n— — . OoHtruction. Development. ToUl at Pneent. ErtimMad Ha when StampinB.

name of company. Whltee. Blacks. WUtc& Black*. Whites. Blacks. Whites. Blacks.

Olen Deep. 100 stamps 40 53 75 247 115 300
Langlaagte Deep, 200

stamps ... 16 23 152 679 168 702 300 2,000

<Jrown Deep, 200

stamps ... 39 60 168 890 207 950 400 2,500 to 3,000

NooTse Deep, 100

stamps ... 37 137 111 560 148 697 140 1,200

Jompers Deep, 200

stamps ... 42 160 138 740 180 900 150 2,000

Itoee Deep, 200 stamps 75 310 145 565 220 875 260 1,500

Average ... 415 12383 1315 6135 173 737-3 250 1,840

AotuAlNo. Estimated No. AvenffeNo.
bef OK Milling, after Milling. per Stamp.

Average number whites employed for lOO-stamp plant 132 140 1'4

200-8tamp „ 194 280 14

natives „ lOO-stamp „ 498 1,200 12*0

200-stamp „ 857 2,060 103

Whites employed at Bobinson mine (120 stamps) 280 2*33

JJatives „ „ „ „ 2,369 1974

Whites employed at Geldenhuis Deep (155 stamps) 272 1*75

Natives „ „ „ „ 1,316 849

Whites employed at Crown Reef (120 stamps) 246 2*05

Natives „ „ „ „ 1,749 1460

Average number of white men when stamping, per stamp erected 1*79
„ „ natives „ „ „ 1303

172 Mr. R. Barrow's Evidence.

**denee^^'*^' ^^* RoBERT Baerow was the next witnesB called. He made the folio

statement : —

I am a miner from the North Lancashire District of England, and have
working underground for 26 yeara At present I am mine foreman at the Jun
Deep, Limited, and have been in South Africa since the latter end of 1887.
arrival I worked for six months in Kimberley in the De Beers Mines ; since th
have worked in the Transvaal. I have a wife and four children. When I can
South Africa I left my wife and family living in Dalton-in-Fumess, Lancaf
where they remained five years, when they came out here, and have been living
with me about four years. I have read the evidence submitted to this Comm«
and, generally, agree with it, especially with the evidence given by Mr. Fitzpai
I therefore intend to confine my statement to a simple analysis, and a comparisc
cost of living in England with my family and the cost of living here, and
diflBculties of coming out to this country.

The cost of living and the wage earned by a miner in Lancashire, England,
be dealt with in order that a comparison of facts and figures leading up to the ]
under notice, viz., cost of living in the Transvaal, may be arrived at.
^in EngiaiS*" A miner receives 5s. per day of eight hours, the month being composed o

working days. This totals up to £5 10s. per month.

The 22 working days are as follows, viz. : —

Dajrs.

First week — Monday, 6 a.m. till 2 p.m., and so on till Saturday,

X, ^ l/.Ul. ••• ••• ••• ••• ••• ... \J.

Second week — Monday, 2 p.m. till ] 0 p.m., and so on till Friday

night, 10 p.m. ... ... ... ... ... 5

(Saturday being a half-holiday, he does not go down to work at 2 p.m., then
no work is done from Friday night at 10 p.m. till Monday at 6 a.m.)

Days.
Third week — Monday, 6 a.m. till 2 p.m., and so on till Satur-
day, 12 p.m. ... ... ... ... ... 6

Fourth week — Monday, 2 p.m. till 10 p.m., and so on till

Friday night, 10 p.m. ... ... ... .. 5

The balance of a month of 30 days being made up as follows : —

Sundays, non- working days, 4 ; two Saturdays, non-working,

2 ; Saturday, 12 p.m. — Monday, 2 p.m., no work, 2 ... 8

Total days ... ... 30

^SSm 'toEnS' "^^ ordinary miner's cottage of six rooms costs 3s. 6d. per week, or 16s.

land." month, in England, leaving a balance of £4 14s. per month for food, clothing, &c.

In the Transvaal the same cottage would cost £8 per month, i.e., £7 4s. more
ooit of. food to The food consists principally of porridge, bread, butter, meat, vegetables,

; I ^*°^- coffee, milk, and egga

Mr. R. Barrow's Evidence.

17a

The following is a table of the approximate cost of these articles in England : —

Table I.

Butter, lOd. to Is. per lb.

Flour, Is. 8d. per st. (14 lbs.)

Bacon, 4d. per lb.

Tea, Is, per lb.

Coffee, Is. per lb.

E^gs, 9d. per doz.

Milk, Id. per pint.

Potatoes, 3d. per 14 Iba (stone).

Meat, 8d. per lb.

Oatmeal, about l^d. per lb.

Clothing. — This in England is, at the very least, 43 per cent, cheaper than in the
Transvaal. For example, a suit of clothes costing 20s. in England would, for the
same quality and material, cost 35s. in the Transvaal.

A pair of ready-made miner's boots, costing 8s. 6d. in Eng^land, would, for the
same quality, cost 17s. 6d. here.

A detailed estimate of the cost of living per week, for a miner's family of five, in Betimftte or
Jfingland is given : —

Table II.

Milk, 1 pint per day at Id. per pint

Butter, 2 lbs. per week at lOd. per lb.

Meat, 9 lbs. per week (three times per week) at 8d.

Vegetables, per week

Br^ (a 4 lb. loaf and a half per day), at 6d. per loaf

Groceries (tea, sugar, soap, coal, etc.)

weekly oort of
livinff of min^
er'e nunily in
England.

0
0

0
1

7
8

per

week.

>•

Bent per month ...

Doctor s fees for whole family
Schooling (free) .. .

leaving balance for clothing of

£1 1

Per month

• • • • . •

• • • • • •

... £4 6
... 0 16
... 0 1
... 0 0

0
0
0
0

• . • • • •

£5 3
... 0 7

0
0

£5 10 0

Further, a miner generally belongs to one of the numerous benefit societies in EngUih benefit
England, by which for the payment of 2s. per month he is entitled to receive 12s. per ■<»®*«***^
^eek in case of sickness. In case of his death his wife receives from the society £14
^own, and in case of his wife's death the husband receivea £7 down. Numerous
privileges are also enjoyed by a miner, for which he pays nothing, such as free reading
rooms and free recreation grounds. The above expenditure per month enables a miner
*Qd his family to live in greater comfort and enjoyment than it is possible to do here
^£1 per day. Leaving the cost of living in England for the moment, the expenses voyage expense*
Wnnected with a voyage to the Cape will now be noted, A third-class passage to the ^ "*»«*

174

Mr. R. Barrow's Evidence.

Cape from any part of England costs sixteen goineae. Add to this railway fare, ti
class, from the Cape to Johannesburg (which is £4 8a 9d.), the expenditure for
voyage amounts to £21 4a 9d This does not include cost of food during the ti
days occupied in the journey by train, which would bring the amount up to :
Fmther, the minority of miners arriving here have to allow for about a montl
being out of employment, necessitating a further expenditure of £8 (or more)
living during this time. Taking into consideration all these items, amountiQ{
£30, and referring to Table II., by whcih it will be seen that he haa only 7a per hk
left over from the actual cost of living for himself and family, for clothing, etc., i
not di£Glcult to judge of the length of time it would be necessary for him to savi
sufficient money to brin^ him out to Johannesburg, and what sacrifices he and
family would have to undergo in order to enable him to do so. As a matter of hi
is impossible for him to collect enough out of his earnings for this purpose, and he
to borrow the amount from his unmarried frienda Bearing the above in mind, :
only natural to suppose that he undergoes these sacrifices in the hopes of obtaii
sufficient pay, once arrived here, and at work, to make up for these.

Av«w dMiy AVERAGE RATE OF WAGES FOR MINERS ON THE RAND.

wife of white

m|b«r on the 75 p^^ c^^t. rock-drill men at 20s. per day.

25 per cent, bossing boys in stopes at 12a to 15a per day, giving an ave
of £23 16a 8d. per month of 26 daya
Monthly oost of With this amount per month a married man with a family, say of five altogd
S^if'li^j]^' has to pay the following. The undemoted different amounts are the actual aver
for mine familiea

the Band.

Table III

Rent ...

Butcher's account

Baker's account

Milk (1 bottle per day)

Groceries

Fuel ...

£ a d.

6 10 0 per month,

2 10 0

2 0 0

0 15 0

8 0 0
110

Total

...£20 6 0

This amount is merely for absolute necessaries to sustain life and to give a sh<
for the head, placed at the lowest estimate. It will be noticed that the amount
not take into account the following absolute necessaries also : —

Clothing
Schooling
Doctor's fees
Kitchen boy
Railway fares

Table IV.

£ s. d.

4 0 0

per

month.

1 10 0

0 7 6

3 0 0

12 6

£10 0 0

(not including books).

(for children to school).

Making the total £30 6a per month for mere natural and compulsory w
leaving out all consideration of such small items as reading matter, school Ix

Mr. R. Barrow'8 Evidence.

176

lereation, and small comforts indispensable for comfort and enjoyment. It will be
Mm that in Table III.*, groceries exceed in cost all other items, taking them one by one,
id it would be as well to give here a table showing how this amount is made up.

Table V.

Butter, 2 lbs. per week, at 2s. 6d. per lb. ...

Tea, 2 lbs. per week, at 2s. 6d. per lb.

Sumr, 10 bs. per week, at 4d. per lb.

Coffee, 2 lbs. per week, at 3s. per lb.

Flour, 6 lb. per week, at 4d. per lb.

Jams, three tins per week, at 9d. per tin ...

CJondensed milk, three tins per week, at 8d. per tin

Cheese, 4 lbs. per month at Is. 6d.

Rice, 4 lbs. per week, about 3d. per lb.

I^CrCwIJ ... ... ... ... ...

Xjlei^Xl wvj ... ... ... ... ...

Small sundries (too numerous to mention)

In order to show more clearly the difference of cost of living in England and in
^hannesburg, I will bring forward table No. 1 of cost of living of a miner and his
Enily in England, and put beside it the cost of living in Johannesburg for exactly the
me articles : —

£ 8.

1 0
1 0

0 13

1 4

0 per month.

0 „

4 «
0 „

Monthly expen-
ses of miner's
family on the
Band in gro*
ceries.

0 8

)»

0 9

0 8

0 6

0 4

0 6

0 10

1 11

£8 0

Table VI.

KngUuKl.
£ 1. d.

TnomMl.
£ (. d.

Milk

1 ... * 1

0 2 4

0 15 0

Butter...

0 6 8

10 0

Meat ...

14 0

2 10 0

Vegetables

0 10 0

Bread ...

110

2 0 0

Gix)ceries

12 0

8 0 0

Rent ...

0 16 0

6 0 0

Doctor s fees

• •

0 10

0 7 6

£5 3 0

£20 12 6

Comparative
ooet of living
of miner's ftoi-
Uy in England
andthefirane-
vaal.

A difference in favour of England of no less than £15 9s. 6d. On looking through
'able No. II. in this statement, it will be seen that a balance of onl;^ 7s. per month is
sft for clothing, and it will be asked : " How can a miner clothe mmself and family
<& 7s. per month ? " The answer to this is that he cannot, but it must be remembered
hat at home there are wealthy men in everv district who help by their charity, to say
U)thiog of different " Dorcas Societies," who make clothing and distribute it among English aid so-
he poorer classes ; and there are philanthropists who found free institutions for the **"
Jenefit of workmen. In fact there are many things which help miners to tide over any
oisfortune through sickness or otherwise. There is none of this in the Transvaal, and
iTery man has to help himself or sink.

Mr, SrrUt

Have the mines never imported workmen and paid their expenses out ? — ^Not that importation ot
am aware of. '^"»

176 Mr. R. Barrow's Evidence.

Mr. Brochon,

White w»g«. In this statement we see that you have white men working at 12s. and 15a

shift. Is that so ? — Yes, we have got them at the Jumpers Deep. We have gc
many at 12a as at 15s.

Mr. Albu.

Do you consider them good men ? — ^They are men new out from home, and i
have not had much experience and they are glad to work for almost anything.

They are not miners, but men who come out here and say they have leai
nothing ? — ^Yes.

But these men would not get a shift at £5 10a per month at home ? — There
probability that they might. We are not supposed to know what a man is unti
try him.

^Itorfandf** *" What is the average pay in England for competent miners such as those you w

engage as stoping men. What is the pay in coal mines or tin mines at home
worked in the iron ore mines, and the average pay was what my opening states
says — 5a per day. That waa ten years ago.

jtoied miners' I will admit that £20 won't go a verv long way in the case of a married i
*''"**^^"* especially if he has to pay house rent ; but is it not a fact that most married men
provided with a cottage on the mine ? — No, there are not 10 per cent who have
cottages on the mine.

soud of single A single man on a mine pays about £5 or £5 10s. per month on the mine

"^*^ board ? — At the present day he pays £6.

I think £6 is an excessive amount. — I am speaking of the boarding-house at
mina

I know of a boarding-house at a Pretoria factory and the charge is £3 10a
month, and the men seem very well satisfied. A workman here who pays £6 per m<
gets his room, light, and his coal. Now, the average earning of the competent m
^!S?eiS! '*'*'• is between £20 and £22 per month. If he pays £6 per month out of that he has
over. Don't you think he could save a good deal out of that ? — Yes, I think
single miner ought to save a little out of that, but he has got a much better chance \
a married man.

In your statement I find that at home, a married man with a family of five,
9-lbs. of meat per week at 8d. per lb., that is 6a In the table relating to this cou:
the butcher's account is put down at £2 10s. Now meat does not cost as much hei
at home ? — No, but it is much inferior, it has not the same substance and it take
much more to serve you.
jfarried minenT Do you think a married miner's lot would be considerably improved if the r
^ companies were to erect cottages and charge a small rental for them, and that it w<

save the miner a, lot ? — If the companies could erect cottages and let them about i
think it would. Of course my figures refer to a miner who has to take a house i
place like Jeppestown.

All over the world if a man starts as ^ clerk or miner and is married, it is awkv
to make both ends meet, is it not ? — I am only speaking of England.

Do you think a man with three children is justified in taking a cottage at £8
month ? — Not at all. I am speaking of a man and wife with five children.

But you give us an exceptionally bad case. It must be very hard on a woi
and five 4shil£en if the husbemd has got no further in life than a miner ? — Yes,
you know we all make these mistakea

Mr. R. Barrow's Evidence. 177

The married miner with five children is badly off. What would you suggest to
medy the evil I want to be fair to the married as well as to the unmarried miner ?
•I beg your pardon, I did not quite catch what you said.

I am giving the married and the unmarried an equal chance. You admit that £20
» £22 is a good wage for an unmarried man. I admit that for a married man it is
sthing more than sufficient. What would you suggest to me to do. Can I give the
kuried man a higher wage them the unmarried because the former has got a wife and
ve children, and is not a better labourer than the unmarried. How can you suggest
a get out of this difficulty, if his labour is not worth to me more than the unmarried ?
-The only thing I can suggest i& to bring down the cost of provisions and house rent.
That is what we are all trying for, to get the Government to bring down the cost
ot living. The consequence would be that I would say to the unmarried man, " I can
y P^y y^^ ^^^ P^^ month." I would like to see the man with five children get on
well as the other. — It is very hard to suggest anything, because one man is as good
the other.
Well, what is the use of complaining if you cannot bring forward a remedy ? — The

y would be to bring down the cost of provisions and house rent.
Then the standard of wages will come down. It is a question which is troubling
whole world. I don't call an unmarried miner getting £16 or £18 a poor man. It
for the poor man I am speaking. I have been waiting for the answer for the last
Ho years. — I am afraid you will have to wait for another 10.

I can see that the married man cannot save anything out of £22. I admit that.
Iridence is being taken for the purpose of trying to remedy the evil. But you have
nme forward with evidence showing the evil, but cannot suggest a remedy. — Well, I
[Inow it is an evil.

Yes, I know. We know the price of dynamite is an evil, and the high freights
i-iie an evil, and the gentlemen who have given evidence have suggested remedies ? —
IFeQ, that is the only one that I can suggest.

All I can say is that the man with five children, who has not been able to hold a
lietter position them the ordinary miner, is better to leave his wife and children at
Jbme. If wherever he goes, to America or Australia, he is only able to earn the
West standard wage, he cannot support them properlv anywhere. I say it is a social
question, and you deserve the gratitude of manKina if you are able to solve this
question.

Mr. Hay,

In this Table IV., where you calculate out the cost of living in the Transvaal, you ''J^SgSl"**
kftve set down £3 a month for kitchen boy. In calculating the corresponding table
for England you don't put down anything for assistance in the shape of labour ? — No,
I have made a slight mistake in that

Of course it is quite apparent that in Elngland it is a struggle for existence
ieo(vding to the statement made, and the chances are that if a man, with a wife and
five children, would have to depend at times on charity for clothing, these people
would never need to have any assistance in the house work ? — No, that is quite right.

And in the corresponding position in this country they would not need to have
iamstance. The woman would have to do the housework ? — ^Tes.

Mr. SchmitZ'Dv/numt.

In this statement you reckon the family of five to be the man and wife and three
dbildren ? — No. A wife and four children. That makes six with the husband.

In England have the married miners any advantage over the unmarried miners ? ^^^uTmiiim

■ k

178 Mr. E Brochon's Evidence.

I I know in some districts unmarried miners have only a sleeping room, or thl

sleep in barracks. — ^On some mines the companies build houses, so they live chei|
than in the town. J

So they have a great advantage over the unmarried men. Then the married mi
has certain other advantages — he has got coal and light — but the unmarried ones fl
nothing. I know some in England and Germany where the companies try to give i
married miners some advantage over the others. In that way something can be dol
to assist the married miners here ?— Yes.

[ Mr. Brochon's Mr. Edward Brochon wsfl then swom, and made the following declaration : —

statement.

! I have begged for the privilege to be heard by you. My object is certainly n

j to worry you with figures and statistics which several eminent members of the mimi

L industry have already placed before you; I believe that now you have on thd

I different points of fact all desirable information. On the contrary, I have thought

! might be interesting for you to possess certain indications of a more general order^ I

I hear some explanations on the conditions of the gold mining industry of the Btt

I compared with those of the same industry in other mines ; also keeping in mind ih

I viewB of Urge I represent here great French financiers, I have also thought that you would 1

i deiSf "*" interested in knowing what advice these friends of the Transvaal could give you, Iii

i they the privilege of speaking to you on certain points on which they are espedsl

I oomportoon of Competent. I shall be as brief as possible. The Transvaal gold mines are of a pecnlil

I S^he"gSd ^*''*'^i^®' No mine in the world possesses in the same extent an industrial charaetJJ

mines. In all the gold mines of the world the production is subject to alternatives i

weakness and importance very often considerable, and the average, even when baai
upon the returns of several years, is often upset by the most unforeseen resulta It
that feeling of the unknown, the hope of a rich pocket, which in a few hours* wd
will return more than a whole year of labour may have given, which often csxd
the shareholders to be patient by keeping up their courage, and causes them to acoe]
very heavy sacrifices. In the mines of the Rand there is nothing like this; fto
RMuiMity of the moment a mine is developed its average richness is known — ^it is a 12 dwta, 1
wa?eMrand dwts., 7 dwts. mine — and there is no chance for that value to be altered in an
mines. marked way ; if you take the statistics of the mines from the beginning of thd

existence up to this date, you will be surprised with the regularity of the yield p
ton ; the working of a poor reef, such as the Main Reef in the central mines, ma
cause this average to appear smaller ; a more careful sorting of the ore may cause :
to increase, but on the whole the ore has not appreciably changed in value. It is thi
regularity which has made the fortune of the Transvaal, for, if at times capitalists aa
found who accept to risk their money with a chance of a problematical profit, some aa
always found who are disposed to open their purse when the business is a matter (
certainty. This regularity, I have said, has made the greatness of the Transvaal ; ;
has attracted to this country in a few years a heap of money which no other businei
Reduction of had ever obtained on the European financial markets. But it is also this regularit
nc^SSSj'!**^ which, excluding all hope of a sudden stroke of fortune, compels us to strict account
and does not allow us to work our mines if the budget established in advance for ti
working of them does not leave a margin for profit. It is this regularity whi(
enables the mining industry to come and say to you : Help us to save 2s. per ton, an
50 mines now idle will then work ; help us to reduce our expenses ana new miin
will soon be started. I could mention to you the history of a silver mine in to
country. The company working it was almost ruined, at least the capital wi
exhausted, when one day, by one Blast, a lump of precious metal, nearly half a ton

Mr. E. Brochon'8 Evidence. 179

eight, was discovered. That lump was worth, I believe, £3,000. This gave a new
age to the shareholders ; they reconstituted a new working capital which, in fact,
just as rapidly exhausted. Here, a similar inidtance is not possible — a mine pro-
24s. worth of gold to the ton, there is no hope for a change, and if the directors
ot establish the working cost below that figure they are compelled to close the
e down. There is no getting out of it. You will forgive, gentlemen, the frank-
with which I speak to you ; I trust you will also forgive the details with which
am woiTjring you. I do it because I believe that you wish to see things as they are,
d because I think that, when a question is being argued, it is nepessary to put it
ly and avoid misunderstandings. Then, gentlemen, circumstances are such that a
ber of mines on the Rand can only work at a higher cost than their returns, or,
some cases, with an infinitesimal profit ; the consequence is either the working cost^
be lessened or these mines must close down. If they close, the sources of revenue
the State would be lessened — its finances jeopardised. I have no need to insist on Neoewity for
to let you see, as well as I see it myself, the fearful consequences which will be va'a\"*g'o?d

to follow. Allow me, in passing, to say that the time no longer exists when ™^«»

hers of the South African Republic can say : " Let the mines perish, and let us go

to our former poverty." The South African Republic has taken some engage-

ts towards capitalists, who have opened their credit to the needs of its treasury,

its railway companies. Numbers of officials have linked their lives to the

srity of the State. The Transvaal has contracted heavy engagements ; it must

them ; the honour, even the religion of its burghers, make it a sacred duty. It

not be said that the mines, into which the Creator has put gold in sufficient

tity, are put in jeopardy through the fault of men. In order to render working

ble the cost must be reduced. This object can only be attained by two means :

, reduction of taxes; 2nd, economy in the work. Several gentlemen who have Meang of reduc-

*|meded me on this seat have told you of the reduction of taxes which the mining ISJte. ^**' ^
'jBdnstry expects from your justice and your clear-sightedness. I am willing
••to admit that to use the expression " taxation " with regard to the 56s. which
?8ie industry pays on dynamito. over and above the cost price may seem cruel
^S we think that the Government only receives 5s. out of these 56s. ; but still, as it
nmains with the Government to do away with these 56a in the interests of the
loontry, the Government hfiis the right to reduce this charge to whatever proportion
it chooses, the expression " taxation " is sufficiently justified. Be it as it may, the
Government has in hand the possibility to reduce the working cost of the mines by
IflL per ton ; that is the excess of expenses represented to-day by the exaggerated price
of dynamite, and transport of coal, and other merchandise and material necessary for
our work. Now, gentlemen, you have been told that 2s. means life for many min^s.
It is only 8 per cent, on the working expenses, but, as in many instances the working
eosts of a year reach and even exceed the nominal capital of a company, it may be
8 per cent, on that very capital; in cases where there waa nothing to give to theR«|uit8<>'^"o-
dttreholders, it means a dividend of 8 per cent., justifying the par quotation of their mg costs by
flharea Where there was a small loss, it means salvation instead of bankruptey. ^<'^«"»™«°*^-
Probably you will argue that the reduction in the cost of dynamite would not
constitute a loss to the State finances, but that such is not the case when we deal
^th the railways, of which the State is a large shareholder, receiving 85 per cent, of
ftft profita Your objection, gentlfemen, would not be right, and, as I have just
ttpluned to you, unless a prompt remedy is applied to the situation of the mines it
.ineans jeopardy for these, and, as a consequence, for the. finances of the State. On Advan^ of
fte contrary, if you give life back to many enterprises which to-day are stopped or SLht^^
^tagging towards bankruptcy, you will see very soon an increase in all the branches Sent **^*'°"

180 Mr. E. Brochon'8 Evidence.

of revenue of the State ; not only these enterprises, so sickly to-day, will be iJde
pay their share of public expenditure, but new ones will be created and therdj
contribute to it. Tne State would therefore find on the whole of the revenoo^^
increase far superior to the amount of which it may be short in its receipts
railways, but 1 may even tell you that this loss on the railways will proi
disappear ; reduce the tariffs and you will see an increase in the transport
timber, general goods, which to-day cannot reach the Rand, prevented as they an
the exaggerated expenses, will come to it, creating a wholesome competition, and
contributing to better the conditions of existence of the mines; and the raili
receipts will benefit by this transport which to-day beinff impossible, does not
Examples of similar facts which have taken place in Europe prove the ab
correctness of this law of political economy. Reduce the tariffs of a public servio9|
such as transport, by rail or water, postal or telegraphic service — very soon you gj
an increase in the quemtity carried sufficient to compensate the reduction in chaigl
and even to make the receipts larger than they were under the old tariff. I do aj
hesitate in stating that should the Government grant us the reduction asked i
concerning transport, an immediate effect would be felt in the different source* i
revenue, and before six months elapse the same receipts of the railways will eqU
those before the reduction of tariffs. I have stated that the second way to lower ^
cost of production in the mines was the economies which these must introduce in thi

Goyernment aid work. At first sight it would sccm that the State has nothing to do with tti
woHdng^*c!!f>to question, and that the mines alone should see to the reduction of their expensea ]
indispensable, fg^t, this is uot corrcct ; and if it is true to say that the mana£;ing boards of 4
different mines should act with energy by themselves, it is not less true that tfai
efforts would be useless unless a moral and material action on the part of tl
Government comes to help and support them. The first moral action on the paiii
the Government must be to reduce the excessive price of things over which it hM
control. What right would the Government have to advise moderation and econan

^^SoMmitc?*^"' ^^ ^^ allows the Dynamite Company to take a profit of over SOs. per case without ai
way justifying such exaggeration ; and if it allows the Netherlands Railway Compil

^wSr»ui*^'* ^ apply tariffs, so high that, up to the time when rinderpest made transport by a
wagon impossible, it was to that last means of transport that merchants in Johcuini
burg had recourse, as being more advantageous to bring their goods from YereenigiD
Let the Government give the example by suppressing these two abuses, then we ahi
see, under pressure of public opinion in the whole world, the managements of ti
different mines find their way to economise. Prodigality is one of the mo
contagious diseases in the world. If you find yourself amidst prodigal people y%
will soon lose the notion of the value of money; the pound sterling, which i
ordinary life you think twice before spending, will slip between your fingers withoi
your noticing it With regard to this, gold mining oistricts have always been tt
seat of ideas and training ever to be regretted, and the Transvaal, like otb
auriferous districts has not escaped that disease. Let the Government be the first i
react against this tendency, let it set the example wherever it is possible to do fl
and little by little we shall attain the object in view. I have just explained that tl

^^a^iS*°" **' Government should give the example by the suppression of two abuses ; its woi
should not be limited to that, and I believe that a great deal can be done by tt
introduction of regulations in many of the branches of the administration, chiefly thi
of the railwaya It is with great reason that you have been told here that the fir
condition to reduce the salaries of white employees is to render their condition i

R^J^ 5?Si'' existence more economical Well, gentlemen, it is not onlv the reduction of tarif
MfaniniftnSon which should bring about cheapness of provisions on the Rand ; it is also d

Mr. E. Brochon'8 Evidence. 181

lisation of a rapid and re^ar transport of these provisions. For instance, in
riesent state of things would it ever come to a farmer's mind to send milk from
jelburg or Standerton to Johannesburg ? Certainly not, for he knows that the
irould only reach its destination after several days, and consequently be spoilt,
■kill there is but one night's journey between these two points and the great •jj -q^^ j^
imesburg market. But it is known that the railway company, six times out of o^f great toSL.
would take several days to bring this produce to its destination. Do you know,
Ismen, that if the railways of Europe showed the same diligence to carry
^ble provisions, large agglomerations of people, such as are in London and Paris,
populations are respectively five millions and three millions, would die of
Lon ; a bottle of milk, which is sold there for 3d., would reach a fabulous price.
of this, each night special and rapid trains run from all parts of the country
I the capital The milk obtained at night arrives there at daylight ; the same
takes place for vegetables, fruit, eggs, and all perishable provisiona Farmers
through it, and inhabitants of cities find therein the security of a wholesome
]dbeap alimentation. Why does not a similar system exist here ? Why does the
J, the incapacity of the Netherlands Company, deprive your farmers of this
of revenue and remuneration for their labour ? Why should we be forced by
pay here fancy prices for provisions only when the sluggishness of the service
~ them to lose all their freshness ? 1b not this a state of things all the more
all the more deplorable, that it is the result of the dilatory ways of a
ive administration destroying the resources of producers, whose present
tones, however, should deserve the greatest consideration ? But, gentlemen,
mot only in the administration of the Netherlands Railways that regulations and
afaoula be introduced. You have been told here about the budget of the State.
I0U8 figures have been put before you, and certainly if we take into con-
tion the actual state of the different sources of revenue, that is to say,
mining industry, it must be acknowledged that the amount is exajB;ger-
Permit a friend to tell you that here an error exists on the part of the
unent of the Republic. In my opinion the error is not to have spent
)jOOO in public works ; no, that is a useful expenditure of which the whole PubUc works.
pMtry — ^industry in the first line — feels the benefit. The error is to have charged
Miqpecial budget with this enormous amount. Why does not the Government take
bintafie of its credit to borrow money, which could easily be found at 3 J per cent ;
I iDother 2 per cent be added to it as a sinking fund for a comparatively short
nod, and instead of crushing us with £900,000 of expenditure in one year, about
■jOOO per annum would be afi that would be required n-om ua This system applied ^^n^J*^ ^
'the £9,000,000, which at the present day the railways would cost, would constitute priauwif '^'^'**"
if^r charge than is at the present moment the service of its debentures, and in a
nod comparatively short in the life of a nation, the railways themselves would
ttme the entire and free property of the State. This powerful instrument of
Ktane uid civilisation would require no other expense beyond that concerning
BBediately its maintenance and traffic expenses ; I shall draw your attention to the
Ci that the necessary period is in itself very inferior to that of the life of deep level
tatt — that is to say, the great mines of the future. I certainly do not pretend,
■tlemen, to supply you in a few lines with a financial plan, my object has oeen to
B your attention to the ways opened to your Government At the beginning of -'■
ii note I expressed my intention to inform you of the ideas of great financiers of
9 coantiy; I have now placed them before you. As you may see, they are dictated
jf^abadnte confidence m the stability of your institutions, in the future of your
JMiby; therefore, they deserve your consideration. There is no doubt that the

182 Mr. A. Brakhan'8 Evidence.

projects which I have just mentioned require a serious study ; on this subject
me to tell you with a frankness, which may perhaps be considered ratiier
that your administration, whose financial experience is only a few years old,
as yet acquired the knowledge of these questions as may have been done bjr
bodies of large European centres. Your right judgment, the good faith wl
show in listening to, and weighing the arguments placed before you, cannot
sate this experience, only acquired by long years of labour. I am far from
that you should relinquish in any proportion the management of the affairs
Republic, but I believe that when you were advised to adjoin to your comi
some foreign members, the advice was good. I believe that if your Qovi

^*^mnitteel**^ jnaking the duties of the Executive Council lighter by appointing great co
for each of the special branches of public administration, finances, legislation,
mines, industry, agriculture — committees composed of burghers as voting meml
I believe that these committees could, by studying, each one, the speciality de^
upon them, prepare and greatly facilitate the task of the Executive Coi

Advisory boards, believe abovc all that if every one of these committees adjoined themselves

members, chosen among foreigners established in this country, you would obtain
serious results. In the first place, you would draw to you specialists who woiil<
you the benefit of all the science acquired in their respective countries, where
questions have been for centuries the subject of deep studies. In the second
these foreigners working with you and beside you, would learn to know you,
mutual esteem would prevent in future any friction, and perhaps facilii
harmony so desirable among the different inhabitants of this country. In the
place, this mark of the greatness of your ideas, of your earnest desire to get at i
truth, would give the old world the proof of the straightforwardness of your
tions, would reassure it in the future, and lastly would re-establish, to the
benefit of the Republic, the confidence so necessary to its prosperity, its develo]
and even security.

Cliairmcm.

The Chairman said he would not put any questions to Mr. Brochon, as his
ment could be dealt with when the report was being prepared If any of the
advisory members of the Commission thought it necessary to make a similar
ment, it would not be necessary to give it in evidence but to hand it in.

Mr. Brakhan.

jmcllrtl*" ^^' Brakhan, at the sitting of the Commission, asked if he would be allowed

Mr.

statement.

conformity with a few remarks made at last sitting, to hand in a statement i
statement was mostly on general lines, since very full particulars had been alrej

fiven. He had made a more especial point of it to show that if certain reduciii
ad been made in the railway rates, still very fair and even very good prci
would remain to the Netherlands Company, the Orange Free State, the Cape i
the Natal Railways. He then handed in the following statement : —

Mr. Amandus Brakhan, manager, for South Africa, of Ad. Goerz and Co., L
of Berlin, London, Paris, and Johannesburg.

Market inflation. The depression at present prevailing with regard to the mining industry of '
South African Republic is attributable to some extent to the inflated, market con
tions which prevailed about eighteen months ago; but there can be no doubt whate
about it that the principal cause has to be looked for in the various burdens wfa
militate against favourable working costs. These burdens have to be divided i

Mr, A. Brakhan'8 Evidence.

183

[dasses — ^firstly, those which the directors of mining companies have to remedy
Ives through their managers, and secondly, those for an alleviation of which
lunity can reasonably look to the Government of this State.
|There can be no doubt about it that the wages ruling on the mines of the
^rsrand are high, and that they must come down in course of time, partly
fh an influx of skilled labour, and partly through a reduction in the cost of
which is very high at present. There are many instances on these fields
reductions have already been effected, without causing any trouble where it
pointed out to the men that it was quite impossible to go on paying the high
which were ruling. I have no doubt that further savings can be made in this
icm, but it seems to me that this can only be effected gradually. One might
the wages ruling at the present time on the Rand to be about 75 per cent, to
ler cent higher than those paid in California, but it must be borne in mind that
the cost of living is much lower than here. I am, however, of opinion that the
of white labour does to some extent not only depend upon the pay a man draws,
[iipon the value he gives for his remuneration. A man may be expensive at £15
month if he does insufficient work and wastes the company's stores ; while
r's pay of £30, or even £40 per month for risky work, such a.s shaft-sinking,
result in work which is much cheaper, and which expedites the company's
' ma. Diligence and intelligence ought to be encouraged, and I, personally, am
iiVour of doing as much as possible by contract work, which puts the men on their
and generally gives good results to the companies, if the contract price has
determined intelligently by the manager. Ccmtracts which enabled a man to
month up to £100 or even more, can, to my mind, by no board of directors
ided It is not alone dear, but also in many cases inefficient labour under
the mining industry has to suffer.

The supply has generally not been sufficient for the demand, and it was hereto-^
very dimcult to effect a reduction. In October last, the wages were reduced
rhat, and this measure having worked well, it has quite recently been resolved
board of directors to effect a material reduction, which averages 30 per cent,
wages ruling at present. It is to be hoped that this step will not result in too
a number of natives leaving work. It may, however, be reasonably expected
if this should take place, and the supply become inadequate for a time, the
tives will soon return or others take their place, if the mines remain firm in their
ktion. One point must, however, not be lost sight of : if the Government
such steps as will tend to expand mining operations, the demand for native
* is bound to increase, and it behoves us to look around in time to fill this
id. I am afraid that private endeavours, even if they be in the hands of the
itself, will prove unavailing to cope with the demand, and I think the
lent ought k> seriously consider what steps they are to take to assist the
industry in its endeavours. Such taxes, 1 think, must be imposed on the
Kve living in this Republic as will virtually compel him to work not alone for a
period, which is generally now the case, but for the best part of the year. The
lent might also to advantage approach the adjoining States and Colonies to
their co-operation in securing an efficient supply of native labour to the gold
for they must be aware that any such facilities will redound to their
through the extended carrying trade on their railways and the spending
ot their native population. It is especially in the direction of Delagoa Bay,
at present such conditions obtain, that the bringing of natives to these fields is
ezpensivQ. A tax of 27& 6d. per head is levied by the Portuguese authorities,
everyoiie will own, is exorbitant Not alone is this excessive tax exacted, but

White vmget.

Contract work.

Native labour.

Redaction of na-
tive wages.

06>aperation of
Government
neoeeeary to
supply native
labour: means
suggested.

184 Mr. A. Brakhan^s Evidence.

the greatest difficulties are placed in the way of labour agents. There are
ways in which the Government can assist the mining industry in its endeai
procure a sufficient and cheap native labour supply. I will only mentioli.'^^
Locftttont, Na- encouragement of locations not far from the Rand, the unselfish co-operation of
rionen^'"^ Native Commissioners in sending down boys, and an adequate administration of
iSn, ^^^^^^ Pass and Liquor Laws.
Boudtoadmin- ^ think that the suggestion to establish a special Government Board, wl

btor Pmb

u nor iMw ^ confine its work to questions afiectin^ the mining industry, is a most excelli
MiShtoprevent The welfai*e of the State is so intimately connectea with the prosperity or oti
gold thefts. ^£ ^jj^ industry, that it is of the greatest importance to have everjrphase studied
Board which has an intimate knowledge of the requirementa To attain this
think it would be of the greatest importance to appoint to this Board also a o
number of members who are leaders of the industry. It would be well to give pQ|||
to this Board to administer, and, if necessary, amend, with the consent oH
Executive Council, the Pass and Liquor Laws, and to take such measures as will t(
to decrease the gold and amalgam thefts.
Bzoenive prioe The price charged to the mines for djmamite is out of all proportion to the OO0I
ofdynumte. ^^hJch the explosive is being laid down here by the monopolists, for everyone kiij
that the quantity actually manufactured here is only very small, and that, th<
enormous profits accrue to the monopolists ; whilst the Government has to be
with a modest 5s. per case, and earns all the abuse for a state of affairs which
ought not to exist. Since it would appear that the manufacture of dynamite i
country has insurmountable obstacles placed in its way, as all the articles neoessai^^
the manufacture itself have to be imported, and are several times the bulk of dynani
further, as the manufacture itself is here very expensive ; and, finally, as the ^

Products can hardly be utilised in this country, and might even be a source of dai||
think it entirely unreasonable that the industry shomd be made to pay 107& 6d
a case of blasting gelatine, which can be placed free on board at Hamburg for abol

Tnn trade in quarter of that amount. I beg to give it as my humble opinion that once free ti
*'^^'**°^**' in dynamite is established in the Transvaal there would be no question of a ri]i|
in this article ; the large consumption in the Transvaal would create such competil
that no ring could come up against it. Reasonable prices for dynamite woula al
mining costs most materially. The expenditure per ton of ore crushed depQ
naturally on the condition and width of the reefs in the various minea Whilst,
instance, this item amounts to only Is. 6d. in the Meyer and . Charlton Gold Min
Company, it continues to be 4s. 4<L per ton in the Princess Elstate and Gold Mio
Company, or expressed on a percentage basis — 6'325 per cent, as compared with li
per cent, respectively of the total working costs.

Exoeerire noi- The railway rates paid, not only to the Netherlands Company, but also to
weyratet. Hj^qq feeding that compcmy, are so preposterously high that they tend to mi
gold mining in this country in most cases almost an impossibilitv. When some Ji
ago the traffic was a limited one, those rates may have oeen perhaps justified. Bui
that time everyone was looking forward to very material all-round reductions, wh
however, so far have in vain been waited for. There can be no doubt about it, t
if these rates are not reduced, the expansion of the industry will be materii
checked, nay, that operations will even have to be materially curtailed, since a red
tion in the price of dynamite and in the railway rates, in many cases, means turn
a loss into a profit. I think the Government will grant that the industry <
reasonably look forward to their warm support in this matter, for the leaders of '
industry have shown that they use every endeavour to bring about such refonxu
the management of the mines as will tend to the highest possible economy. I h

Mr. A. Brakhati's Evidence. 185

d several tables worked out in order to show what the profits of the various rail-
lys during 1896 have been, and also what interest would nave been secured in case
rtain reductions had been made in the ratea

STATEMENT No. L

The Netherlands Company will pay on its ordinary share capital, after paying A^roadm^bj^
terest on bonds, redeeming bonds, placing £297,000 to reserve, and paying to the JZdM luo-
Mffd and staff £52,677, a dividend of 1471 per cent. The profit -to the Government ^y ««» woe
ill amount to £895,475. These figures are approximate. Now, if the passenger
tee would be reduced by 15 per cent, and the goods' rates by 30 per cent., a saving Meet of isper
the community of £801,900 would be effected, and the shareholders would still u^n* on <S>
eeive the respectable dividend of 8*52 per cent The Government's profits would, of S^^lS^"*"™
arse, be materially reduced, and woula amount to £282,064.

STATEMENT No. XL
This deals with the returns of the three systems of the Cape Government Mnn» of the

1.1 11 i./M <■.« «*^. /M..i«n^ ITT- three 0»pe

ulways — both as regards local traffic and through traffic te the Transvaal. Here a nsiifr%y9 tor

dnction of 10 per cent has been taken for passenger rates, and 20 per cent for ttml^rSiao^

lods rates, as the present rates are considerably lower than those of the Netherlands ioperoMt*for

3inpany. The interest earned in 1896 on all traffic on an invested capital of nu0enger,Mid

18^18,580 for the Cape lines, or including Orange Free State line, of £20,790,288— ISSuSSbc?'

IB been £8 198. 7d. per cent, equal to £1,867,198 9a 6d. This includes 50 i)er cent

: the net receipts on traffic over the Orange Free State line, and 4 per cent interest

I the invested capital of £2,571,702. With the above reductions on the rates, the

rerage interest of the three systems of the Cape would amount to 5*18 per cent,

[usl to £944,776. The Western would earn 444 per cent, the Midland 7*22 per cent,

id the Eastern 3*06 per cent. It must be borne in mind that this is an average rate

r the whole system, and that certain lines pay even at present no interest, or only a

sty small one. I have shown in this stetement a reduction on all receipts, whilst in

biAement No. VI. I have dealt with the benefite accruing in such a case to the

nuiBvaal.

STATEMENT No. HL

The same reductions in the rates as in the Cape operating on the Orange Free Estimated re-
»te RaUway would still yield interest at the rate of 19*98 per cent, equal to l"nTe**Fre'li
>13,567 to the Free State for 1897, when this line is worked by the Government ^J? wS^^
ilia is, of course, on the basis of the traffic during 1896. The rate of interest on the <^ eetiinated
vested capital of £2,571,702 amounted during 1896 actually to 269 per cent, of ^r'^HSl'^^
hich half, after deducting 4 per cent on the invested capital, went to the Govern- S5^?S2t!on
ent of the Orange Free State, amounting to £289,553. , srooda traiBc.

^ » » » loterett of

Orange Free
StateIUUwey«i

STATEMENT No. IV. '°'^«»-

During 1896 the Natal Government Railways yielded £11 9s. ^d. per cent on an intemtonNatai
ivested capital of £6,236,555, equal to £714,224. Had similar reductions of 10 per J^ST*' '"
nt and 20 per cent been made on the rates the interest would still have amounted
0 £8 18a per cent., equal to £509,983.

186 Mr. A. Brakhan's Eviidetice.

STATEMENT No. V.

Wt5a- industry, would have saved if the reduction in the railway rates, mentioned in thr
B aiu^ previous statement, had been ruling. It must be well understood that I give here

Eitimaw econ- This Statement shows how much thei Transvaal, ^.e., inhabitants and the miniiu

omy to Trans-
vaal p
tion on
erlanda _ _ _ ^

ttmra'h rat« ^^^^ ^^^ saviug ou the through traffic from the Cape, Orange Free State, and >iatal,
for i&j, with to the Transvaal, and on the entire traffic of the Netherlands Company. Unfor- \
rSdo^nofiS tunatclv, no figures as regards the Portuguese line are in my possession. The saving
PMsenra.and ^ ^^® Transvaal on this basis would have amounted to £1,195,201, of which nearly a<
S^o^.on million would directly or indirectly have benefited the mining industry. 1

STATEMENT No. VI.

Ertimatedooftof It is Well to analyse what it would cost the Government to expropriate the,

ofnSway. ^ Netherlands Railway Company if this course were decided upon now. I find that the.

price would be about 257 per cent, equal to £2,996,600 for the total issued tapital of

£1,166,666 (of which £476,033, equal to 5,713 shares), are owned by the Government,

Adding to this the issued debentures, the Government would have to provide a total

of £8,424,633 (minus the value of their shares in the ordinary capital of the

Eitimatodproflt Netherlands Railway Company.) Taking the safe figure of 4J per cent, at which the

Smdfl Bidiw Government could borrow, the reduced rates would still yield her £354,480, after

priaiflon!*^'*^ paying all working costs, 10 per cent, of gross revenue for depreciation, and the

interest on the loan.

I am, however, firmly convinced that the reduction in the rates would be followed
by a material expansion of the traffic, thus increasing the profit

STATEMENT No. VH.

Profits on Eng. This Statement shows the average yield in per cent per annum of some of the
liA rauways. j^g^j^g English railwaya

Working costs of I append detailed cost sheets of the Meyer and Charlton Gold Mining Company and

ton^wid^rin- the Princcss Estate and Gold Mining Company, numbered respectively VIII. and IX.
m'oS**^ ^' ^^^ ^^^ P^^ ^^^ crushed of the latter company is higher than on the Meyer and
Charlton, caused through the thinness of the reef. The cost of the Princess Elstate
and Gold Mining Company, through lower prices for dynamite and a reduction in the
railway rates, would be substantial, as the figures for dynamite and fuel per ton
crushed are 4s. 41d. and 3s. 7*7d. respectively. Both at the Meyer and Charlton and
Princess every step has been taken to reduce expenditure as much as ever possible,
and consequently the cost of the latter company shows a marked decrease against
that ruling during 1896. In the same way the working costs of the Meyer and
Charlton have been reduced from 248. in 1896 to ISs. 9d. for April last This reduc-
tion is partly owing to an increase in the stamping power.

STATEMENT No. I.

NETHERLANDS RAILWAY.

Average aggregate earnings for 1896 according to the Chamber of Mines Railway
report, £2,970,000 ; of which 41 per cent, may be expected to cover working expenses ;
this would mean a dividend of 14*71 per cent, on the share capital and a profit of
£895,475 to Government

According to the 1894 and 1895 returns, the revenue for passenger traffic was
about 20 per cent of the total traffic receipts.

Mr. A. Brakhan*8 Evidence. 18T

^^^^W^^^^i^»»W>WP^WPI

Taking a reduction of 15 per cent, on the receipts from passenger traffic, and of
} per cent, on goods, the receipts would have been as follows : — .

REVENUE.

Passengers ,.. ... ... ••• .. £594,000

Less 10 per cent ... ... ... 89,100

Goods, etc., ... ... ... ... 2,376,000

licss 30 per cent ... • ... ... * 712,800

£504,900

1,668,200
£2,168,100

EXPENDITURK

Working costs (41 per cent of £2,970,000 .... £1,217,700

Interest and redemption of loans... ... 335,500

10 per cent of gross revenue to reserve ... 216,810

Guaranteed interest on shares ... ... 66,250

Of which —

85 per cent = £282,064, goes to Government
10 pejr cent = 33,184, goes to Shareholders.
5 per cent = 16,592, goes to Directors.
The Shareholders get £66,250 guaranteed interest.

33,184 surplus dividend.

Total ... £99,434
]Equal to 8*52 per cent per annum on the capital of £1,166;666.

£1,836,260
£331,840

STATEMENT No. 11.

Cape Government Railways.
Basis.: 1896 returns.

20 per cent reduction on goods traffic receipts.
20 per cent reduction on coaching receipts (passengers and parcels).

WESTERN SECTION.

EarTiinga.:
Coaching ... ... ... ... £539,260

Less 10 per cent ... ... ... 53,930

Goods, &C. ... ,.. ... .., 675,930

Less 20 per cent ... ... ... 135,186

£485,330

540,740

Total ... ... £1,026,070

ExpeTtditure^
Total ... .,. ,.. ... ... ... 674,460

Net balance ... ... £351,610

Capital entitled to interest, £7,918^94.

188

Mr. A. Brakhan*8 Evidence.

Eaminga :

• ••

Coaching

Less 10 per cent

Qoods, &C.

Less 20 per cent

• • •

• ••

Ea^enditijure

MIDLAND ST8TE1L

• • • • • •

£219.453

• • • • • •

21,950

£197,603

• • ■ • •»

1,116,142

• ■ • • ••

223,228

892.914

£1,090,41T

••• • ••

608,232

Net Balance

£482,1861

Capital entitled to interest, £6,6T4,890.

Eaminga :

Coaching

Less 10 per cent

EASTERN STSTEM.

••• ••• •••

• • • • • • • »•

••• ••• •••

••• ••■ ••»

Net Balance

£98,77a
9,877

£88,893!
308,140

Goods, &C.

Less 20 per cent

£385,170
77,030

Expenditv/re

£397,033
286,072

£110,961

Capital entitled to interest, £3,625,300.

NET REVENUE AT REDUCED RATES.

System.

Capital

entitled to

Intereet.

Met
BkUno*.

TIeld
lta|Mr
oant

Western

£7,918,390

£351,610

4*44

Midland

6,674,890

482,185

7-22

Eastern

3,625,300

110,981

3-oe

Total

£18,218,580

£S44;r7r

61S

Mr. A. Brakhan's Evidence.

189*

STATEMENT Na IIL
Obanoe Free State Railways.

EamiTigs:

Coaching

Less 10 per cent.

Goods, &c

Less 20 per cent.

•• •

• • •

£315,618
31,562

£728.216
145,643

Expenditv/re

£284.056

582.573

£866.629
353,062

Net Balance

£513,56r

Which is 19*98 per cent, on £2,571,702 (capital entitled to interest).

STATEMENT No. IV.

Natal Qovkbnuent Railways.

REVENUE.

Passenger and parcel

... • • •

... £230,018

TjesH 10 per cent

• •■ . • •
... • • •

23.002

£207.016

Gkx)ds, &c.

... £906,196

Jjesa 20 per cent

• • • • • •

181,239

724.957

£931,973

EXPENDITURE.

Total

• . • •••

Net balance

• • • ...
• •• • ••

421,990

£509,983

Capital entitled to interest, £6,236,555. Yield, 8*18 per cent per annum.

N.B. — ^Expenditure includes £20,284 3& 8d. for compensation in connection witb.
the Olencoe Railway Disaster.

190 Mr. A. Brakhan's Evidence.

STATEMENT No. V.

Recapitulation.

The gross earnings of through traffic to the Transvaal in 1896 are : —

Cape Government (including O.F. State Line) Railways.

£1,592,898,. of which

Taking the passenger traffic at 30 per

cent of the total £477,867 ; 10 per cent, £47,787

Taking the goods traffic at 70 per cent.

of the total 1,115,031 ; 20 per cent, 223,006

Natal Government Railways.
£680,600, of which

Taking the passenger traffic at 20 per

cent of the total £136,120 ; 10 per cent, £13,612

Taking the goods traffic at 80 per cent

of the total 544,480 ; 20 per cent, 108,896

Netherlands Railway.
£2,970,000, of which

Taking the passenger traffic at 20 per

cent, of the total £594,000 ; 1 5 per cent, £89,100

Taking the goods traffic at 80 per cent

of the total £2,376,000 ; 30 per cent, 712,800

Total saving £1,195,201

(Exclusive of Portuguese Railway, report of which is not to hand.)

The maximum rate of the Netherlands Company, according to the Concession, is
fixed at 6d. per ton per mile.

It would appear, however, that the Netherlands Company's share in through
traffic from the Cape amounts to 7'7d. per ton per mile from Vaal River to Johannes-
burg.

STATEMENT No. VI.

Netherlands Railway.

Should the Government expropriate the railway at the rate of 12 per cent, i.e.,
an average dividend on Netherlands shares on the basis of the following dividends : —

9 per cent for 1895,
14 per cent for 1896,
13 per cent for 1897,
The amount to be paid by the Government would be —

Per cent
20 times 12 per cent ... ... ... ... ... 240

Plus 17 per cent (1 per cent, for each year 1897-1915) ... 17

257

Mr. A. Brakhati's Bvidenoe.

191

On a capital of £1,166,666 ... ... ... ... £2,996,600

The debenture debt of the Netherlands Railway Company at the

end of 1896 amounted to ... ... ... ... 6,428,038

(Since then authorised, £1,100,000.)

Government would have to provide for

... £8,424,633

At the reduced basis of 1896, and assuming Government can raise money at the*
rate of 4^ per cent, its net revenue per annum would amount to —

Gross revenue

Expenditure :

Working cost ...

10 per cent, depreciation

4| per cent, interest on £8,424,633

Net revenue

£2,168,100

... £1,217,700
216,810
379,110

1,813,620
£354,480

STATEMENT No. VII.

ENGLISH RAILWAYS.

Name of Railway Company.

iRBued Share
CapitaL

lasued Loaa
CapitiO.

Average Yield

on Total

Capital per

Annum.

Per cent.

Great Eastern Railway

£32,868,519

£14,784471

about 3

Great Northern Railway

37,204,305

12,972,763

.. 315

Great Western Railway

59,392,000

18,351,734

„ 4-32

LAncashire and Yorkshire Railway...

36,346,616

16,931,017

„ 3-59

liondon and North- Western Railway

78,782,655

37,532,804

« 411

London and South- Western Railway

25,780,633

12,365,359

„ 3-59

192

Mr. A. Brakhan*s Evidence.

STATEMENT No. VIH

MEYER AND CHARLTON GOLD MINING CO.. LTD.

Expenses for the year ending Sist December, 1896 :— Mill tonnage, 101,897.

Native labour \

Native food j

White labour, salaries, &c., induding
manager^s salary and all administra-
tion expenses at the mine

x^OCU < • • • • • • • •

Dynamite
Cyanide ...

.^uXUC ... ... ...

Royalty

Mining timber

Timber, deals, &c

*i9MX)A .•* ... ...

-Oils, grease, and paraffin
-Oandles ...
Eopes, steel and manilla
Forage, chaff, and bran ...

Jllectric spares

Mill spares, shoes, dies, cams, cam shafts

stems, mortar boxes, screening, &c. . .
Trucks, wheels, and rails (capital

account)

Pipes and pipe fitting . . .

JNise and aetonators

•Sundry Stores — Bar iron, bolts and

nuts, assay chemicals, machinery, &c.
"General charges —

Insurance and sundries £5,523 14 3

Licenses and rents ... 84 0 0

Printing and advertis-
ing 1,089 15 1

Directors' and com-
mittees'fees 1,108 0 0

8. d.

39,630 9 9

32,520
10,647

7,700

4,359
290

2,017
920
213
777
983

1,494
264
279
190

15 0
12 9

19 4

15
2

1
2

13 4
11 7

7 10

15 1
10 10

14 3
10 11

9 9

16 11

711 14 11

260 0 0
793 13 6

6,894 6 5

7,805 9 4

£121,757 8 9

Cost per Ton.

7 9-803

7 0075

2 1-202

1 6-228

0 10-320

0 0-687

0 4-776

0 2-179

0 0-505

0 1-841

0 2-327

0 3-537

0 0-626

0 0-662

0 0-453

0 1-685

0 0-616

0 1-877

1 4-318

1 6-474

24 0-192

Percent.
Total Coot.

32-549

29-178
8-745
6-325
3-581
0-238
1-657
0-766
0176
0-639
0-808
1-227
0-217
0-230
0-157

0-586

0-214
0-651

5-662

6-411

100

Mr. A. Brakhan*s Evidence.

198

STATEMENT No. IX.

RINCESS ESTATE AND GOLD MINING CO.. LTD.

Average Working Costs per Month.

Deecription.

Amount.

Coet per
Ton.

Percentage
of Coeta.

£ 8. d.

8. <L

IVO Wft^GS ••« ••« ••• ••• ••■

2.165 2 4

8 7-7

26-73

ive food ... ^.^ .., ••• •••

321 10 1

1 3-4

8-96

opean wages, including contracts

2,058 14 2

8 2-6

25-40

X ■ •« • •« • »« »«« ••• •••

912 3 11

3 7-7

11-26

lamite and gelatine

1.087 15 6

4 41

13-42

iUlQC ••• ••• •«« ••• •••

99 18 9

0 4-8

1-24

le timber .^ .., ••• ..•

81 5 0

0 1-5

0-38

MO ••• ««« •■• «•• ••• •••

28 18 9

0 1-8

036

U BvCd ■•«« ••« «•■ ••• ■••

82 18 11

0 4-0

1-02

)ncant8 ... .., •.. •••

113 10 6

0 5-4

1-39

IvUdS • ■« ••« «•• ••• •••

130 14 6

0 6-8

1-61

)e8 and dies

55 10 0

0 2-6

0-68

)e and caps

96 3 11

0 4-6

119

^eening

11 14 9

0 0-6

0-15

"ews, nails, bolts, &a

10 18 11

0 0-5

014

ttdry stores

20 0 8
517 13 1

0 1-0
2 0-8

0-25
6-38

ad office charges ..•

209 8 4

0 10-0

2-68

odry expenses at mine

151 3 8

0 7-2

1-86

£8.104 9 11

82 41

100

194 Mr. H. Jennings* Evidence.

Mr. jenningcMB. Hennen Jeknings, Consultin? Ensrineer to Messrs. H. Eckstein and Co., was:

then called to give evidence.

Witness said : I have resided in Johannesburg since the latter part of 1889.

Chairman.

On what points do you wish to give evidence ?

Witness.] I wish to give evidence in accordance with the Chairman's statement,,
in order to bring to light the actual state of the mining industry of the Witwatersrand
goldfields, and the reasons for the same, and my candid opinion on the present
condition of affairs. I have a statement to make which I wish to read.

Witness then read the following statement :

I wish to make a .statement, more or less summing up, including and extending
the evidence of preceding witnesses, and to vitalise the facts and statistics set before
you by a connected linking of these facts in a logical and orderly manner, and to give
you my candid ideas as to the actual state of the mining industry.

The magnitude and wealth of these goldfields have been examined, discussed, and

written upon by very many able men from all parts of the world, and they have all

agreed in stating that this deposit is unique in its characteristics, and contains vast

Extent and na- possibilities. Thcsc recfs, which are conglomerate beds, have been traced for some

ture^j^ reels gQ ^{Iqq . showing Varying thickness and gold value, and in one rpint proved by the

^wiithoJreef^ ^^^^^®^^^^'® '^^^^^'^ ^ a vertical depth of 3,130 feet. Mr. Hamilton Smith has
happily described the fields by stating that the excellence of these mines is not duo to
their exceeding richness, but rather to the large continuous bodies of ore of a
moderate ^ade, and has reco^ised the necessity for the best possible mechanical
plants, and the most skilful ana economical management. He, moreover, was of the
belief that if the management were radically bad, not more than three or four mines
could have yielded considerable profit. He also estimated (January, 1893) that within,
the then recognised paying area of the Witwatersrand goldfields, down to a vertic^
depth of 3,000 feet, there was probably 325 million pounds sterling worth of gold to-
be extracted. His statement has been corroborated by Mr. Schmeisser, a German
Government engineer, who estimated at the end of 1893 that down to a vertical
depth of 3,900 feet, and for a lateral extent of eleven miles, there were possibilities of
£349,367,000.

Professor Becker, of the United States Geological Survey Department, who
visited these fields in 1896, estimates the possibilities within twenty miles of
Johannesburg, to a vertical depth of 5,000 feet, at about 700 million pounds sterling.

^ooiku^oiw^o! Hitherto, in all gold-mining regions of the world, gold mines have been consider^
Rand. highly speculative ventures, and liable at any time to give out ; they have nowhera

else sucn advantageous natural conditions as here for making a staple permanent
industry, nor the same justification for the great expenditure of initial capital on their
equipment and development. Gold is here supplemented by coal in close proximity,,
ample water supply, and favourable climatic conditions.. . . Of course there are fluctua-
tions even here in the richness of the different mines, and there are unaccoimtably
rich, medium, and poor mines in juxtaposition or in distinct sectiona There is no-
doubt there are sections of the Rand which can be continued to be worked at a good
profit at the present rate of costs ruling on these fields, but there is a far larger
amount of groimd that will not be worked, or only tried and then abandoned, if the
conditions prevailing as to costs are not lowered, and the predictions of the eminent
authorities I have quoted can only be realised by all parties interested doing every-
thing in their power to obtain highly efficient working, at low cost, and thus increas*

Mr. H. Jennings* Evidence. 195

mg the scope and pcmibilities of the whole fields. Take Professor Becker's estimate ^^^J^ **'*
of 700 millions sterling. At the present rate at which we are now taking out gold,
these fields would have a life of about 90 years, but the rate at which we extract this
gold will be constantly increasing if the working conditions are rendered more
favourable, and the life of the fields will become correspondingly shorter ; this takes
mto no account the working of our southern low grade reefs, but only the Main Reef
series. Professor Becker's estimate, too, as well as Mr. Hamilton Smith's and Mr.
Schmeisser's, do not include the Klerksdorp, Potchefstroom, Heidelberg, Lydenburg, Peroentage of
Barberton nor other districts, which, according to the figures for 1896, contributed KJtoSjSe*!".
approximately 9 per cent, to the total gold production of the South African Republic. ^^»^****^"

The State Mming Engineer, in the course of the proceedings of this Commission, Num%r and cap-
has stated that there were 185 gold mining compcmies in 1896 in this Republic, with JSip^ie/^ta
a nominal capital of £54,000,000. Tianavaai.

On the Witwatersrand fields there have been about 5,500 stamps erected. The Number of
annual report of the Chamber of Mines shows that on an average 3,470 stamps were Jj^S'rirand
running auring 1896; consequently, it would appear as if 2,030 stamps had been ®®*^'
stopped ; but this is not really so, as many have been dismantled, and new ones have
replaced them. But it is a fact that there are on the fields many companies with a
la^ number of stamps that have suspended operations, and there are several others
which, during this year, will probably follow suit.

The Chamber of Mines* report shows that in 1896 there were fifty-six companies companies
in operation : while the statements from the Chamber of Mines and the Association of I^anS^now!
Hmes for March show that there are now only forty-seven companies with 3,275
stamps working. On the other hand, great energy is being shown by deep level
and other companies in pushing forward work with the ODJect of starting more Deep levels,
stamps, and it is estimatea that about 1,000 new stamps will start during the current
year, if conditions are favourable. I have gone to considerable pains to obtain as far
«8 possible the last annual report of all principal mining companies working in 1896,
ana which have been working continuously during the periods covered by their last
annual report, and te analyse these reports; the golci returns being according te
the sworn statements of their managers, and the accounts being in each case signed
by the auditers and secretaries. It should be noticed that, in dealing with these Analytical re-
twenty-nine companies, the period covered is not necessarily the year 1896 only, but TOmpaliieif****'
embraces the actual period covered by each individual report, and often this is for
part of 1895 and part of 1896, and in several cases includes periods longer than one
year. This table I consider most remarkable, in that it is compiled by a private
individual from published statements given freely te the world, and anybody can
make out the same table who obtains the same reports. In this connection I would
state that in discussing the matter of statistical information about these fields with
different eminent mining men from all parts of the world, the consensus of opinion is
that more generous and accurate information is given on these fields of the working
of the mines than is the case in any other part of the world. In addition to the
companies' reports, we have also the vast amount of accurate information collected
by the State Mining Engineer, the Chamber of Mines, and the individual enterprise
of C. S. Goldmann, so that the investing public should certainly be cognisant of all
vital facts here with such statistics before them ; and if they exaggerate the possi-
bilities of the mines, we have nothing to reproach ourselves with. At the same time,
it is regrettable that more publicity has not been given te the work of the State state Mining En-
Mining Engineer's Department as regards the statistics of the gold industry. The ^^"'^ "****'
Government should have been proud of this collection, and had it published in all
languages, and distributed te the world. They have, I think, been negligent in this

statifl-

Names <
panie

retun

Explam
uialyi
UuniB
compc

Juesof
lea.

ohair-

Band

ecting

treat-

work-
ts of
Beef,

OUfW,

d Su-
Xoblii.
rHer>
QeU
I>ee|v.

200

Mr. H. Jennings* Evidence.

The summary of this statement is as follows : —

• • •

Native labour

Native food

White labour, salaries, etc

K^oai ••• ••• ••• •••

Dynamite ... ... ... ...

Fuse and detonators...

Cyanide ... ... ... ...

#JI Hv» ... ... ••• •••

Mining timber
Timber, deals, etc. ...
5^tppl

Oils, grease, and paraffin

v^ancxies ... ... ... ••■

Ropes, steel and manilla

Electric spares

Mill spares, shoes, dies, cams, cam shafts,
stems, mortar boxes, screening, etc...

Trucks, wheels, and rails

Sundry stores : bar iron, bolts and nuts,
buildings, machinery, assay chemi-
cals, nigs and pipe Stmgs,eV ...

General cnarges : Insurance, licences and
rent, printing and advertising, sundries

JL o uais ... ... ...

OoiU
par ton.
i, d.

6 9-62

Pwomt.
or total oa.t

23-73

1 2-24

4-14

8 7-78

30-18

2 4-35

8-24

2 10-13

9-92

0 1-97

0-57

0 812

2-36

0 062

oia

0 2-98

0-87

0 4-05

1-18

0 4-21

1-22

0 3-73

1-oa

0 415

1-21

0 0-93

0-27

0 1-47

0-43

0 4-59

1-34

0 2-24

0-65.

2 0-73

719

1 5-99

5-23

28 7-90

10000

This again corresponds so closely with the statements made by the Chairm^
the recent Kand Mines Meeting, that I beg again to put this portion of his speec
evidence. It will be noticed that on this sheet I submit, each Company's Seen
has placed his signature as a voucher for the accuracy of the statementa

Percentage o f In support of thesc figures,'as being a criterion for the whole Rand, I beg to state

foUowmfiT statistics were compiled from the State Mining Ensfineer's report for 18J

working ooeti 1 1 • n ^
of the whole tlie lOllOWing
Rand, from

State Mining
Engineer's re*
port

White labour
E^ffir labour

vywtwi ••» •.* ••■ ...

Explosives, i,e., djmamite and gelatine...
Mining timber and sawn lumber
Cyanide ...

Meat, mealies and mealie meal (being for
the most part food for kaffirs)

^ L \/U ... ••• ... ...

Candles and parafEn

Toolq

^ VrV^AO ... ■*. ... ...

Stppl

K,xV>i/^A ••• ... ... ...

Mercury, zinc, and other chemicals
Caps, safety fuse, ropes, cement, etc. ...

ining Engineer's repori)f or '.

Per cent of

totidoort.

2,400,000

34-3

2,000,000

28-6

700,000

100

600,000

8-6

300,000

4-3

240,000

3-4

250,000

3-6

85,000

1-2

95,000

1-4

70,000

1-0

65,000

0-9

45,000

0-6

150,000

£7,000,000

100-0

Mr. H. Jennin^' Evidence.

201

This is seen not to correspond exactly with the statement I have given ; a simple
explanation of which is that the State statistics are for a different period and cover an
expenditure of £7.000,000, which includes the non-producing as well as the producing
mines, while the figures in my statement only cover an expenditure of £1,300,524.

I again wish to put in evidence the State Mining Engineer's figures regarding
wages paid on these fields to white labour, taken from the report of 1895, which

:8how :

Occupation.

<Shift bosses

Miners ...

Bock-drill machine men

Trammers

Engine drivers

Pumpmen

Stokers ...

Carpenters

Smiths ...

Mechanics and fitters

Bricklayers

Stonemasons

Daily labourers

Mine and store clerks

Amalgamators

Cyaniders

Concentrators

Tannermen

^Smelters ...

Various workmen

inaking an average of £23 7s. lOd. per man per month.

This amount is seen to be somewhat lower than that given by the manager of
tte Crown Reef in his evidence, which figured out at £24 Is. lOd., and which is, I
l^Iieve, representative of the five other companies dealt with in this statement, but I
^ould prefer to deal with this subject from the State statistics basis, and if there are
any errors in the statement as regards the Stat« Mining Engineer's Department, I beg
that he will correct them so that they can be put in this statement on their right
oasis.

I also wish to vitalize all these statements by more or less culling from the
history of the six companies I have given, and whose workings I am in a position to
state with accuracy, and to show how these yields and costs have been arrived at, and
how these whole fields compare with some of the yields and costs of gold mining in
^ther parts of the world.

We will take the Robinson Company as the typical rich mine, and follow a little of Early develop

ita history. It will be noticed from its publishea annual reports that it first figures SJSi.^

^ a gold producer in the year 1888, and that it commenced with 10 stamps, which

^ up to 1889 before being superseded by 40 new ones ; that the yield per ton for its

^ year's work was 272s. 7 04d., and that the working cost, which then only

included mining and milling, was 72s. l*04d. per ton ; that the extraction was 65 per

Average

Number.

monthly vmgt.

186

White wsffes in

1,430

1806.

956

226

765

129

1,058

638

900

213

149

287

291

217

472

8,168

£461

Average white

202

Mr. H. Jennings' Evidence.

capital

cent ; the machinery then erected was of a crude nature, and the mine
rather of a prospective than a permanent kind.

Go to any old prospector and ask him the method in which ha looks for go]
new region. He will tell you that he has no great geological knowledge, but t
knows gold when he sees it ; that he goes over the surface and wherever he &
outcrop he tries it with the pan. He goes over the whole extent of outcrop
open to him and naturally picks out the richest points at which to start worl
commences on a small scale and he works these rich parts, and as they giv

Srofit so he extends his operations. So started the Robinson, and so was the
eveloped.

The richest mines are started jSi*st, and the richest places in these min
selected for a start. It would have been folly to have done anything elsa
early stages there was no need of a highly trained engineer. In fact, a conscie
one would have told his principals that he had never seen any deposit like thi
he would have to be guided by actual disclosures in order to intelligently advise

With this digression let us return to the history of the Robinson (Company,
ipitoi of Eob- Robinson G. M. Co., Ltd. — ^The nominal capital of the Robinson was first £
iMonG.M.Oa jjj £i gharcs, of which £5,000 were working capital. This small original w<
capital was due to the insistance of the original owner of the ground. The o
owner was bought out after a time, and on January 24th, 1889, the capiti
increased from £50,000 to £53,375, in order to acouire six claims leased to third
before formation of (Company. This again was changed on Feburary 16th, 188
capitalisation of £2,750,000 in 550,000 £5 shares, to meet the public, who had pi
value of £60 or £70 upon the original £1 share. All of this capital was iss^
shareholders with the exception of 16,250 shares, held in reserve, the area of the
bearing ground being eqmvalent to 106 claims, which has since been increas
purchase to 136 claima

The financiers who controlled the workings of this mine realised the large cap
tion, and their endeavour has been to justify it by actual returns from, the mir
their success is demonstrated by the fact that, even on the present low market
of to-day, viz., £6 14a per share, the capitalisation of this company is held 1
shareholders at £3,685,000, and it is considered in Europe one of the Consols
industry. On this capitalisation the last year's profit shows 10*21 per cent.

Now, how was this brought about ? The 10-stamp mill was replaced in li
40 stamps ; the 40 were extended in 1891 to 60 ; the 60 extended m 1894 to *!
in 1895 the mill was further extended to 120 stampa

1896 Profit.
Stunpe.

Yield and work-
ing costs.

-^-^—fe wwv.

Working oott per ton.
Including depreciktion.
■. d.

Yield

per ton.

«. d..

1888 ... ... ... 72 1042

272 7-04

1889

65 11-846

182 7-24

1890

65 1-865

113 2-94

1891

52 5-575

103 5-63

1892

46 6-997

95 6-78

1893

42 1-097

101 0'02

1894

41 4-736

97 4-94

1896

• • 1

30 0-913

80 5-67

1896

> • • <

30 11-096

69 10-20

Beefs.

Mining was carried on in three reefs in this mine, known as the South ReeJ
Beef Leader, and the Middle Beef. The latter was afterwards discovered to be t
an overlap of the South Beef, and disappeared altogether at the third level.

Mn'H. Jennin^' Evidence. 203

The ore in the 3>p©r level, down to a depth of about 210 feet, was what is known Nature of ore.
as **free milling." The dip was 42 degrees, but has gradually flattened, until, at the
greatest depth, viz., 1,484 feet down on the incline, it is only 29 degrees. At a depth
of 210 feet the matrix of the conglomerate pebble formation changed from an oxidised
to a pyritic character, and the mining became somewhat more difficult and costly.

The difficulties in obtaining satisfactory results by simple plate amalgamation then
became neater, and one of the problems facing this company was to ^et an adequate
return of gold from the ore, as tailings leaving the mill averaged as high as 14 dwts.
per ton.

This company was the first on the Rand to successfully run frue vannera It ^pi^J^'"***®"
supplemented this work by the erection of a chlorination plant, which not only dealt
with its own concentrates, but also those of other companies ; and this chlorination
plant has produced gold to the value of over £860,000 since it started.

This company was also the first to introduce on a large working scale the cyanide Cyanide works,
procesa It replaced the first original works by larger ones, and has expended in cqn-
nection with this branch of the industry, over £40,000.

The treatment of slimes was also introduced on a large scale at this mine, and in siimestreatanent
eonnection with the Rand Central Ore Reduction Company, it has expended £60,000 to
£70,000 in this direction.

The total amount of money put into buildings, plant, ^om^^"

improved processes, etc., by this Company has
amounted to ... ... ... ... £426,736

Development ... ... ... ... ... 355,528

Making a total outlay of . . . ... ... ... £782,264

and the reserve ore in sight in the mine is 441,506 tons. Reaerveore.

firanted that a large proportion of this money was obtained from the ground, it
was put back into the groimd, and it aided all other companies in improving their
appliances, and in their own case has brought up the gold extraction from 65 per cent.
^ rich free milling rock to over 90 per cent, in the pyritic ore worked at the present
<i&y, and has thereby given encouragement and impetus to all mining on these fielda
In dealing with the metallurgy of the ores on the Rand, the ordinary process of
Dulling, concentration and chlorination, though adopted at this mine, did not prove as
Wcceasful as in other parts of the world, owing to the way in which the gold was
found in the rock, i,€,, in very minute particles ; and this great percentage has been
obtained by the initiation of a comparatively new system in metallurgy which has had
its growth and development on these fields, viz. : the treatment of tailings and slimes
by the cyanide process, and the Robinson Company was one of the early pioneers in Cyanide treat-
^ direction. It will be noticed that a remarkable decrease in costs has taken place Decnmsed work-
from the early stages of the mine to the present time. rJwiSSo.il

Milling and tramming costs have been reduced from 188. 8d. to 3a 8d. per ton ; ^^'
^ng costs 36s. 3d. to 17s., inclusive of development.

Cyanide costs started at 13s. 6d. per ton treated, including royalty, and were
'fiduced to 3a per ton treated last year. The total cost per ton on a milled basis was
'28. Id. in 1888, and is now 30s. lid., including two more metallurgical processes,
forking in harder ground, and all current capital expenditure as well as depreciation,
shoving a reduction in cost of 41a 2d. per ton.

hi comparing the cost of the Robinson with other mines, it must also be
'^embered that, although little sorting is done on the surface, a considerable quantity
o{ waste is eliminated below. These are indeed startling reductions, and, from an

204 Mr. H. Jennin^' Evidence.

engineer's point of view, I cannot see how the efficiency of this Company's works
be greatly increased.

oi^ijis ofBgb- The Board have used every endeavour to obtain men of acknowledged excellei
°' in their departments from all over the world.

The manager of the Alaska Treadwell, the working costs of which mine hav(
prominently figured before the public, was induced to take the management of 1
Company in 1892, and, though not alone, a great deal of the credit of the reductior
costs is due to his instrumentality and to his wonderful power of dealing with
employees of the Company. His motto among his officers was to impress them v
the idea that in each department they were to work as if the Company were tl
own ; and with great firmness he combined great kindness, and was loved as well
respected.

The work done at the Robinson has had its effect on other mines, and withor
Robinson mine you would not have a Heriot, and without a Heriot you would not h
a Geldenhuis Deep.

New Heriot ]sf ^^ Heriot. — The Heriot Company is an illustration of a not exceptionally h

grade mine starting with inadequate working capital, poor and meagre equipment, i
being obliged to suspend operations owing to the fact that it could not be made to ]
with the appliances and funds at the disposal of the Company.

^cfitoi!^ ""^ "^^ Company was formed in August, 1887, with a capital of £50,000 in £1 sha
the vendors receiving £4,000 as the price of the property, which consisted of twer
nine claims.

^"oSito.^^** ""^^ The battery commenced work in January, 1888 ; the initial yield after six mor

was valued at £2 16s. per ton, and the actual expenditure £1 19s. 8d.

incmaedcapitai rpj^^ Capital was increased in October, 1888, by issuing to shareholders 10;

shares at 30s., and three dividends of 5 per cent, were declared, but the Company ag
ran out of funds.

In December, 1889, the Board was authorised to increase the capital to £75,TO(
creating 15,000 new sharea But no tenders for these shares were received, and it '
not until April, 1890, that they could sell even at par the small amount of 1,000 sha
and these only on the condition that they were to be redeemable at 30s. within
months. In the following month 5,000 shares were allotted to an applicant for £7,i
Attempts were made to obtain loans, but these were fruitless owing to
restricted borrowing powers of the Directors, which were limited by the trust dee(
£3,000 ; and, moreover, the bank not only refused to sanction an overdraft bey
that amount, but expressed disapproval of the debt already incurred.

^and htotT^of During the year ending July, 1890, the mill of twenty-five stamps crus

New Heriot. 8,873 tons, yielding gold to the value of £3 Is. 4d. per ton, the working costs bt
52s. 6d. for mining and milling only.

During 1891 the mill practically stopped work. Early in 1892 the Xew Hei
Company was formed, the capital increased to £85,000, and the management i
finances put into strong hands.

The mine was developed and thoroughly equipped with the cardinal idea o
centralisation of power. Ihe cyanide process was introduced, and the new wo
were started towards the end of 1893. The total working costs in 1894 w
32s. lid.; in 1895,27s. 4d.; in 1896, 26s. lOd.; and the extraction brought up to a to
of 85 3 per cent.

This is now considered one of the model mines of the Rand, and the manager i
practical man who has grown up with the industry here.

'^and*d«SS**of '^'^^ capital was increased in 1895 to £115,000, in order to acquire more grou

N«w Heriot. and the total number of reef -bearing claims is now fifty.

Mr. H. Jennings' Evidence. 205

Henry Nourse G. M. Co., Ltd. — ^This Company was floated at Pretoria in ^Jp{*^JJ^***"
April, 1887, with a capital of £35,000, in £1 shares, of which 24,000 shares were HewyNouree.
given for the property, and 11,000 shares were issued against £11,426 5s., which
constituted the original working capital. This sum was soon exhausted, and a special
general meeting of shareholders was held in Pretoria on June 4, 1888, when the
capital was increased by 15,000 shares, which the Directors were instructed to issue
at not less than 30s. each. At the first annual meeeting of shareholders held on
August 14th, 1888, the Directors reported that owing to this limitation they had been
unable to dispose of these new issue shares, excepting 2,670 shares taken by Sandy-
croft's agent to settle an amount due to them and to pay for a new 15-stamp mill
Khich had been ordered. The balance sheet to June 30, 1888, shows that 1,642 ozs.
9 dwts. of gold had been won, so that the original 15-stamp battery must have
started about March of that year, but no record of the number of tons crushed
appears to have been kept. On June 30, 1888, the Company's cash was exhausted,
but there were on hand 12,330 out of the 15,000 reserve shares created in June, 1888.

At December 31st, 1888, the west shaft had been sunk to a depth of 103 feet, the
central to 16 feet, and the eastern to 39 feet. The report to that date states that
2,330 of the reserve shares had been disposed of at 31s. per share, and the balance of
10,000 at 56a, thus placing the Company in funds ; and that an order for a 15-8tamp
battery had been increased by 40 stamps, making 55 stamps in all, to make with the
15-8tamp mill then running a batteiy of 70 heada This battery was of too light a
pattern, and was never erected, but was disposed of as an opportunity occurred.

At December 3l8t, 1889, the Company's indebtedness had increased to £24,905
Hs. 9d., and at June 30, 1890, to £26,946 3s., and at a special general meeting of
fihareholders held on September 10, 1890, the capital, then £50,000, was increased by
the creation of 50,000 to £100,000. Of these 50,000 shares, 37,500 were ofiered to
shareholders at 308., but were not applied for. Eventually these shares were taken
Qp and came into strong hands.

The report of December 31, 1891, shows that it had been necessary to pledge the
^mpany's assets as security for an overdraft at the Standard Bank, and the above
•arrangement as to the issue of the reserve shares was the best the Directors were then
able to make.

At 30th June, 1892, the Company had paid off its liabilities and had a cash balance
"pf £25,000. By 31st December, 1892, the 15-stamp battery hitherto running was
increased by 20 stamps, and on 12th December, 1892, a cyanide plant was erected
Qear the old battery and commenced work.

During the next half-year five more stamps were added to the battery, and
extensive additions were made to the pumping and hauling equipment, and at 30th
J^ne, 1893, the Company was again in debt about £17,000.

The mine was, however, opening up well, and showing such good returns that a
special meeting held on the 7th March, 1894, sanctioned the increase of the capital to
^125,000 by the creation of 25,000 shares, which were taken up by shareholders and
guarantors at 40s. each. The capital thus raised, and profits accruing from mining
operations, were expended in the erection of a first-class plant on the basis of 60
•^naps. The total expense incurred in the equipment and buildings amounting in all Equipment

to £200,000. 6 « -kenxyNc

The total number of claims in this property is about eighty. ^di?iii*'f h°-

The debt that was incurred in connection with the equipment was not wiped off oNoune.

^Dtil the middle of 1896, and the fii*st dividend was 30 per cent, declared in December,

^896, and paid in February, 1897.

of
eniyNourae.

206

Mr. H. Jennings' Evidence.

^tiSl^of He***' ^^^ yield from this Company has been fairly uniform, and shows an average-

Nourae. extraction from the start to the present day of about 82 per cent.
^'o'Wng cortsof The costs have been reduced from their maximum of 56s. 3d., to the minimum,.
35s. 7d., shown in my table of working costs.

Even the present costs are high, owing to the small lateral extent of the property,
which has necessitated the working through three shafts/and also to the fact that for
the most part only one narrow reef has been worked, and 25 per cent, of the rock
hoisted from the mine sorted out ps waste ; the rock has also been exceptionally hard.
The small dip area for the major extent of the mine is due to the fact that, on starting,,
the conglomerate beds showed a declination of about 80 degrees, which would allow
mining to be conducted at considerable depth before reaching the southern boundary.
The beds, however, within a horizontal distance of 240 feet have gradually
changed their dip to 46 and 50 degrees, thus permitting the deep level company to-
commence mining operations at a comparatively shallow depth.

*Sty'Sd°s2. City and Suburban G. M. Co. — This Company was formed in 1887 with a
burban Com- ^»3^pj|.g^j ^f £50,000 in £1 sharcs, of which the vendors received £30,000, and then

certain other interests were acquired, reducing the working capital from £20,000 to-

£8,900.

The capital was increased in

1888 by 1,000 shares, realising

1889 by 5,000

1892 by 10,000

1893 by 10,000

))

«>

£15,548
62,950
65,000
86,250

Number
cUtima.

Receipts.

■^roflto.

Equipment.

Oyanide works.

So that the total working capital subscribed amounted to £238,648

It must also be added that in 1895 the capital, which then stood at £85,000 in
shares, was transformed into 340,000 shares of £4 each.

The mining area of the Company is 150 claims (about), of which about 20 clainL^s
have been worked out up to end of 1896, including poor ground and pillars. TIl^
total tonnage crushed up to this period is 670,463 tons, and the gold bullion recoverfe<5[
from same, 428,794 ounces.

The total cash receipts from all sources have been ... ... £1,838,4S4

and the total cash expenditure on property, development, equipment and

working expenses to end of 1896 ... ... ... ... ... 1,559,695

leaving a profit of ... £278,7 89-

out of which £251,661 has been paid in dividends to shareholders, and the balance of
£27,128 is represented by cash, stores on hand, etc.

The equipment of the mine, the cost of which stands at £524,110, includes the
development of ore reserves, amounting to 375,895 tons.

The first 10-stamp mill started crushing in August 1887, to which was added
another 10 stamps in June, 1888. In May, 1891, a new 30-stamp mill was started, to*
which was addea the first 20 stamps two months later. This 50-stamp mill worked
on till November, 1895, when it was finally closed down, having been replaced by aiv
improved plant of about 80 stamps started in July, 1894 ; 40 stamps were add^ to-
the latter m July, 1895, and in September following a further 40 stamps, making up-
160 stamps at the new mill. The full plant, however, was not worked until July^
1896, owing to inadequate supplies of native labour.

Cyanide works were started in 1893 to treat the product of the 50-stamp mill ancJ-
the accumulation of tailings prior to that date. In July, 1894, a new cyanide direct^^

Mr. H. Jennings' Evidence. 207

filling plant in connection with the new milling plant was started, which has since
been extended for the treatment of coarse sands and concentrates, and double treatment
has been adopted.

As no systematic samples of the ore were recorded prior to 1892, figures are not '"^JJ^J^n J^^
at hand to supply the percentage of recovery previous to that year. In 1892 the
recovery by amalgamation only was 59*596 per cent, of the value of the ore crushed,
which has been raised to 81*95 per cent, for 1896 by mill and cyanide, showing that
with improved methods the extraction has been increased by 22*36 per cent.

It will also be noted that the working expenses have been reduced from 60s. 4'56d. ^"^^48^?*"*^'
per ton in 1887 to 26s. 3*91d. per ton in 1896, due to the improved method and
appliances of mining and milling, and ore treatment, and working on a large scale,
thus now making it possible to work profitably lower grade ore than formerly.

Crown Reef. — Taking this company next, which in early days was considered
only a low grade mine, though having two very regular reefs running through it with
an average stoping width of 4ft. each.

. Its history can be summarised as follows : — h^o^ of Grown

This company was formed on the 1st April, 1888, to acquire the lease of a
mijnpacht on the farm Langlaagte from a private syndicate. It had an issued share
capital of £100,000, in £1 shares, of which amount £14,000 was working capital.
The share capital of the company was increased to £106,000, in 1890 ; to £110,000 in
1892; and £120,000 in the latter half of 1892; the profit from the sale of shares
bemg utilised to equip the property.

The milling power of the company was 30 stamps at the start. This was Equipment,
increased by a new mill of 40 stamps in 1890. To this mill a further 20 stamps was
added in 1892. These two mills were replaced by a new mill of 120 stamps, with
complete cyanide works in 1894, and slimes plant in 1896.

Up to March 31st, 1895, the company had expended on capital account, buildings, oapiui expendi-
Baachinery, and plant, dams and reservoirs, etc. . . . £308,963 0 9 *""'

Purchase of freehold rights ... ... 26,009 0 0

Sinking main shafts and driving main cross cuts ... 62,521 7 3

£397,484 8 0
Besides this, mine development, charged to working

expenditure, cost ... ... ... 58,850 16 9

£456,335 4 9

Since that time all expenditure has been charged against revenue accoimt, and Revenue and ox
^pital account has ceased entirely. During the two years ending 31st March, the p*"*^*"'**
company has expended for : —

Sinking main shafts and driving cross-cuts ... £21,618 9 2

Mine development ... ... ... 64,674 10 10

Buildings and additions to plant ... ... 6,433 18 0

£92,726 18 0
Amount brought down from above ... ... 456,335 4 9

Making a total of ... ... ... £549,162 2 9

The amount expended on development and sinking main shafts brought 1,495,650 Reserve ore.
^ of ore in sight, of which 442,859 tons are in reserve ready for stoping.

208 Mr. H. Jennings' Evidence.

Jng^Mwd ex- The company originally recovered only 57 per cent, of the value of gold in the

ore, this value being arrived at by the addition of the assay value of the residues to
the total gold recovered.

This percentage has been increased gradually up to 86 per cent., which is the
extraction for the last half of the financial year ending March 31st, 1897, when a
slimes plant was added to the already existing equipment of mill, cyanide, and con-
centrating plants.

Working costs. The compauy first got its rock from open trenches which was a cheap method for

a time. During the second year of its existence it started actual underground work.
The total costs, exclusive of capital expenditure foi> that year, averaged £1 13s. 7d,
Last year with the additional cost of three separate secondary treatments, the costs,
inclusive of capital expenditure, were £1 8s. 5d. Although the mining costs have
shown no great reduction, the milling costs have been reduced from lis. in 1890, to 3a
in 1896. The position of the property in 1890 was most exhaustively dealt with in a
report by myself, which deals fully with the difliculties and imperfections of gold
recovery on these fielda

Yield. Leaving out of account the first year of the Company's returns, which Was

abnormal, the yield per ton has been fairly constant, though slightly increasing during
the last two years, and varies from £1 15s. 6d. during the second year to £2 78. 2d. for
the last financial year.

^5!!hUnhu?8 ^^^ Geldenhuis Deep, Ltd. — This Company was formed in January, 1893, witk

Deep. a capital of £350,000 in £1 shares. The vendors received 175,000 shares, while 90,000

shares were issued for working capital, realising £94,500, and 85,000 shares were kept>
in reserve.

^cuSJs.*' ^' ^^® property consisted of 212 claims, and work was commenced at once.

Debenture issue. In 1894, it was found advisable to issue debentures to the amount of £160,000,

Cost of equip- and in 1895 15,000 out of 85,000 reserve shares were sold, realising £103,474 15s., acLcJ
ment. further sums were gradually borrowed to complete the development and equipment, on

which, altogether, about £410,000 will be spent. This is the cost of putting the mio6
on a paying basis, and, after all the experience gained in former years there can be no
doubt that the works here, as well as at other subsidiary companies of the Rand mines,
are of an extremely high order. The mistakes of early days have been avoided as far
as possible, and every effort has been made to introduce the latest improvements.

Initial yield. The mill started crushing towards the end of 1895, and the early results were poor

and unsatisfactory. During the last three months of that year the yield was only
18s. 2d. per ton, while the costs were 26s.

Increased yield. In 1896, the yield was raised to an average of 27s. 4d., with working costs of 25a,

while for April of the current year, the working costs, including sorting, were
26s. 5d. per ton, the yield 37s. 3d., and the monthly profit, £9,018.

Rand Mines. The Geldcnhuis Deep is only one of the subsidiary companies of the Rand Mines,

Ltd., which, as shown by the last Annual Report, has seven other important companies
already in course of development and equipment, and expects to require £3,630,065 to
put them on their initial running basis of 710 stamps, with the intention of eventually
increasing them to 1,300.

The total nominal capital of the eight companies is £3,607,391, a sum almost*
identical with the amount of cash estimated to put them on an earning basis.

I trust that I have not wearied you with all the details I have given yo*^
concerning the history of these mines; I have laid everything so fully before you \t>
order to show you what has been the work of one group of capitalists on these field^-
I do not for a moment wish to imply that our firm has been the only one to achiev"^

Mr. H. Jennings' Evidence. 209

brilliant success, as you have been already, or will be, informed by the representatives
of the other houses regarding the good work done by them.

You will have seen from the struggling history of many of these companies, that comH^riron of
after the early boom of 1889, there was a most serious depression, during which all the f^KTwid in
mines suffered, but it was^during this very depression that the foundations were laid, ^^^•
by means of hard, earnest and intelligent work, of the revival which followed in the
year 1895. We now again are experiencing a period of the most acute depression after
the recent boom, but there is an enormous difference (which I cannot too strongly
impress upon you) between the position and hopes of the industry at the present
moment, and during the preceding relapse. In 1890 the industry was still young, it
was undeveloped, and there was, as I have endeavoured tx) show, immense scope for
improving mining results, both as regards working costs and extraction of the gold.

Now, in 189y, the class of machinery on these fields can be considered the most
perfect of any gold fields in the world; the various processes dealing with the
extraction of gold are rapidly approaching practical perfection, and our working costs Government co-
have been decreased until we can scarcely reduce them further without the Govern- nSs^^J^- \o
ment's help ; with this help however, we can still make great reductions. [22^18!^°'*^

I have tried, and I cannot too earnestly try, to impress upon you that the very proflu put back
men who in the early days obtained their profits from rich mines like the Robinson *°^ ™*"**
and Ferreira, freely put back this money into other mines, like the City and Suburban,
the Henry Nourse, and the New Heriot, then struggling under the greatest difficulties,
and after reaping the fruit of their energy and intelligence here, again turned their
resources to gigantic enterprises like the Rand Mines.

Before pursuing further the investigations of these fields, I desire in a way to
compare the yield, cost, etc., shown in the foregoing statements, with those of other
gold mines in the world.

It must be remembered that to make comparisons applicable, the conditions under workintr condi-
which work is carried on must be taken into account. Even comparing the twenty- cnt'^mfncs!**'^
mne different mines in the foregoing list, it will be found that different conditions exist.
Some companies sort their ore, and others do not ; some work only one reef, others two or
three, varying in thickness, hardness, etc. ; it is obviously unfair, for instance, to com-
pare the costs of a company exploiting, for the most part, only one thin reef, and
fiorting out 40 per cent, of its rock, with a company which is not sorting and working
two reefs averaging ten or twelve feet in thickness. The scale on which work is
conducted must also be taken into consideration, and it is presumable that companies
^th large stamping power should have an advantage in working costs over those of
Bttnch smaller power, and companies who are treating ore by two or three secondary
ptocesses should be under a disadvantage when comparing costs with those employing
only one or two. It will be noticed that the average stamping power of the twenty-
Jiine companies is about eighty-five stamps per company.

I will commence with the Alaska Treadwell Mine, the annual report of which
company for 1896 I beg to put in evidenca

Prom this report the operating costs are seen to be as follows : —

210

Mr. H. Jennings' Evidence.

Working costs of
Alaska Tread-
well G. M. Co.

Operating costs on 263,670 tons (all construction charged directly to operatii

Mining
Milling ...

Chloriiation

General Expenses (Douglas Island)

„ „ (San Francisco)

London Office Expense
Bullion Charges, Freight, Insurance, &a

Total operating costs
Net profit for year

Total Yield
The Wages paid were as follows : —

DoUanper

Shillings per

ton of ore.

•5491

2-29

•3476

145

•1138

0-47

•0819

0-34

•0218

009

•0112

005

•0372

015

11632
1-8862

4-85
7^86

30494 1271

Per diem. Per diem.

2-50
200

2-50

300
200

8 4

10 5

12 6

Miners, with board and lodging

Labourers „ „

Drillmen, with bonuses and board and lodging

(Summer)
Drillmen, with bonuses and board and lodging

(Winter) ... ... ....

Indians (paid daily

MiLLMEN.

Dollars per month.

Concentrators, with board and

lodging ... ... 6500 to 10000 £13 10 0 to £20 16 8

Feedei-s „ „ 7000 to 10000 14 11 8 to 20 16 8

Amalgamators „ „ 90*00 to 100*00 18 15 0 to 20 16 8

Chloeination Works.

Per diem.

Boasters, with board and lodging 2*50
Roasters (helpers) „ 2*00

Floormen „ 200 and 2*25

Per diem.
«. d. s.

10 5
6 4
8 4 and 9

Per diem.

8 4 to 25 0
16 8
8 4

Machine Shop,

Per diem.

Mechanics, with board and lodging 2*00 to 6*00
Blacksmiths „ 4*00

Blacksmiths' helpers „ 2*00

Favourable The Alaska Tread wcU Company, however, is situated on an island with a

ditionSof AiM^ liarbour. The mill is near the ocean, with the tailings running into the water, ai
o*M^S!f^*" worked by water power for the greater part of the year ; the lode varies in thick
from 50 feet to 426 feet, and the mining is more or less quarry work. The nui
of stamps is 240. The mine is most favourably situated for obtaining supplies at
rates, as is shown by detailed account, which I beg the Commission will compare
the rates of similar supplies on these fields, especially dynamite.

The following table is roughly made out to show the relative prices paid
stores at the Alaska Treadwell mine and at the Crown Beef here for 1896, on
I)a8i8 of the amount used at the former mine : —

Mr. H. Jennings* Evidence.

211

ABTICLX.

AMOUNT USED.

AUaKA PBICI

CROWN SEBF FBICK. OompanUve ta-
ble of price*

Dynamite

Fuse

200,089 Iba
14,314 coils.

5,134 11
474 5

2
0

17,354 12
268 7

a Crow-n Reef
^ and Alaaka

Treadwell 0.

M. Co*.

Caps ...

75,182

168 5

150 8

Timber

14,909 cubic ft.

482 0

3,168 2

Steel,Miniiig

25,519 lbs.

429 16

637 18

Oils

6,545 gallon&

428 3

1,309 0

Candles

272 boxes

177 15

145 0

Mortars

96 0

304 0

Hortar Liners

58,058 Iba

756 12

1,209 10

Cam Shafts

59 4

52 10

truideBlocks

120 pair

22 16

856 0

Shoes and Dies

151,922 lbs.

2,178 17

2,278 16

Screens

1,300 sq. feet

109 6

97 10

Heads

49 16

78 0

Sulphuric Acid

328,000 Iba

1,000 0

4,100 0

Salt

455 tons

790 8

2.733 0

Barlron

63,503 Iba

275 9

529 3

1,461 Iba

18 4

52 11

12,651 10

35,324 10

If the same proportion exists for the balance of the stores used by the Alaska Cost of total
^f^well which are not classified above, and which amount to further £3,500 S^uMaTAUM?
^usive of coal, these total stores costing £16,100 in Alaska on the above basis of ©* m.^oo*'^'
piees, here amoimt to about £45,100, thus increasing their costs by £29,000, and the
^1 cost per ton at the Alaska Treadwell Mine by 2a 2d. on the tonnage milled :
J6M70tona

On the other hand, if the Crown Reef Company had been able to obtain its stores cost of total
^•rtyear at the above prices ruling in Alaska, their supplies, exclusive of coal, which STue? ^
•*jaUy cost tiiem £85,100, would only have cost £30,500, which would be a saying oy^SLOo.****
^ £54»600« or no less than 5a 6d. per ton, on their tonnage of 198,236 tona

212

Mr. H. Jennin^' Evidence.

AI.A8KA TBKADWKLL.

Tons crushed ...

Pounds of Dynamite used per ton crushed
Tons mined and milled, secondary treatment and
general expenses per man per day

1 dol. = 48.
263,670
0-76

414

Comparative
working coets
of Alaska

Cbowk Rmcr.

AraaxA Trkarvmll,
1 dollar — to.

Treadwell and

Crown Reef
G. M. Coe.

Cost per

Per cent.

Cost per

Per cent

ton

of total

ton

of total

MiUed.

cost.

Milled.

coet.

£ 8. d.

£ B. d>

Labour, total white and black, including food...

0 15 6

57-98

0 2 11

63-78.

v^oai ••• ... ... ... •••

0 2 7

9-79

0 0 5

8-57

Dynamite

0 2 5

911

0 0 5

8-37

Cyanide Zinc and Royalty.

0 18

6-35

Timber...

0 0 5

1-55

r 0-79<

Steel, Mining

0 0 4

1-32

0-72

Oils

0 0 3

0-87

0 0 1

1 0-92.

Candles...

0 0 4

1-20

o-2a

Mill Spares

0 0 5

1-52

0 0 4

6-54.

Fase and Detonators

0 0 2

0-57

f 1-02.

Trucks, Wheels, and Rails ,

0 0 2

0-69

0 0 1

\ 0-01

Pipes and Pipe fittings

0 0 1

0-36

[ 0-50>

Sundry Stores, General Expenses \
Electric Light and Drill Spares J '"

0 2 4

8-79

0 0 2

3-46

Chlorination Supplies

0 0 3

5-09

Total cost per ton ...

16 8

100%

0 4 8

100%

WorkiDflrcoEtBof

This shows that the relative proportion of cost for labour at the Alaska Treadwell
is somewhat higher on a percentage basis than at the Crown Reef, and also that the
great lowness of cost is, in addition to the cheapness of supplies, due to the fact that
the tons mined and milled per man per day are in a ratio of thirteen to one at the
Crown Reef,
oritmecowe or The next Comparison of cost I wish to make is that of the Dead wood Terra Gold
Deaawood Mining Company, Dakota, U.S. A., given me by the manager of the Geldenhuis Deep,.
' * °' who, previously to coming Out here, was manager of this property. It was on account
of the remarkably low costs ruling there that we were induced to obtain his services^
here on the Rand.

The total Mining costs of this company in 1895 are shown to be 1'37 dollart^
made up of : —

Mining ... ... ... ... 88539 cents = 3a 8d.

Milling ... ... ... ... 48-861 cents = 2s.

The yield of the ore being 1*74 dollars— 7s. 3d. per ton.

Yield of Dead-
wood Terra G.
M. Co.

Mr. H. Jennings* Evidence. 213

If it interests you, further particulars can be obtained from the mana^rer of the
Geldenhuis Deep. He informed me that the width of the lode varied trom 25 to
75 feet, the deepest shaft was 600 feet and no secondary treatment was used. The
fuel wafi coal obtained by rail, and ruling rates of wages were as follows : —

MiTJiHANDS.

Enpneer

• • •

2 at 3-00 per

shift of 12 hours.

Wages at the

Foreman

• • •

2 „ 2-60 „

}}

Deadwood
Terra O.IL Go.

Foreman helper

• • •

1 „ 2-00 „

Amalgamators

• • •

2 ., 3-50 „

Amalgamators

• • •

4 „ 300 „

Feeders

• • •

2 ., 2-50 „

Oilers

• • •

2 „ 2-50 „

Cai-penters

• • •

1 „ 3-50 „

Carpenter helpers

• • •

1 „ 2-50 „

Miners in Deadwood Terra mine received 3*00 per shift of 10 hours and shovellers
2'50.

In the Homestake and Highland mines and mills all of this labour is paid 50c. wages at Home-

„-,!.£, " * Stake and

per Bhiit more. Highland

The Deadwood Terra mine ran 160 stamps. Siui.**

Regarding the gold mines of California the total costs in some of the principal workinffoostsof
mines vary from 10s. to 38s. per ton, depending on local conditions. ^w raSuS.**"

Mr. Leggett, a more recent arrival than myself, can give you fuller particulara

The next comparison of cost I wish to put in evidence is taken from MiTteral
Jiidmtry, page 312, in which it states : —

''Mount Morgan Mine reports for 1895, the cost of working last year was almost workingoostsot
12dollarsaton." JStoT^^'*^

Mine Iriduatry, 1895, B&me page: — ''Mysore Company in India treated 60,654 worungoostsot
tons, and cyanided half the tailings; cost, 9*50 dollars per ton." Mineral Industry, "^ywreco.
1895, page 319 : — " Milling in four districts in U.S.A. is averaged by P. A. Richards as
nnder: —

Black Hills ... ... ... 70 cents a ton. Muiing costs in

^•1 • >7e some mines of

ijrlipui ... ... ... ... /O „ „ the United

Grass Valley ... ... ... 80 „ „ »*•**»•

Amador ... ... ... ... 46 „ „ (soft ore)."

Taking the average of the first three districts, we get 75 cents a ton, or 3s. This
^practically the same as the Crown Reef cost for the past two years, including stone
crushing.

From this it is seen that the average cost of milling in the Black Hills, Dakota, Avevage miiunff
yjrf the GUpin Country, Colorado, and Grass Valley and Amador Coimtry, California, state? ^*^
^2& lOd. per ton, and the mining cost is not given, but varies with local conditions
^ the width of the lodea

' El Callao. — The next comparison is a table of results showing the genera moaiiaomine.
^^perations of the El Callao Company from its formation up to June, 1894.

Work was first started in 1870 on a small scale, and by people who had no ''^^^*^
Previous experience in mining. The yield per ton is seen to have varied from 5*66
^ in 1884 to 0*6 ozs. in 1892, the average for the whole period being 2*03 ozs., or
1558. per ton.

214

Mr. H. Jenning;8* Evidence.

••g

•

1
8.

•

■g

■s

_ B

'a ^ « O
:3 Br^ fa

ns2 o g

^ find 45

^i !^ S 9

3CJ« a

O t< toM 00 ^

<1 g ^ g

«M P S »

^ a 8 a

CO Mt
CO "^

8 2

1^ r*

Md CO

01 O

s s

©f

O) CO

O -4 00

•^ ^ 00

'$§SSSSSSSS^9S

o>o>ooooia»'H^oao

iO<^^.-40|iO^01C0t»^

o^oooo^^oooooocoeo
:AO«^r«r«cocoaoiococo

t»^a»oa»>oooooeo
to

'SS99S^9SS%9

00 00 r^ r»

CO r* CD 00 01

g 9 9 S IS

S 8 I

^ t» kO

01 ^ »

S eS § ^ & S S
5 Q 00 CO 0) 00 oo

^ ^ ^ .-4 ^ .-4

CO'^100101-40000000

<^ ^ t» t»

{: S S 9

»iM ^^ ^M

Seo^Q09U3aQa»t»^coior«

3^&SSiio)3S&sSSS

s s s

S 9 la

tS CO

00 CO 00 00

^ 00

^ eo

5
S

O u

2 S

8d« 0> w^ 0>
00 00 00 00

Mr. H. Jennings' Evidence. 216

The working expenses varied from 149s. 2d. per ton, which was the average for worUng expen*
the first 13 years, to the minimum of 39a 9d. in 1891, the total average being 53a 8d. ****
for the whole period.

The total gross yield from this mine is shown at £5,457,432, while the dividends ^*1^^ *^'
declared have only amounted to £1,940,478, in spite of the phenomenal richness of the
ore. This, with the exception of the Mount Morgan mine, can be considered to have
been at one time the richest gold mine in the world.

The success of this mine induced capital to be invested freely in other lodes, which, laiwd suoc«8i
however, were not of the same richness, though in many cases of as high a grade as quent*ihaian
that ruling on these fields, and 31 companies were started, which erected 758 stampa JJinf* ^^'•"^
At the present time the industry is almost dead ; there are only ten stamps running on
these fields, and these are working without a profit, and the celebrated £1 Callao mine
has just closed down in debt to the extent of 150,000 doUara Let us now enquire into
the above high costs and final languishing of the fielda In the early history the
discoverers worked on a very small scale with very little experience, and their immense
costs are not to be wondered at considering the ^neral political and climatic
conditions. The Callao mine is situated about 150 miles south of the Orinoco River,
in a latitude of about 7 degrees north of the equator, without railway communication,
and with very bad roads, and in its early history was considered most unhealthy, so
that high wages had to be ofiered to induce skilled men to come to the property.

In 1884 a new regiTne was started, and high grade machinery with increased ^^5**!**^^^^
•stamping power, and high grade men put to work, me Company giving them a free mftchineiy.
hand and every encouragement to do their best, and expenses were lowered in eig^ht ^J^**",^*'**^
years from £6 2a 3d. to £1 19a 9d. per ton. The cardinal feature in this reduction was on' m^oaiiM
tile improvement in machinery and mining methods, but another was the encourage- *^"®*
ment of negro labour obtained from the West Indian Islanda At first this class of ^•s^ '•**^'-
labour was considered hopelessly incompetent, but by patient training an(^ judicious
graduation of wages in proportion to work done, it was finally possible io run the mine
with 11 J per cent, of the white men originally required, and the blacks were better
able to stand the climate. The Government of Venezuela, which was not in sympathy
^th the alien mining population, believed in high and onerous tariffs, monopolies and
concessions, and did very little to foster the inmistry, in fact tried in every way to
extort as much as possible out of it. The present unfortunate condition of the mining
industry there, is I think, in no small measure due to the attitude of the Government.
The ruling rates of wages during late years, when good work has been done, are : — wwte and buud

wasm of E

White, average per month ... ... ... ... £35 caUaomine.

(This does not include the Superintendent).
Blacks, per day ... ... ... ... ... 6s. 6d.

I would state in this connection that Mr. H. C. Perkins, late general manager of
Rand Mines, initiated in 1884 the better working and equipment of this mine. I
^cceeded him as superintendent in the latter part of 1887, and remained until the
Diiddle of of 1889. Mr. Webber, now general manager of the Band Mines, succeeded
Hand remained until he came here in 1891, and he in turn was succeeded by Mr.
Searle, now manager of the Crown Deep, who remained until 1896. Mr. Searle, the
|no8t recent arrival from El Callao, will be best able to give you further details regard-
^g the working of the mines and the Government of the country, should you desire
them. Although now out of date as a treatise on the comparison of working costs, I
^ish to.put in evidence an interesting little pamphlet published in 1886 by Mr. Hamilton
Smith, who deals with the relative costs in the United States and Venezuela gold fields,
*^ gives the relative conditions under which work is accomplished.

216

Mr. If. Jennings* Evidence.

The table herewith which I incorporate in my statement^ jpLves the sabetanoe of
the comparisons, and is as follows : —

Belativeiperldiig
oosto of United
States and
Veg«ielagald ^^^^

Period.

Averaee

No. of

Stamps.

1 Tons
crushed in
one year.

Averam
No.of Ani

crashed

by each
stamp per

month.

Costs of

milling

per toD.

in
dollan.

Total
costs.

per ton
in

doUan.

Costs of
milling
pel ton
m shil-
lings.

Total cost,
per toA

in
shillings..

Sierra Battes ...

1885

76i

54,493

•66

fr83

2-83

24-25

Plnmas Eureka...

1886

55,973

•61

6-57

2:64

2317

Homestake

1882-3

200

170,074

117

4-03

4^87

16-76.

i> •••

1883-4

200

191,505

121

419

5-03

1743.

II ...

1884-5

200

213,190

1-01

3-25

4-20

13^52:

Father De Smet

1883

100

104,100

—

2.-49

—

1036.

» i>

1885

100

106,855

—

212

—

882

Caledonia

1885-6

^^^

48,848

—

•88

2-95

8-66

12-2r

ElCallao

1882

22,405

1119

45-34

46-55

188^61

1, •• •

1883

24,750

—

44-33

—

1844L

1, ...

1884

30,936

7-25

36-17

30-16

14631

1, ...

1885

47,223

4-98

21-96

20-72

91-35

„ new mill -j

May,
1886

ab't3

fab'tl
16 J

12-60

62-60'

New Potosi

11 m'ths
1884

}25i

7,456

—

46-96

195-35

I reeret that I cannot put in more details of the working costs in other countries-
compared with the elaborate details given by me for these fields, although I have gone
to considerable trouble to obtain further figures, but this i» in accordance with the
statement already made by me that information is more generously given here than^
in any other mining district in the world.
MijiinK costs on From the figures, however, that I have given it is evident that our average cost

of Ss. 8d. for milling (some companies running under 3a) compares most favourably
with the milling costs of other mines in the world, working under similar conditions^
and speaks eloquently for the excellence of our machinery and mill organisation.

Rand.

. Mr. If. Jennings' Evidence. 217

irhen the high price of labour and supplies is taken into consideration, and when we
have to conserve and pump our mill water. These milling costs can still further be
reduced, but only in items of labour. and supplies. To show the improvement in
milling on the Band since 1890, 1 would state that I had cause to examine a mill of 100
stamps in that year, at which the milling costs were 10s. 2^d. per ton, not including cost of
shoes and dies, the number of white men employed bein^29,and the number of black 188.
The number of men employed to-day at the Geldenhuis Deep mill (155 stamps) is
4iibout 20 white and about 20 black, including engine-men.

Cyanide costs of these fields are not comparable with any others at my disposal, OTanideoottoon
but may safely be assumed to be the lowest in the world The main costs are ^**^'
seen to be in mining, including mine development, the average amounting for the 29 Development
companies to 17s. 71 2d. per ton. This is abnormally high, and is the department in *^*"**°^*™*
^hich our principal future reduction is to be made. This department has little to
expect from improved machinery, and the main hope of reduction lies in increasing
the efficiency of labour or decreasing its wage, or both, and also in decreasing the cost
of all supplies, especially dynamite and coal.

Before leaving this subject I wish to state that a mere reduction in working costs sottfag.
is not the only thing to be aimed at, as I believe there is still considerable scope for
raising the yield by extending and improving the system of sorting in vogue at some
of the mines, and mining undergrouna a minimum amount of waste. In this way an
apparently higher cost per ton on the basis of the tonnage milled miffht be shown
"While actually cheaper work was being done, but larger profits would result. Mr.
Johns, who is the pioneer of this system on these fields, can give you better informa-
tion than I, though I also have been, and am introducing it at aU the mines with which I
^ connected. I roughly estimate that now, for the 29 principal mines, not over 8
per cent of the ore is sorted, and I think in time this figure will be more than
•doubled. The only further improvement I see possible from an engineering point of
^ew, is the introduction of slimes treatment throughout the mines.

This will be an expensive matter with the freight rates, etc., ruling here, and will
probably cost for plant approximately between £120 and £200 per sSimp, according
to the size of the mill. The increase of yield and profit will depend on the grade of
tke slimes leaving the mill, which varies in the case of every mine, and in some cases
^y not warrant the expenditure of erecting such a plant.

I have included in this portion of my statement an immense amount of figures
which have been compiled with great care, but owing to the short space of time
which I have had at my disposal m drawing this up, it is possible that a few small
errors may have occurred, and if so I hope I shall be informed of the fact by the
gentlemen on the Commission, as I do not wish a few possible clerical errors to vitiate
*^y of the arguments I am advancing.

I have ah^eady explained that the engineer is about at the end of his tether as
^^gards further improvements under present conditions.

From the analysis of working costs on labour and supply basis, it is evident that
Wwiir is the most vital point of all, and the point towards which our chief attention
^^ be directed.

, The summary of my statement for six companies shows that labour figures on a ooet of ubour.
**®8 of total costs per ton as follows : —

White labour ... ... 8a 7-78d. per ton. 3018 per cent.

Black „ 6s. 9-62d. „ 23-73 „

Kaflirfood ... ... la 2-24<i. „ 414 „

16a 7'64d. per ton. 68*05 per cent

218 Mr. H. Jennings' Evidence.

cort of labour in The State Mining Engineer for the year 1896 gives

White labour at ... ... ... 34'8 per cent

Black „ ... ... ... 28*6 „

62'9 per cent.

Percentage of Taking the mean of these two estimates, we have, roughly speaking, 60 per cent:.

oSr^woSinff ^^ our working cost appearing under the item of labour.

PropSaon of Now, what have we to Face in our labour problem ? It is, first, that our labour

white" and is accomplished in the proportion of, roughly, 1 white man to 8 or 10 black. Some of

black labour, ^j^^ white labour is the best that money can command, and is culled from all over the;

world. It is very highly paid when compared to labour in old-established countries.

where climatic and general conditions are favourable, but when compared to new

fields, to which men only go for high wages, it is not excessive, as shpwn by the^

statement made by Mr. Seymour with regard to the price of labour in Nevada,.

Montana, and British Columbia, and also by the figures 1 have myself already given.

of wages in other districts.

I now give a tabulated statement showing the average daily wages paid to the
employees in the older mining districts of various countries : —

Countiy, Mines. Average, Surface. Average, Underground. Beference.

'•^SSSiS'lSiS! Belgium, Coal 2s. 3-8d. to 2s. ll-7d. Engg., v. 20., 1888-9-90»

^^ Bilbao, Spain, Iron Is. 6d. to 2s. 6d. 28. 6d. to 3s. 4d. Engg., v. 44, p. 271

Durham, Eng. Coal 2s. 6d. 3s. 8d. Engg., v. 53, p. 413

France, Coal 2s. 4d. to 2s. lOJd. 3s. IJd. to 3s. lid. Engg., v. 53, p. 413

Germany, Coal 2s. 2d. to 3s. Od. 2s. 4d. to 3s. 3d. Engg., v. 53, p. 413

Hungary, Coal Os. lOd. to la 2d. 2a Od. to 2a 6d. Engg., v. 54, p. 179

United States :

California, Gold 4a Od. to 8s. Od. 10a Od. to 12s. Od. Approximation.

Georgia, Coal 3a lOd. to 4a Od. 6a Od. Engg., v. 52, p. 582

Pennsylvania, Coal 4a 9d. 5a Od. Engg., v. 53, p. 413

Note. — In Hungary and Spain the number of hours per week isy in summer, a»
high as 72 ; while in the other named countries the hours vary from 54 to 66. I&
the American coal mines, the average number of days worked in 1894 was only 210^
but wages are based on the actual weekly payments, divided by six.

^^wmSS"^^ ^«™; Mr. Goldmann's statement regarding 3,620 miners on the fifty-three companies,.

§2^y "* Witwatersrand goldfields, is food for serious reflection, showing that 54 per cent, of

the men are single, 33 per cent, are married, with their famihes in other countries,.

and the small balance of only 13 per cent, consists of married men with their

families here.

What does this mean ? — It means that the majority of the men have come out
here simply attracted by the high wages, and have not deemed it advisable owing to*-
the conaition of the country to make it their home. Other witnesses have shown
how wise they were in so doing owing to the great cost of living prevailing here.

What would it mean if we materially reduced these men's wages ? Would it noti-
be that the best men for the industry and the Republic, and those whom we are mo6t>.
anxious to keep, would leave, and we would be left with the improvident, and thos^-
who could not command work in their own country ?

Native labour. Now, regarding the native labour, which comprises in numbers by far the great&r

proportion of labour we are using. What has been the keynote of our trouble^ T
Lack of supply in proportion to the demand, and ineflSciency and i^orance of thi*
class of labour which is not trained to the intricate work demanded of it. Far morei j

Reduction of
white wages.

Mr. H. JentiingB' Evidence. 219

ddll is required of the kaffir on the Witwatersrand than is the case for the most part ^^^"^JL.?
on the diamond fields, or in any asricultural pursuit in South Africa. The boys
oome here raw, »ome very ypang, often with wLk phynque. and are all comprised
in the same classification. They are accustomed to their own simple ways, and desire
to return to them as soon as possible. They come, in fact, only in order to make
enough money to return to their kraals with sufficient means to enable them to marry
and live in indolence. There is much latent possibility in them for learning, but
they leave us often as soon as they become really useful, and by the various com-
panies vieing with each other to obtain their services, they have become masters of
the labour situation. If they had facilities for making their homes in this country, '***^^*^°
and if they could be induced to remain with us, I am satisfied that their efficiency Sxmr.
eould be increased two-fold, and they could even be trained to do much higher grade
work than they are now employed at This fact is illustrated in these fields by the
boys who have worked long periods being able to finish their task in half the time
that raw boys require, and this illustration is f urtJier strengthened by the well-known
evolution of the negro in America since the abolition of slavery, and also by my own
experience in dealing with the West Indian negro in Venezuela.

The Pass Law and Liquor Law have been modified and strengthened, on theP»»M»d uquo
petitions of the industry, to give more control to the mining companies in dealing "^
with this class of labour.

These laws, though not perfect, are good and useful if well administered.
But what is the testimony already brought before you in this regard ?

Witness after witness has testified to the unsatisfactory manner in which they ^SJ^***^"^
have been carried out, and the elaborate tabulated statement, brought in evidence of and Liquo:
the seventy-four companies, is eloquent on the subject of the Liquor Law, whose ^'"*
maladministration is a great source of loss to the companies, danger of life to the
natives, and discredit to the Republic.

If you should desire further evidence on this subject, I would ask you to call
Mr. A Grant, manager of the Nigel Mine, who can give, I believe, even stronger
tertimony than any before you.

Regarding the Pass Law, there has been, as far as I am aware, no witness yet
before the Commission who has stated that this law, as administered, had benefited
bis oompany, and Mr. Qoldmann has informed you that out of thirty-three companies
employing 19,000 boys monthly, 14,000 have deserted since the new Pass Law
came into operation, without one single one of these deserters having been brought
back to the mines and justice. In my opinion, the Pass Law, though good as a
temporary expedient, is only the kindergarten of the native question, and before these
fielois can ever reach their maximum possibilities, the whole question of native labour
innst be dealt with on broader and more liberal lines, and modifications and sugges-
tione in regard to it must be constantly expected by the Government.

The medium and lower grades of white labour here have to a great extent been inefiioienej o
demoralised by the black labour ; and although there are exceptionally energetic and SSS?.' '^^^
tamest white workers here, there is a lot of indolence and incapacity shown by many.
^ majority, although they may have skill in doing work themselves, lack tne
fcculty or interest in getting the best work out of the black labourer.

What we require from both black and white labour is greater efficiency, which, if Bonnsflyrtem.
'eally obtained, renders rate of wages a secondary consideration, as shewn by the
bonus system in sinking deep level shafts. Of course, we desire to get the unit of
Wage as low as is consistent with the contentment of the labourer.

What the management of the mines must aim at is to encourage in every way the
efficient man, and give him every preference and advantage over the inefficient man, and

220 Mr. Hi Jennin$:8' BvidenciK

to elevate the quality of native labour, which at the same time will justify a greater rate
of wages being paid to the whitea Contracts, piece work, bonus sjrstems, and uniformity,
in accounts would be encouraged, and the companies should not strive to make
statistical records of low wage rates, but rather accomplish cheap results judged by
work actually done.
^^'cSwnment ^^® Government on its part should endeavour to lessen the good workers' living.
iMoefluy to expenses, and make them interested in the welfare of this country, so that they will
lower white |^ satisfied to remain here, and be contented with a lower w€kge.

^^oo^e^oient ^^® Government should also do everything to bring about an abundant supply of

nib ------^ Q o AAV

to black labour, and give the mines reasonable control of it through the proper
SS'SbSar."^ administration of the Pass Law and all other laws connected with the native question,
and should encourage this labour to the utmost extent, realising its vast importance to
the prosperity of these Fields and to this Republic.

Dynamite oorte. The next item figuring on our expenditure sheet is dynamite, 2s. lO'Sd. per ton,
and 9*92 per cent of the total cost. So much evidence has been already brought up
by various witnesses on this subject that there is very little further to be said as

^^d*iJSS*^ regards the price at which dynamite can be landed here free of duty. I, however, am
^ in a position to state that in February last I had an offer from reliable people in

America of dynamite (70 per cent, nitro-glycerine) to be delivered to any port in
South Africa at 17 cents per lb., or 35s. 6d. per case of 50 lbs., in lar^e quantities^
With landing charges, agents' fees, railage, colonial duty, etc., the price would be
raised to 42& 7d. per case, delivered in Johannesburg free of Transvaal duty. This
price would practically save 50 per cent, on the present price of dynamite No. 1, or

OoDceaioiii. 1& 5d. per ton on the basin of the tonnage milled. There is, however, a great deal mor6
to be said on the subject of the Dynamite Concession than mere £ s. d., and I believe I
am the first witness that has dealt with the subject from this standpoint ; and, after
all, it is the main standpoint, as this concession, yea, and the principle of concessions, is
one of the fundamental causes which have brought about tne estrangement between
the ori^nal population of this country and the uitlandera

Take the Government Volksraad D3aiamite Commission's report on the subject
of dynamite, and it is there stated that the main articles required for dynamite
manufacture are not found in this country, and that the concessionaires have not
adhered to the terms of their contract What justification is there then in fostering
such a manufactory, especially in the early struggling stages of the mines, which are
the main source of revenue to the whole country, and the essence of its pi'osperity I
Take the concessions as a whole, what justification, intrinsically, is there for them at
all ? What nations are the most prosperous, and which of them have concessions ?

I speak feelingly and knowingly, as an American. Although we have protective
tarifis to foster industries, we have the most complete internal system of free trade.
There is no such thing known as a trade concession in the United States of America
Bvitai^ ccmoM- What is there vitally wrong about a concession ? It seems to me the crux of the

whole thing is that it places the production of an article of necessity in the hands of a
few, who are given opportunity to profit by the necessities of the many. The many
rebel against this principle, and the Government reaps inadequately, and derives little
benefit from the burden it imposes on its people. Vexations crop up on all sides;
excuses from managers and directors as regards working costs; excuses from directors
to shareholders, and general ill-feeling and destruction of confidence ; these are the
results of concessions.

In order to keep their concessions, concessionaires are tempted to use every
specious device of argument to the Government to continue their profits. It gives
opportunity to unscrupulous persons to play upon the best and worst motives o£

Mr. H. Jennings' Evidence 221

yonr people, and it is wron^ in principle and in practice. This general line of argu-
ment can be applied to all the concessions in your country.

The Chairman's patriotic suggestion to manufacture machinery, etc., in this Manuftwture o
country, and thus to give employment to a far greater number of people, is, I think, ™ *^
a most dangerous one, though made with the best intention. It might be taken
advantage of, and new burdens in the shape of concessions would then be imposed
upon us. There is no doubt that if our population were such that we were ripe for
the manufacture of machinery, it woula be an excellent thing, but to produce at
enormous cost the raw materials, and to manufacture all the complex machinery now
required, would take almost a larger number of white men than is now actually em-
ployed at the mines, and the initial stages of such an industry could only be rendered
a sufficient inducement to capital by heavy protective duties, and consequently
immense further taxation of the minea Let us first get our full growth before
such a thing is earnestly considered, and then also allow every form of healthy
competition.

Referring to the table of analysis which we have already dealt with, we find that R»iiw»y rates.
we have dealt with about 68 per cent, of the mines' total costs. General charges
figure at 522 per cent, which cannot well be further detailed, so that we have then
26*81 per cent made up of supplies, exclusive of dynamite remaining.

It is then in this item of 26*81 per cent, of our total costs, as well as on the 4*14
per cent, for kaffir food, already included under the heading of labour, that the rail-
way charges have the most direct bearing. Previous witnesses have gone into great
detail wiui regard to this railway question, giving all manner of comparative figures Railway rates on
and suggestions, besides dealing with capitalisation, profits, etc. Mr. Fitzpatrick has ^^^'
shown you that if the English rates of |d. per ton per mile for coal had prevailed on
the Netherlands line, 5s. 8^d. per ton. of coal, or about a Is. of our total costs per ton
<rf ore milled, would have been saved; while Mr. Seymour has shown that by reducing
the present rates per ton per mile to If d. without terminal charges — which rate
would still be five times higher than in America, and by employing side discharge
tracks, and so doing away with bagging — a yearly saving to the industry of £407,500
would be effected. I would emphasise that this saving would be on coal alone ; and
i the rate per ton per mile for all other goods were reduced to the basis of other
countries, and the Government used its influence with the other South African
railroads to effect a similar general reduction, our supplies (notably timber) could be
obtained at an enormously cheaper rate, the reduction varying as shown by Mr. Albu
*nd other witnesses from 20 per cent, to 40 per cent.

I see no new facts that I can bring before the C!ommission in this matter, and I

^1 now simply touch upon it from the standpoint of an engineer, and take the

general rates of transport per mile as given by Mr. Seymour, selecting machinery for

tile purposes of comparison, which is the most favourable for the Netherlands

^way. This shows: —

Cost of Transport by Rail in Pence.

iiinery-

—American

0-51 ]

3ence per

ton per mile

... 1000

Comparative

11 A

Cape Railways
0. F. S. Railway

2-34

... 4 565

railway ratM
for machinery.

•t

2-34

>»

... 4-565

Natal Railways

304

... 5-931

t»

Portuguese

407

... 7-940

Netherlands (Cape) . . .

7-69

>»

... 15-000

Netherlands (Natal) ...

506

t»

... 9-871

Netherlands (Delagoa)

4-27

t»

... 8-330

English Railways

112

... 2190

222

Mr. H. Jennings' Evidence.

I find from Mr. Dawaey's " Comparison of English and American Railways," and
the Chamber of Mines Report, the following information, which I tabulate : —

Cost to Build Railways (Open for Tbaffic).

Comparative
cost of railway
construction.!

Cost per mile, £41,846 0 0 Standard gauge.

Do.

12,756 0 0

Do.

9,056 9 1

Narrow gauge.

Do.

15.254 17 9

Do.

15,359 6 10

Do.

9,406 15 0

Do.

7,479 4 6

Do.

1883— England

1 883 — America

1895 — Cape ...

1895— Natal...

1895— Netherlands

1896 — Cape ...

1897— Orange Free State

From this it will be seen that the Netherlands Railway on their portion of the-
Cape Line charge fifteen times as much per ton per mile as the American railroads^
while their cost of equipment is only in the ratio of £15,359 per mile to £12,756 in
America, or a ratio of 1 in America to 1'247 on the Netherlands Line. I grant, as I
have shown for our operating costs in mines, that it is more expensive to work in thifl.
coimtry than in America, but nothing like in the ratio of 15 to 1. Why then is it
permitted to keep up this ratio ?

Kxpropriation of If the Govemmcnt has no control of the detailed working of the railway while*
railway. ^j^^ Netherlands Company has the management, by all means let it exercise its right
to take the railway out of the company's hands, and run it more in accordance with
the rates in other civilised countries. After all, a fair interest on the road-bed basis
open for traffic, after deducting working costs, is, in a case like this, the right-
standard for fixing its tarifil The cost of transport by rail ought to be moderate in
the Transvaal in view of the absence of heavy gradients, which would cause extra-
expenditure for tunnels, fills, etc., and of the lines having been laid to follow the
natural levels and contour of the country, so that the length of railroads between two
stations is often considerably greater than the direct distance between them in a.

Rauwav rates for straight line. These hiffh rates are not only bad for the mining industry, but also for

>roduoeexce«
vc.

agriculture. The railroads in this country should form a potent factor in its develop-
ment, by enabling the farmer to sell his produce in the market in competition with
goods from other parts of South Africa, and if railroads and agriculture were both on
a sound basis here, we should no longer see such an anomaly as we now witness —
America, 10,000 miles away, supplying Johannesburg and the mines with mealies !l
Australia, Sweden and Switzerland sending butter and tinned milk, and even
California supplying a portion of the preserved fruit !

In this connection, I beg to put m evidence a table taken from the StcUiaticiam^
and Economist f 1893-94, showing the relative value in 1892 of the different producta.
of the State of California, where, as you know, gold mining which started in 1840
was the pioneer industry : —

Products. Value in Dollars. £

Relative value of
Galifornian
products.

Wheat

Gold

Wool

Grapes

Mealies

Oats

26,626,684

5,325,317

9,361,486

1,872,297

7,260,000

1,652,000

4,844,331

968,866

1,208,213

241,643

794,956

158,991

Co-operation of
Government
required to

There is no doubt that the mines are suffering very serious loss in this directaottr

grejjnt gold ^^^ ^j^g^j. j^ j^ ^j^^ imperative duty of the Government to aid in putting a stop to it

Mr. H. Jennings' Evidence. 223

The Gold Theft Laws should be amended so that there is no possibility of o^^ thefts legis
escaping justice through a mere technical quibble, and the police and detective
department should be made more efficient ; for it is certainly most discouraging that
the Company which went to such expense and ti-ouble in attempting to bring the
insidious tempters of their tried and trusted men to justice should only reap as a fruit
of its efforts the better advertisement of the business of illicit gold amalgam buying,
illustrated by the escape of Hart, the lenient sentence of Hildebrandt, and the
symyathy of a certain class said by the newspapers to be circulating a petition for
Hildebrandt's release.

Several witnesses have most ably gone into this matter, and shown the peril of Ttaation.
the Government and mining industry in this connection. It is a recognised fact that
the mining industry is the chief source of wealth of the country, and through its
development has made great demands upon the Government for facilities to work to
the best advantage. It is therefore the duty of the industry to take upon itself the
burden of taxation in proportion to the demands it makes upon the Government, and
if there are a large number of mines working, this burden will be felt less than if
only a few are kept running. I have endeavoured to show the vast natural resources
of these goldfields, and how they differ from others in the world.

A great impetus has been given to mining here, through the success of some
companies, and in their wake have followed all manner of new mining enterprises ;
money has been forthcoming on the supposition that this was a permanent industry
which would be encouraged and fostered, and that, with time, a continually lower
grade of ore would be payable. I believe that, although the limit for further
mechanical and metallurgical improvements is very narrow, there is still immense
scope for the management of the mines and for the Government to reduce working
costs through the medium of labour and supplies, and if the mining community and
tiie Government work energetically and harmoniously together, I see no reason why
in course of time the present costs should not be reduced by one-third, or about 10s. *\iorof'wr£
cm the average basis of 298. per ton. But this cannot be accomplished at once. It Jng coits oi
will take time and earnest enorts on both sides. If we show that we are effecting ***
this reduction, and that the Government is earnestly helping us, capital will again. •
flow into the country, new mines will be opened up and old ones re-started, and the ^^^ niment oa
revenue of the Government maintained and increased by renewed prosperity. But, if oper»tion re
iwthing is done by the Government, the comparatively few present working mines SSST^workiS
must directly or indirectly pay the whole or nearly the whole taxation of this *^*^
conntry. The direct taxation is certainly small, but the indirect is extremely heavy ;
wid it is obvious that these few mines are utterly unable to meet the enormous strain
of supplying the Government with the necessary funds for its yearly expenditure,
^ch m 1896 reached, according to the budget returns, the huge total of £4,500,000.
The obvious result of this condition of affairs will be a deficit in the Government
Iwdget, and the strangulation of the mines. The evil day may be averted by loans,
which the Government can only finance upon the assumed prosperity of the industry ;
Mid if the life is crushed out of the industry by oppressive direct or indirect taxation,
Jt will be harder and harder for the Government to continue raising loans. If the
Mrfnstry has made mistakes in being over confident and launching out in a greater
Measure than was intrinsically justifiable, the Government has profited indirectly by
ftis wrong and is party to it.

Now, this line of argument brings me to the main problem we both have to face, Lack of oonn-
^t lack of confidence. You may wish to call this a sentimental grievance, but it is oo've^nmeS
k) my mind the most vital with which we have to deal. It would appear to a great JJ^^ii!**"*^
^^y who have read the statements in the press, memorials of grievances and their

224 lAr. H. Jennings' Evidence,

. method of acceptspiice and treatment, that you do not believe in us, that we don't
believe in you or each other, and I fear the world will soon not believe in any of us, if
the existing state of affairs continues. It is no use for the industry and the
Government to incriminate each other ; this will only make matters worse.
Qovernment has Granted, ou the ouc hand that there has been over speculation on these fieldB»
wer^ipecuia^ surely ou the other hand the Government has been a partner to it by receiving emoln-
^<>°* mente through fictitious valuea It has made boom budgets if we have made boom

estimates ; but I do not think there is any necessity to grant this to the world.
^mmeSl ^^''" What I think the Government should do is to justify the policy of its Republic

and its main industry to the world, to show to the world that we have intrinsic merits
here ; that we have the greatest gold fields in the world here ; that there are most
earnest workers here ; that the world has been given most exhaustive and accurate
statements by the State department and by the mdustry ; that a great deal of the
troubles that we are subject to is made by the world, which has taken our good work
as a basis for unjustifiable speculation, and made gambling tables of our mines. This
argument we can bring to the world only in one way, and that is by being united our-
selves. How can we be united ?
Government re- L^t the Government commence by abolishing the dynamite concession, taking over
oSf^Mmite ^^^ railroads and reducing their rates. This must, however, only be considered as an
andraiiway initial measure and an earnest of the Government's desire to conduct the government
con ons. ^j ^j^^ Republic on true, broad Republican principles.

What have I shown to be tne main factor for us to deal with ? Is it not the
labour question, involving all the vital principles of Republican government ? We have
not complained so much against the laws of this country as against their administra^
tion. The Government must take us into its confidence. It must allow our trained
Represenutdon ability to bear upon the serious problems before us. We must be made partly
fn^^u's^r^y responsible for the administration of this Government, and to be made responsible we
nec8«ary. must have representation. I would be a coward not to face this issue with my bias
towards you and Republicanism. I see no other way out of it.
Radical relief If we are Only granted the reliefs prayed for now, we will come back for others

required. shortly, and there will be ill-feeling and heart-burning as of yore. Face the difficulty
fairly and squarely. This country has now an opportunity in its history of showing
its true greatness, by giving freely what could not be forced from it. I have not been
mealy-mouthed, and I leave it to the Government to devise how it can most safely
grant us a voice in its affairs. I think the workers on these fields care nothing for the
shaping of the foreign policy or the general government of this Republic. They do
not wish to deal with problems in districts m which they do not work or are not
interested. What they want is representation and a voice in things which concern the
economic problems that they have to deal with. How to do this I will not be so
presumptuous as to suggest ; all I ask is that the present burghers admit their own
limitations, lack of experience and training for these problems, and ask the best and
wisest of all countries to aid them. Let them first believe in their hearts the necessity
and right of this demand, and the way will be made clear.

This statement is made by me as an individual, and one in sympathy with
Republican principles, and not as one representing any body of men or corporation of
this place.

Mr. Hennen Jennings on coming up for examination, expressed his wish to first
substantiate the statement he had made as to dynamite. He proceeded:

Pricf^oJ^ported In my statement I say that dynamite can be obtained from America for 17 oentB ]

a pound, at any South African port. I wish to put in evidence copies of cables sent to ■

Mr. H. Jennins^s' Evidence. 225

America, and the answer to the same, which show that, m large quantities, dynamite

(70 per cent, nitro-glycerine), can be delivered on the coast at 35s; 6d. per case of 50 lbs.

The cable I sent in February of this year, which was to a gentleman I knew in

California, who has been connected, to my knowledge, with the dynamite business for

something like 20 years, was as* follows : — " Referring your letter, 23rd July, 1892,

quote present price afloat, South African port, dynamite, 70 per cent, nitro-glycerine,

large quantities, cases 50 lbs. Cable reply immediately. Wanting a comparison local

prices. The answer received was — "17 cents." Tliis cable I will put in evidence, and

would state that this tender was secured without even a reasonable prospect of business

beiz^ done, and without a guai'antee of Government support in any way. You will

see I also made a statement that the landing charges, agents' fees, &c., would raise it

to 42a 7d. per case, delivered in Johannesburg, free of Transvaal duties. You have

the evidence of other witnesses showing that landing charges are 6d. a case, agency 6d.

a case. Colonial duty 28. Id., and railage 4s. ; in addition to which, by taking the 17

cents a pound, and bringing it into Engnsh money, makes 35s. 6d. This offer means that

we can get dynamite here for 42s. 7d. per case, or just about half the present price, and

I can guarantee the reliability of the parties in America making this offer, as I have

had long acquaintance with the gentleman who cabled the offer, and know that he can

tnd will carry out what he agrees to do. I would also state that Mr. Pichoir, tho

gentleman who has made the oner, has written to say that the three established dynamite

eompanies in California, by jointly contributing, could agree between them to increase

their plant so as to furnish 16,000 cases monthly, within two or three months after

reoeivmg a fixed order. Of course they would require a definite contract to increase

tkeir factories to this extent, but arrangements could be made with them to guarantee

this supply. I don't know the minimum length of contract they would demand, but I

don't think it would be unreasonable. In this connection, I would also state that I

have received information from London to the effect that, since this Commission of

Enquiry commenced its sittings, Nobel's Trust have used every influence and device to

prevent other European manufacturers from making offers, but, in spite of this, a

eeitain firm in Europe makes an offer to Wemher, Beit & Co., by which dynamite can

he delivered here, including all usual charges, to Johannesburg, excluding Transvaal

doty, for not more than 40s. per case, and blasting gelatine for 568. This offer is from

(me small manufacturer, and would only partially meet our consumption, but is very

valuable in this respect, that, in making the offer, the manufacturer states that he has

heen approached by a person describing himself as the agent of the Transvaal Govem-

nmit, ostensibly to ascertain at what price supplies of dynamite can be bought, but

suggesting that che selling price in the Transvaal is 85s., and that the manufacturer

flhoold frame his offer accoruingly. I have brought this matter to the notice of the

Commission, not in the belief tlmt the Government has anything to do with the so-called

^ent, but to put them on their guard against the ingenious devices of the dynamite

iQQDopolists, so thoroughlv in accord with their past tactics. I take it the Government

has appointed this Commission in order to get the truth, and they will be judged before

all the world by what they do. It is our desire to assist them by all means in our power,

foA to protect the interests of ourselves and the Government, which are identical ; and,

H it is the Government's intention to actually get cheap offers of dynamite, and break

Bp the present monopoly, I would suggest that they should throw the tenders open to ^^ ^^^^ ,^

the whole world, giving bcma fide competitors ample opportunity to make bids, bv dj-namite.

^ving them reasonable time to extend their works and meet the demands of this

uidiistry ; and, in this way,' I am satisfied that even lower figures than those I have

quoted would be obtained. A bid obtained through the agency of the monopolist, and

rt fihort notice, would be wholly misleading, and would be an advertisement of bad

226 Mr. H. Jennings' Evidence.

faith on the part of the Government. Another point I wish to make ; It is noticed
Composition of that the quotation is fbr 70 per cent, nitro-^lycerine. They claim in California, how-
AjjMrican dy. ^y^j.^ ^j^g^^ ^j^jg 70 per Cent, nitro-glycerine dynamite is equal to 75 per cent, manufac-
tured from kieselguhr and nitro-glycerine. They claim also that, by using a different
absorbent, they obtained the same strength as obtained by using guhr alone with nitro-
glycerine ; and they also claim, and state that, by test, through a mortar throwing a
projectile, they have obtained the same distance as in the test for the 75 per cent; I
oelieve it is even a slightly greater distance. I think that is all.

Mr. AUm,

What absorbent do you use in America instead of kieselguhr ? — There are various
absorbents used by the (Ufferent factories in California. I don't know them all, bat
that in use at the factory I have just now quoted, is partially kieselguhr, nitrate of
soda, and wood pulp.

You know the article principally used on these fields is gelatine, and the absorbent
collodion cotton. They make the same in America don't they ? — They make it, but
their theory is somewhat different to ours. They don't believe in using such intensely
powerful explosives as we do. Thev regulate their dynamite in a<;cordance with the
work, using a lower strength on softer ore ; and they consider it more economical to
use a lower grade of explosives than we do.

What is the proportion of strength of dynamite No. 1 and .blasting gelatine ? — ^I
believe that blasting gelatine has nitro glycerine something like 93 per cent.

Yes, but I mean the proportionate strength. — I believe the strength is about pro-
portionate to the amount of nitro-glycerine used.
<3ornish prices Are you awarc that, in Cornwall for instance, dynamite is sold — containing 93 per
or > nam . ^^^ ^j nitro-glycerinc — at 30s. per case ? — ^The only knowledge I have is obtained
through the evidence of other witnesses.

In the Cape Colony the duty is 12a 6d. per case, is it not ? I mean the dynamite •
imported into the Colony, not transhipped — I am not prepared to state that.
Free trade in You dou't think there would be any difiiculty in getting dynamite if we had fifee

dynamite. trade ? — Nonc, with proper notice to the manufacturers. I have shown from Mr. Pichoir's
statement that the dynamite works can be incre€ised in two or three months to increiM
their supply.

Would you advocate free trade in dynamite ? — Most assuredly.
^ control^ of ""^ other countries, is the manufacture and sale of dynamite carried on under
manufacture the supcrvisiou of the Qovemmeut ? — In the United States anyone can manufacton^
of dynamite, y^^^ j^ Venezuela it is under Government control.

Are there any particular reasons why it should be carried on in Venezuela undff
Government supervision. Was it not in order to procure an income to the GoveiB-
raent ? — Yes, and there I think it was particularly unfortunate, because the Nobd*»
people had the same kind of contract as here. They put up two factories simply to
put cartridges together, as at first done here, and, it being a very hot climate, they had
two or three explosions at their works. The dynamite was very much worse thtt
here, and it was very dangerous to the lives of the workmen. We had no control inanj
way, and had to use what they gave, and the price was even higher than here.
NobcrB mon. Supposing Nobcl's, through their influence, were able to foim a ring, do yoft

think it would be possible for the mining industry to build their own factory ? — ^Therl
would be absolutely no danger whatever ; I speak knowingly from the early histoiy
of California. Nobel's, more or less, had a monopoly in California, through pateD^i
rights, and they regulated their prices just as they pleased. But another compani!
was formed with a difierent absorbent, called the Vulcan Company, and it manv

Mr. H. Jennings' Evidence. 227

fjBCkired dynamite which Buited the purpose of the mines just as well as theirs. They
had a lawsuit on the OTound that the Vulcan Company was infringing their rights,
bat the United States Courts of Law decided against Nobel's, and this company was
allowed to manufacture dynamite ; and in its train others came, and through the com-
petition the price of dynamite was reduced immensely, and anybody can manufacture
dynamite in America in any way they see fit. The only thing is that the established
companies have a start, and in building a new factory it requires capital.

Provided the industry procure the amount of capital required, there would be no Dynamite fac-
difficulty in establishing a factory in Germany, England, or America ? — No ; and it is b^t bytodi^
shown how quickly a factory can be built by the fact that after explosions, where the ^'^*
buildings are swept away, a new factory springs up again very quickly, and continues
its trade.

Hafi sulphur or saltpetre ever been found in this country in large quantities ? — I importation of
have never heard of it, and I think the Dynamite Commission appointed by the to^dynimiS*
Government made that statement.

Then a local dynamite factory would have to import sulphur, saltpetre, glycerine,
and guhr ? — Tes, and skilled labourers besides.

If the monopolists claim to manufacture dynamite after importing all the raw
floaterials into the country, would it not be as just for us to claim that we manufacture
Biaehinery and engines ? — You could certainly not claim thai

With regard to railways, is there any principle in America regulating the ^®^i!i2d*iSaiJd'
boUdin^, management, and tariff of railways ? — Tes, and in America the system of li^^ in united
ailroa^ is the greatest in the world. I think there were 370,000 miles of railroads in ^^^^
the world up to 1890, of which the United States — not the whole of North America —
bad 163,000 miles, or 44 per cent, of the whole railroads in the world, and nearly 4,000
in excess of the mileage of the combined railroads of Europe, Asia,, and Africa. The
system of encouraging this immense railroad system in the United States is, in my
opmion, one of the features of the development of the United States. In the United
States the Government allows — ^in the settled part of the country — ^private under-
takings to build railroads when they show their financial capacity to do so, and allows
thm to expropriate private property, the indemnity being fixed by the Courts of
law : but in return for this, reserves the right to control and fix rates — control of.raii-

' cj way ffttes 1

Equal to the right held by the Board of Trade in England ? — I will explain how united sut?
IW control ratea In the United States there is a Fedeoal or Central Government
m a States Government. In each State there are Commissioners appointed. A
iD&ximum tariff is fixed by law in the States, but the Commissioners have power to
fit rates under the maximum tariff declared by law on presenting good reasons for so
doing. In addition to the State Commissioners, there are appointed by the Federal
Ck)vemment Inter-State Commissioners, who are appointed with the object of pre-
venting railroad combinations which would be detrimental to the public, and impose
Ijcal and exceptional impositions. These laws, thus briefly outlined, have wonderfully
tnianded internal trade. Take Mr. Seymour's testimony, in which he shows the total
liillions of miles of haulage in the United States and the maximum rates on the main
fine to be lower than a penny, and the minimum a farthing per ton per mile. You
thns see what wonderfully cheap and economical work can be done through competi-
tion and judicious Government regulation.

Most of the railroads in America are private enterprises, are they not ? — Private
enterprises for the most part, but in some of the unpopulated territories, in the early
fimes, the Government gave certain bonuses to the railroads in Government lands, and
fortain aid ; but in giving them this land they reserved to themselves the alternate

228 Mr. H. JenningB^ Evidence,

Government aid sections, and the Qovemment thus shared half and half with the company in the

to railroads in • i i « j. t i ^ mt ^

United sutea. increased value of the land.

There is a maximum rate and a minimum rate, which the Qovemment has gofr
the right to supervise ? — ^Those rates are regulated by two Boards of Commissioners.

*" united'stfttea What Dolicy is adopted generally by these railway companies on these lines which
rauway rates lead throu^ ucw couutries which have to be opened up. Will these companies charge
tricta*^ dis- maximum rates, or such rates as would induce people to settle and cultivate the lana ?
— They charge, in the sparsely populated districts in the United States, wonderfully
low rates for the amount of traffic they have, and in some cases they expect to lose
money in the initiation of railroad systems, hoping to get the loss back by opening up
the coimtry, and, so to speak, stimulating and proaucing traffia

They don't try to make big profits at first, but 'expect to make it when the
country opens up and is prosperous ? — ^Yes, they try to make their main profit when
the country has oeen developed.

^^p'e^rtion What means, in your opinion, should be adopted by this Government to regulate
necewary to our native supply of labour ? — I think I have made a very forcible point in my state-
S^«^uve ment about that. In this connection I first state " the Qovemment should do every-
labour. thing, to bring about an abundant supply of black labour and rive the mines reason-

able control of it through the proper administration of the l^iss Law and all other
laws connected with the native question, and should encourag'e this labour to the
utmost extent, realising its vast importance to the prosperity of these fields and to
this Republic." Now I should like to amplify what I have shown in my statement^
that the labour is in the ratio of one white man to eight or ten kaffirs. I am
thoroughly satisfied that the kaffir is susceptible to training, and becomes far more
vaiwof exper- uscful to US after he has been with us for a length of time. My experience in
lunds. "* ^* Venezuela, where we dealt with the negro, shows that, by staying a number of years,
and giving them incentives to stay, a great deal more work, and more comphcated
work, could be got from the negroes, and we could reduce the number of white
employees by their instrumentality. I think what the Gbvemment should do here is
to aid us in trying to keep in every possible way the natives that show capacity in
special departments. I have enquirea from compound and mine managers, and it is
noticeable that the East Coast kaffirs take better to mining than the higher class
native — Zulus and Basutos. The Zulus and Basutos are not willing to work under*
ground to the same extent. Now, these peculiarities of the different tribes of kaffiis-
should be taken into consideration.

iwiway rates for Do you think it would be to the advantage of the labour market if the railway
natwefc ° authorities were to bring down natives from up country at a veiy low rate, and charge
the difference when they go back ? — Certainly ; I do not think the railway would lose
anything by it.

It would induce natives to come down here, because it would give them aa

opportunity of reaching this place with very little money ? — Another thing strikes-

me, and I can say it with all candour to the Government — I do not think, considering

Indigenous na- the drafts wc are making on the native labour supply, and considering the number

•uffldSt"'?© ^^® farmers require for their own use, that there is sufficient native population hera.

meet demand. You Want natives here for agricultural purposes at as cheap, or even cheaper price, as
we do for mining purposes. We require Kaffirs with good physique for the nunes,.
and take the population of any country, a comparatively small number are fitted for
miners. You want the mining and agricultural industries to work hand-in-hand with,
regard to the nativea

Mr. H. Jennings' Evidence. 229

Chairman.

With regard to the last portion, that the Qovemment ought to encourage kaffir
labour, all the witnesses insist on that point, but none of them, up to now, have shown
in what way the Government can encourage native labour. The establishment of
locations would spoil the natives, and you would get very little service from them, objectioos to
That is my experience, and I have worked with them all my life. One way to encourage *********^'
them to come to the mines would be to give them facilities for coming here, to make
their lives as pleasant as possible, and to pay them as much as possible, even more than
at present, and that you don't want to do; while to compel them, everybody
acknowledges, is impossible. The Qovemment can use its moral influence with the oovernnMntr in-
kfldflSrs, as rar as those who reside in the Republic are concerned, and give them every Tna^«L m-
incentive to go to work on the mines ; but, if the kaffir does not feel mdined, and if ^^^
it does not lie in his nature to go, how can you fi^et him to s^o ? The same difficulty is
found here as is found eveiyThere. The Vculturist f Js it apart from the mi^es.
Hie Volksraad, year after year, is stormed by memorials from the public asking them
to devise some means to make the kaffir work. Notwithstanding all the laws that ^"J^Jjt'towI
have been made bv the Government, we cannot keep them here, and the kaffir from tain nativM of
the East Coast will not reside on the Rand or in any part of the Republia His trie? ^^^^'
inclination is that he must reside in the district where he comes from. I think every
member of the Commission is trying to solve the native question. I only say this to
show that if the Government, on their side, fail in their endeavour, that it is not oood intentioiui
because they are not inclined to assist, but because it is an insurmountable difficulty. of Government

Witness. I appreciate what the Chairman has said, and there is a great deal of
force in his words. I say there are difficulties, but I do not think they are insur-
moantable.

Chavrman.

Will you please sa^ how the difficulties are to be surmounted ? — The reduction of
the railway fare is a tnfle. Suppose the railway brings them for nothing they will
come, but to get them to work is another thing. I agree with the Chairman that this
native labour question is the main question for the mines and the whole Republic. I
have had no experience as the early settlers in this country have had in subjugating
the aboriginal race, and I admit I have no right compared with them to speak on this
portion oi the subject, but I claim having been bom in the Southern States of the
United States, and having been connected with the working of negro labour in the
Venezuela mines, that I have a right to speak on the kaffir labour question. The
snggestion with regard to locations was a general one, but let us see how it worked in Locations in
Venezuela. The aboriginal race was thoroughly unfitted for the mines. The white ^*"*™*^
nee, owing to the heat and the climate, could not do all the work, so were driven to

St labour from the West Indian Islands. The Government tolerated their importation,
ley came first without their women and their familiea The mines paid immense
wages to induce them to come. Little by little they brought their families, and the
companies who had ground rates encouraged them to have what they called canucoa or
garc^ns. They came from dififerent islands, and they had these little locations. There
was a certain amount of rivalry between them, their wants increased, and that stimu-
lated their ambition, and they were finally willing to do far more work than at first
They remained long enough, satisfied with having their families in the country, to
enable them to become skilled. Now, in suggesting locations, I do not mean simply
one great big location around the minea I wiouJd think the farmers would, for their snwug^entj
own interest, in the best agricultural parts of the country, try to get natives to come Loations.
by offering some little inducements, and allowing them certain plots of land. The men

230 Mr. H. JenningB' Evidence.

of the strongest physiqae could go to the mines, but the younger and older men and
some of the women could work on the farms. If that is practicable — I know it is
difficult — the agricultural population as much as the mining industry would benefit
Something must be tried diTOrent to what we are doing at present Now that I have

Diflerenoe be- gone SO far, I waut to Say that, of course, I know the ne^ro of the Southern States is

buSb n^roes uot the Same as the kaffir ; that from being in contact with the white race for so manv

and Eaffln. years he has developed more ; but it shows you the latent possibilities of the blacK

ra^e. What these negroes are capable of doing in the Southern States, I do not mean

ProgreM of ne- it is possiblc to do here right ofL In 1863 a proclamation was made by President
gTOMin United Li^^j^^ freeing all the negroes in the State& At that time there were about 4,000,000
negroes in the States, and it was supposed that we would have immense trouble in
controlling them, but the natural peacefulness of the race was such that they were, so
to speak, absorbed in the American BepubUc, and were granted fuU franchise righta
There is a social race distinction in America, as there should be, and in the South they
recognise their inferiority, though they have equal political rights, but even so we have
no trouble in keeping them in their place. In the Southern States the Government has
demanded compulsory education ; they have their own schools, their own colleges,
training schools, and ministers. I am givingyou this as an illustration of what the
black race is capable of being brought to. We cannot do this in a day, but I am simply
pointing out to you the direction m which to work to develop the latent possibilities
of the black race.

There is also a portion of South Africa, where slaves have been freed, where they
have got their full iranchise rights, and what has been the consequence ? They want

^^ocationiL' *^ to be morc bosses than the white men themselves. Elxperience here teaches that it is
just those kaffirs who live in the locations of missionaries that you cannot get to work
when you put them on a farm to sow, etc. From that class you won't get one to work
on the mines. That would be the consequence of any locations that might be
established here. — I don't wish you for a moment to suppose I advocate giving the
native races equal rights with the white races at all, but I say you ought to ao all that

improvemmt of is possiblc to cucourage them to come and not to lose heart by present failures here,

powibie. "'^^^ ^^^ ^ f®®^ ^^^ these races by judicious development are susceptible of immense

improvement. Tou want to give them a stimulus, and you also have to make the lazy

Taxation of na- oucs havc the ncccssity of earning their livelihood by taxation.
^^^' They are already taxed higher than the white population, and it would be

unreasonable to tax them much more than they are taxed. — ^There is one point I was

oecnreoochand reading over in the testimony of other witnesses. It was stated that the little loca-
BuiMsdoorn fcion at BuflTelsdoom is doing very well, and Mr. Way, of the George' Goch, spok^

locawonB. <*iii*i*ti*

favourably of his location.
Location, on I wiU admit that where a mining company haa got itB own ground, and whero
SSi^grouSdi ^^^ kaffir is given ground to work, the kaffir is entirely dependent upon the com-
pany for that ground, and there he does work. But where would you get a place to
The Squatters' put sll thosc kaffira The Plakkers Wet provides that no more than six famikes shaU
^^' occupy a farm, whereas you say there are not enough kaffirs in the Republic to supply

the wants of the minea — I would tr^ to induce uiem to come from the East (x^ast
sparsity of here. Come down to one of our main troubles here. It is the sparseness of tho
population'!** population, and the great demand made on the country from the suaden introduetion
of this great mining industry. The population of the whole world averages aboot
twenty-eight to the square mile. The population of this State in whites is less than
two and a half, and with white and black it is not over seven. That was one of thfi
reasons I did not think we were ripe for manufactura If you take the manufactiu>
ing districts of the world, you will find the population very aense.

Mr. H. Jennings' Evidence. 281

But not with black& — Well, blacks work in some of the Southern factories in ^wEjSC^f^^iJ^
Jkmericab toriei.

In America, but not in other countries.

Mr. BraJchan.

With re^rd to taxing the natives, it is your opinion that this tax can be in- TuuitioQ of n*-
•ereasecL Seeing that the whites pay, in direct taxation, very little, and yet pay a ^^
good deal in indirect taxation — that is to say, in duties on the articles they con-
some — do you think for that reason the hut tax could be increased ? — I would not
Uke to say it could or could not. I say it is a judicious mixture of encouragement
•and necessity that will make them work. But I beg to differ from the Chairmeui as
regaxds the kaffir taxes here being greater than that of the white& It may be so in
•direct taxation, but indirect taxation has been so much written about and spoken ^'^.!tf^^^
about that I think the Government should really find out what that is. I have seen
statements in the paper where some one meui figures out that it is £31 per head, and
•others different sums, but it is certainly very great, and I would advise the Govern-
ment to put their statisticians to get reliable statistics of all other countries in the
world, and compare them with the indirect taxation here.

If these figures given in regard to the indirect taxation of whites are anywhere ^^^^^^ ^''^^^
near the mark, then there is reasonable room for increasing the taxes of the kaffir. — ^ ^^
1 don't see that connection, because you cannot tax the kaffir beyond what he is
•eapable of paying. They could not pay in proportion to a white tax of £31, or
•even £10.

This taxing him more heavily would compel him to work — would force him to
"work. — It would induce him to work, but you have to get him into the country first,
•and you do not want to discourage him too much. Although I may be alone in the
idea, I think we have to graduate the wages of the kaffirs in our mines — that is to say,
try to induce the best kaffirs to work on piece or contract system, and pay them contract system
wording to what they do. It is humeui nature to do better when encouragement is ^'u,?*^^* *•*
^▼en. We all want encouragement

In regard to locating kaffirs on farma The Plakkers Wet limits the number of Th^^squattew
families located on one farm to a very small number — six. Don't you think that law
^ould be in the way of bringing them to agricultural districts ? — Is that the law ?
Veil, I think that is a small amount

Chairman.

That does not prevent the Government from creating locations wherever they ownership of

inight think fit In America, is the railway chiefly owned by the State or by private ^^**" ***''

enterprise ? — Private enterprise, under State control.

You say here in your report it would strengthen confidence if the Government

^ere to run the railways themselvea — Yes, that is a point I would like to speak
^aboat Although I believe in the private railroad system of America, I advocate, for

the best interests of the Government, that they expropriate these railroads here on ExpropriaUon of
the ground that they are neither private enterprises nor a Government enterprise, but »*"^y-
4 mixture of both, and it is more or less the same principle that I mentioned with
legard to dynamite. It is a concession, and the curious part is — I may be mistaken
in this, and some gentleman connected with railway matters will perhaps cprrect
me-^hat, although the Government are such large stockholders in the railroad, they oovemment ha*
liave really no voice in the administration, and, although they ^aranteed the whole N*etherhtnds
debt of the company, absolutely the only way they have of regmating the railway is ^SnteSition**'
hy expropriation. I understand that the Government have not even a director on the

232 Mr. H. Jennings* Evidenoei*

* -

•

board in Holland, and, although they have a great holding of shares, they have no*
more voice than a small holder. Mr. Middleberg, in his statement, has practically
said that the company had the right to regulate the tariff, and the Government con-
trol is only through expropriation. Now, how are you going to get the very best
working for the industry and the Government under sucm a condition? Mr..
Middell^r^, as the representative of this Corporation, tries to make the biggest
dividends he can. He made a very clever statement, practically laughing in both our^
faces and throwing dust in our eye& We are reduced to expropriation if we want to*
control the railway.
Reduction omB- If the Government decide to expropriate it is very evident you cannot get an:

wi^rat(», and immediate reduction. Thus we get a difficult position, because all the witnesses said
expropriation, j^ ^^ ^j^^ ^j^^y ^f ^j^^ Government to insist on a reduction. Thus we get a difficult

position, because all the witnesses said it was the duty of the Government to insist on.
a reduction, and also that it is the duty of the Government to expropriate the railway.
Tou want both at the same time. — I think it is not in the power of the Government
to give us both at the same time, even if they want to. I don't know if I am right,
or not

How not ? You admit the Government cannot give both at the same time. Why*
was it given by all the witnesses that they wanted immediate reduction in tariff and
expropriation ? — ^According to my argument, that is impossible. Am I not right im
my argument that the Government had no power to reduce the tariff without
expropriation?

I do not want to answer the question, but in your evidence you insist upon^
lowering the tariff and expropriation.

'^heSnds&S' ^ Understand from you that you are asking for two things at the same time —

iii'Ey rates to rcduction of tariff and expropriation ? — What I want to make clear, and I am afraid £

priiSSonr^'*^" did not do so this morning, is that if expropriation takes place, the reduction in tariff

will follow. Also, that, although I believe they have no legal right by which the-

tariff can be reduced before expropriation takes place, there is always the possibility

of making arrangements to taice over the railway prior to the eighteen months by

giving the company satisfactory equivalent. Therefore, it is not impossible that both.

can take place, although it cannot be done by the exercising of legal rights alone.

Prioe of import- I Understand from your evidence that without Transvaal duty, dynamite can be

ynamitc. jg^^jg^j j^^j.^ ^^^ ^Qg p^^^ case ? — 42s. 7d. from America, and 40s. from the small

manufacturer I spoke of.

And that dynamite will be equivalent to No. 1 used here ? — Yes.

Quality of im- Havc you any proof to that effect ? — Simply from their statement — of tests that

ported dyna- j^^^^ heeu made showing the number of feet a projectile was thrown ; and the

calculations were carefully made. In sending dynamite here they would be

willing to subject their dynamite to a test, to prove it is of the same quality as they

guarantee it . .^

While labour. As regards the latter part of your statement, you and many witnesses have said

before that white labour should be put on such a footing here that white people
should feel at home here, and make their abode here, but that expenses of living kept
them back from doing so. I understand that the wages paid here are proportionate-
to the expenses of living, and that should not be an obstacle. If I were in Europe
earning £2, and living on £1 10a, then I would be on the same basis. — ^There is-

Married and un- logic in that. I tried to Doiut out that these high wages did induce single men to
niamed min- ^^^^ j^^j.^^ ^^^ j^j, married men the inducement is not sufficient to bring them here
with the idea of settling. The statement of Mr. Goldmann shows the percentage of
miners whose families are left behind ; and, after all, the thing to get in a BepuUic i*

ers.

Mr. H^ Jennings' Evidence. 233

the people to cast their lot in with it, and the basis of that is, that the married popu-
lation and their ofiQspring, in the course of time, would feel most satisfied to live in the
•country, and be genuinely satisfied with a lower wage.

In the latter part of your evidence, under the heading of " want of confidence," ^^llkoe be^
yon bring forward matters that are a jjolitical contemplation, and are not really a £,dmin?i^1?
subject for discussion before the Commission, but still there are some remarks with dustry.
nwrhich I differ. This is not the time and place now to discuss the matter, because the
<^harge of the Commission is only to see what is necessary to assist and foster the
industry, to take away the present depression as far as possible. There are a couple of
sentences which I do not quite understand, and I woula like some enlightenment on
the subject You say, " what have I shown to be the main factor for us to deal with ?
Settling of the labour question involves all the vital principles of republican govern-
ment." I do not quite understand the meaning of that. Must I understand thisit it is
the duty of the Government and Republic to solve the labour question by supplying
•the employer with workpeople ? — ^That is a question I have endeavoured to touch on in
4» light a manner as possible. I felt diffidence in doing so at all. If you notice, in
the last p€u:t of my statement, I said I will not be so presumptuous as to suggest any-
thing. 1 feel, with the Chairman, that the time and place is not propitious K>r a free
•discussion upon it, but, in considering the labour problem of the country, it is almost
impossible to go down* to the vital elements without touching on politics, and, if the
Chairman gives me the invitation, with all sincerity, to discuss tins matter, I am
perfectly willing to do so, but I do not care to do it unless he feels it is advisable for
me to do so. I have a good many arguments to bring up, and, if I attempted it at all,
I should have to speak just as I feel — in a perfectly frank way, and it might give
offence, but I would do it with all kindness of purpose. Now do you think it would
•be wise for me to do it ?

I only want that one sentence explained. I do not consider that a political Dutyofaaepub
•juestion. All I want to know from you is what you mean by that sentence : That it Hbow.^"*^*^
is the duty of the Government, as a Republican Government, to provide the necessary
labour ? — It says that in so many words. I believe it is the duty of the Government Duty of Govern
to encourage all classes of labour in every way, to make men satisfied. It is also so as ^o^u^rag'e ^la
regards all these questions of Liquor Law, Pass Law, gold thefts, ete., because it **<>"«■«"•
resolves itself into this ; the only argument I can brine into such a case is that the
people most vitally interested in the carrying out of that law must have the power in
the selection of an overseer in the work of the people, and therefore it is necessary to
bring in a certain amount of politics in speaking oi local government I do not want
to go into high politics. I merely want to state this : I am a mining engineer, and
lave never engaged in politics in this country or any other coimtry, and I do not
Tinderstand them very well, but I understand mine management, and I would bring
this illustration forward. Take a general corporation as a simple illustration of a
Bepublic ; take the shareholders as the public at large ; take the board of directors as
the main central Government ; and take the mine manager as the local government.
If the board of directors say to the mine manager, we are sending you a man we know
is very good as mine or mill foreman, and we know he is so good that you shall have
no power to see he does his work, and the only thing you can do is to complain to us —
what is tiie result 1 Perfect chaos in the management of the mine. The board of
'directors must have confidence in their local government, so to speak, that is in their
manager, otherwise he has not got the control of his employees, and the thing won't
work. That is as far as I care to go into politics ; I tninK you can draw your own
tconclusion&

234 Mr. H. Jennings* Evidence.

Still that is not a reply to my question, which is simply this-^whether it id the-
duty of the Government to rebate the supply of workers for the employers ? — ^Not-
absolutely directly, but indirectly, yes.
MewsomteMt- On that point I should like to have some information, in order to give us some
^ guide. — ^The Government could make the cost of living low, to make the labourer

satisfied, and give him political rights,
poiitioai rights. '' Political rights " is out of the question. Of course the natives could not get

political rights. — 1 am talking about white labour.

I am talking about black labour. In what way will it make the white labourer
more contented to give him political privileges ? — In possession of these privileges he
feels he has power to regulate his living expenses ; also that he has the control of
educational advantages for his children, and can gratify his ambition in political life.
I think these are three main reasona

Tou say now if they got political rights, it would encourage them to live here,
whereas in your statement you express it somewhat differently ? — I see there is some-
thing rather like a contradiction. What I want to impress on you is that a man
LooAi nif -gov- shomd have rights in local government and not necessarily in the central government,
enunent. j j^g^y^ hoeiji educated in the United States, where the keynote of the whole system is
local rights. In the territories they have no voice in the central government, but-
they have perfect local rights to arrange things among themselves. Now in the
territories I think it would be an interesting point for you to know that the central

government appoint a governor and certain other officials with him. But the people
ave a right to their legislators in a similar manner as in States where they have the
full franchise, and they regulate their own little circle of affairs without interference
from the central government. They are not obliged to take the oath of allegiance to*
the central government, and they need only live three months in the place in the
district in order to obtain a vote for their own affaira Those are territorial rights,
and I wish you not to confuse them with State rights. And, after all, that is the key-
note of American republicanism. There is another instance, in my native State of
Kentuckv, where there is no general prohibition of the sale of liquor — ^to show you the
extent of local rights — any town can nave its own liquor laws and prevent the sale of
liquor within its own district.

Tou are going away from the subject There is another point in your statement
What do you mean when you say " If we are only granted the reliefs prayed for now,,
there will be other questions shortly, and there will be as much heart-burning and ill-
feeling as of yore ? " — I mean this. If we are granted advisory boards, and have no*

iQsuiBcienpjr of coutrol over the personnel of the people who minister to our local wants, we shall find
5<i^" ** ' ^ things won't work, and we still feel — ^rightly or wrongly, it may be our own fault — but-
we think it is the Government Whereas if we have our rights in our own local,
affairs, and we make mistakes, and even make a mess of it, we are happy in having "
finger in the pie."

That is not the question put to the Commission or Government, to erect your
local board, which can tax the public according to its own ideaa The real question p
to the Government was to give certain reuef, and that is the only relief whict^
Government can give, even if you have a local board, because the local board cannot
lower the railway tariff throughout the whole State, nor go into the dynamite
concession or other questions you have quoted here. — Perhaps I have not gone even far

Want of touch enough ; I feel that there wants to be a touch between this community and the central

Mr. H^ Jennings' Evidence. 235

beaeech the Government to take evei^hing into consideration, and to take the point I
have made into consideration, and, without giving us full rights, to see that it is to the
greatest good of this Republic to bring us into touch with each other, and to give us
the greatest possible rights at once.

. You are now entering upon a point which is not open. for discussion, and what
you want to discuss is not wnat you have put down on your statement. What you
ask for really is the lessening of import duties, railway tariff, the cheapening of living, The nUef Mked
and for cheaper dynamite. These are the reliefs asked from the Government Now ^'
yoa say, even if you got all that, that within a short time you will still come up again,
and that the same feeling of unfriendliness will remain, and other questions will have
to be discussed. Now if they cause " unfriendly feelings and hatred," how can I
aaenime that if you get all these and come back with others, and they are granted, the
same feeling will not remain ? — We feel we have in this Commission an exceptional
chance — the most exceptional I have known for seven years. We have the ear of the
Qovemment and the kindly consideration of the Chairman. Are these Commissions Beneiicui effeei
to be of all time ? We want to feel that if we have now asked something that we o'Own^J'rton
may hereafter find inadequate when there is no Commission, we will still have the ear
of the Government

But you say that if these reliefs are granted it will only foster unfriendly feelings
md hatred ? — No ; I do not say that We will be satisfied now, but we may come
back with other requests we don't know of now.

There was no unfriendly feeling or hatred ? — ^I don't say that at all. If I have
worded the passage at all to give the Chairman that impression, it was not my
intention. After all, I mean to say, commencing as well as we have, we should have
a certain political status by which we have a right to come to the Government Now, ^^*^__!J5J"
I don't think we have, and we appreciate the Government for appointing this

We will leave this point alone. I only want vou to understand that it would
have been better left out of your report. — I regret if it has given any offence.

There is another sentence reflecting on the lack of experience of the Government
to deal with these problems. I do not want to discuss this point, but as a burgher of
the State I feel aggrieved at the sentence, and it makes a bad impression on the
Qovemment. — I am not at liberty to discuss that question.

Coming back to the question of local boards. Is the Sanitary Board a success saniury Board,
lere — it is a Local Board ? — ^I have not recommended Advisory Boeurds.

Do you think the Sanitary Board a success ? — ^That is a difficult question. It is
« success in some ways and not in others. I do not, however, know the internal
"Workings, and I am not in a position to discuss it

I only put the question because it is a board established for the well-being of
Johannesburg. It is a local board, established by the inhabitants of Johannesburg —
at least under their government — and lately I have heard several complaints to the
eflSsct that a heavy burden is imposed on the inhabitants of Johannesburg. — I am not
prepared to discuss that; I don't know anything about it.

Mr. Joubert.

Is it not possible for a mining company to put a proposal through the Minister ^^^5°*^. '*•
of Mines and the Superintendent of Native Affairs by which native labour could be *"'

regulated ? On the basis of civilised government, of course ? — ^Well, I am not very
hopeful about making suggestions, unless we have some control in carrying them out

Tou say in your statement, in regard to the laws, that you have nothing to
eomplain about — It is the administration we complain about

S36 * Mr. H. Jehninj^^ Evidence.

But if the law is not properly carried oat there is always somebody to whom ^oa
^^'wma ?f ^ can attribute the maladministration ? — I think we must come back to my origmal
S^'StJmdenT contention that we must have some power over the peraonnd of the administration.

Then the law would not be good if there were not proper control established ?— ^
It is easy to make good laws, and it is a different matter altogeUier controlling them.
But if the law is not properly carried out there is somebody to whom you can
attribute that non-carrying out ? — I have been brought up in a different country, so
that I cannot discuss this in a way that Mr. Joubert would like. We don't ccmsider in
America that we can have the laws carried out unless in ecush district the inhabitants
of that district have some control over the officials of the district.
That is also the case here. — Well, I am not aware of it
^^cebetwera ^ ^^7 ^- ^ Want you to go back now to the question of want of confidence. I
wSTiSiniBSIS- "^^^^ ^^ ^^ yo^» *s a civilised man, if a stranger comes and lives on my farm, and I
duatary. give him cvcry chance to make profit for himself, on whom does the first duty rest to

create confidence — on the owner of the farm, or on the stranger who comes on the
farm ? Who takes the first step towards creating confidence ? — Confidence has to be
mutual.

Who has got the first duty in that respect to create confidence ? — Well, I would
like to see the exact illustration you mean.

Supposing you have got a farm and a stranger comes ; you give him every f acilitv
to live there, and to do well for himself. You want to create confidence. From which
side should it come, from the stranger or the owner of the farm ? — From the side of
the owner of the farm.

But he has given every confidence by giving all these privileges? — But he

demands woi*k from the stranger in return.

^k^en^'a^d Supposing somebody comes on my farm — a poor man. I give him every chanca

the Govern- 1 say : "There is my farm ; you can make every profit you can." He has got his chance,

and he makes every profit he can, but after having made his profit he comes to me and

says " You don't regulate your own house properly. I want to instruct you how to

Sut your house in order." Does that create confidence from his side ? — 1 think Mr.
oubert is giving a very extraordinary case. He is practically giving something and
exacting nothing. I don't see the bearing on our case here at all.

That has got a relation to mutual confidence. — But the mutual confidence we are
speaking of is where we are mutual workers. We don't take and not giva We give
as well as take.

And, according to that, the matter has to be regulated ? — Yes ; but then I say this
analogy is not applicable to our case.

I say it is applicable. You say " If you give us everything we want we still will
come back with some more questions. These will cause bad feeling and dissatisfac-
tion amongst us." How is it possible you can expect from the Government and the
people that, in the first place, everything will be granted, when you already say it
will not help you a bit— that you will still have grievances against us ? You will
still come back with further requests. That stands here in your declaration. — ^Yoa
are pushing me on to what the Chairman did not want me to do — to discuss politics.

That is not politics. — I am not going to take an illustration which is not
applicable to our case and give definite answera

Now, do you think that sentence of yours here is conducive to establishing good
feeling between the old population and the new ? — If it is taken in the spirit I mean
it, I think it should. It was not the intention of the writer to introduce ill-feeling at
all. It was simply to show how, with whatever good intention the Government
wished to deal with us now, and however they may smooth over the sore with a salve,

Mr. H. Jennings' Evidence. 237

until we heal that sore we cannot be thoroughly satisfied. It was done with the ^^^jJgJJJ^^

.greatest kindness, to show the Government — ana I spoke in the same statement that ^evances n

this was a crisis in their history — that they should eive freely and liberally, in order *i***^*^

to make that cure permanent; and I feel, from the treatment witnesses have had

before this Commission, and the statement of the Chairman, that they wanted the

truth from the bottom of my heart, and that they don't want me to trick them into

^ving temporary advantages, and tell them what I don't believe in my heart would

result. And what I mean in this whole thing is that I have been brought up as a

republican, and the great fundamental principle of republicanism in my country

is equal rights ; and, unless the Government is willing to make the uitlander popula- ^^jf^'J^^y °'

tion, which outnumbers the original population, eventually a part and parcel of this population.

republic, it is my candid opinion that, with the very best intentions that you may

have, you won't have the maximum peace and prosperity in this country. I may be

"wrong, and I think that I have taken a departure in this from other witnesses, but I

lave done it with the beat intention and the kindliest feeling towards the original

population of this <;ountry. I want to show them the danger of patchwork, and it is

my belief if they want the permanent peace and prosperity of this country they

must give trust to the uitlander, not unreasonable trust, but trust. In my own

business I find that if I should attempt to run a property by distrusting everybody

«a it that was not of mv little country or place, or whatever it might be, I would not

make a success of that Dusines&

I now speak as a burgher, not as a member of the Commission. According to my
opinion those words put down there in your statement, in black and white, clearly to
oe read by the people, are not calculated to inspire that confidence. — I am only sorry
that the phraseology was different from my intention.

I quite understand that

Mr. Smit

Your declaration as far as concerns its practical side is of the greatest interest,
lut I am sorry you opened up into politics. On the one page of your statement you
^v you hope the Government will take the people into their confidence, and on the
Mowing you say confidence cannot be established, because you have further requests
to make. It is a great pity that should appear at the end of a very able declaration.
7-I hope I have in some way mitigated that by the explanation I have given. I hope
A will in no way interfere with what the Government will do from the testimony of
other witnesses. I gave it simply as an American individual, and with the best
^tentions and on my own responsibility.

Of course I take your declaration as one thing, and your political feeling as
another. Your political ideas cannot influence the good the Commission intends doing
^^ the mining industry. On page 34 you say, " There is no use for the industry and
tte Government to incriminate one another." What do you mean by that ? — I mean
•^I don't say the industry and the Government oflScially have done so — but I mean AigagroniBm of
%t members on each side, more or less, have taken up antagonistic positions. andmiSnJ^-

The complaints of the industry against the Government we have had fully, but
^hat accusations are there on the part of the Government against the industry ? —
I "dl, as I say, I don't think there is any official complaint on either side. It is
indirectly.

From what indirect complaint ? — It is written in newspapers. They get inter-
"^ws from your officials, who say the whole trouble here is all ours and that sort of
thing. I mean to say that a section of the Press say tlie whole trouble is on the

238 Mr. H. Jennings* Evidence.

Government side, and the other section says it is on the uitlanders' side, and certain,
prominent people on both sides talk about it. That is what I mean.

I would like to have a direct answer. You should not give an indirect answer..
The complaint before us is that the railways are too expensive, dynamite is too
expensive, the Government does not carry out the Gold ana Pass Laws, €uid also the
Liquor Law. These are accusations directly against the Government. Now, you say
the Government has also made accusations. Now I want to know what accusations
are made against the industry. — I say, directly and officially as a Government, none».
but I say as far as I can learn from newspapers, some high officials of this (Govern-
ment have made statements against the mining industry and how it is carried out^
This is a question I don't want to go into detail about

I did not expect you to take notice of what is put in the newspapers of things dt
that description ? — Well, that is my meaning.
*Boombudffeto" You havc tncutioned in your declaration ** boom budgets " and " boom estimates."*
^iover-flou- j ^3^^^ y^^ ^ quotc a boom budget ? — What I mean by a boom budget is a boomt

amount of receipts and an immense expenditure, and I think that the fast budget of*
that kind, as given in the Chamber of Mines' report, shows that. That is an.
excessively abnormal budget.

Now, do you mean to say that if the inhabitants of the State make false and.
excessive flotations, by which means the income of the State itself is inflated and
increased, and when the State is ignorant of the over-capitalisation and over-flotation,
then the State ought to leave alone public works and public expenditure that may be^
necessary because there is a mismanagement of finance by their subjects without the
State's knowledge? — I am not taking the motives of the Government, I am not
taking our own motives when I made that statement. What I mean to say is if there
has been an excessive amount of money invested in this country, the Government get
a share of it, and make their expenditure accordingly.

How can you say that the Government are accomplices, so to say, to over--
flotation, &c, when they did not know there was such a thing? — ^I say they are
partners in it ; they share in it ; however it is brought about they share in it. How
has the revenue been increased except through this industry here ? I will tell one of
the reasons that I wrote that. It was that at the time of the first evidence brought
before the Commission, Mr. Joubert spoke about wanting to get at the wrong
flotations, and I did not know how far that policy would extend when I wrote that
I wanted to justify the industry. If there has been over-flotation here, the Govern-
ment get their share of it in import duties, from prospecting licences, from railroad
carriage, and everything in connection with the company. Thev are partners. T
don't want to blame ourselves more than the Government. 1 am taking both
together.

You really mean to say this much, that the Government was a partner, thougb
not necessarily parties to it ? — That is what I have said here [referring to Kis-
declaration,] " There has been a partner to it." That is what I say in EnglisL
b^r^l^tionof About the expropriation of the railway. Supposing the mines are met as mueh
as possible through the lowering of the rates, on-loading facilities, and all that kind
of thing, would you even then still insist upon the expropriation of the railway?—
Well, there is this about the expropriation of the railway. Neither the Government
nor any of us have any control over its workings, and the tables that I gave are so*
very much different from the rates of my own country that I think them abnormaL

That I can see for myself. It is unnecessary to go further into that I knotr
the Netherlands Company's rates are much more expensive. Of course, you know it"
cannot be brought down to the level of American railways ? — ^Not at onca

Mr. H. Jennings' Evidence. 239

But supposing it was brought to the same basis pro rata, taking into consider-
ation the cost of wages there and here ? — You have a constant factor which, I think,
is detrimental to the population and the Republic in that. If the railroad made a
litUe too much, and it all went to the Government, we should not feel it so much. If
(he railway company were doing the thing at their own risk, it would be another
matter, but the Government have practically financed them, and yet do not have
control over the railway. Then, I don't see in what way the Government can have
control over these people except in keeping them within the maximum tans', and the
company are not going to make any other arrangements with the Government unless
they make money by it.

That we don't know. If the railway was in the hands of any other factor, it
would be allowed to exist so long as the tariff was reasonable ? — I don't care in whose
hands it i& With its present constitution, I don't think it is in a position to give the
maximum benefit to the country or to get the lowest possible working expenses.

Would you approve of the constitution if the Government were to expropriate ?
—If the Government were to expropriate it would bring about a better state of
thinga It gives all the profit bacK to the Government The Government then, if it
sees the necessity of the community, has the power of lowering rates, which it has not
1^ present.

The tariffs have already been lowered. — The whole thing comes back to the ^J^toSe *"**
pinciple of concessions, ana I say you cannot get the same good work out of a
eoneession as you can with free trade. That is my opinion.

You do not want to answer the question ? If the tariff is reduced you still want
the railway expropriated, and I make the deduction you only want it expropriate
because you do not want to see it in the hands of a company, and because in
America the railways are in the hands of the Government, and every railway construction
eompany has a concession ? — No, they have no concession. SdtSTsSte*

Can everybody make a railway who likes ? — Yes, they can go in competition rmUways.
with other railways.

Supposing you want to construct a railway, have you got to get the consent of

the original railway company ? — If it is on Government property, of course they

would not have the right to run along the section of line already constructed, but they

■ *^ *^PP^y> *^^ ^^^ ^ railway 50 or 100 miles from another point if they thought it

woula pay.

Now, supposing the railway be constructed on Government ground, as well as on

K'vate groimd, from whom does the company obtain its right to construct the line ? —
e company, as I said before, applies to the Government, and they give them the
right, provided they show their bcma fides, and their ability to build the line.

And the Government gets the right to control the line, and regulate its tariff? —
Yee, but it does not prevent other people who apply to run a line close by. That is
the great difference here ; if we were empowerea to run a line parallel with the present
o&e, it would be another matter. I believe there is no other company except the
Netherlands allowed to build railways in this country. You see the whole principle
d American trade and the American railroad system is internal free trade — anylxxly can
Ittild railwaya There is no trade monopoly granted in America. If a tariff is put on
(o protect any industry, any amount of other industries would spring up, and no one
Qjanufacturer or company is given preference over another. That is the whole
diflSeroQce ; and it is a great difference.

Can anybody build a railroad parallel to an existing railroad ? — I do not know
ttadJy the distaiice they should be apart, but parallel lines in America have been very
dose to each other.

240 Mr. T. H. Leggett*s Evidence

nr.wddeibergri You Said this momine: th4t Mr. Middelberg threw dust in the eyes of the Com-
mission. I take that to mean he told an untruth. Can you point out anything in his
statement that is an untruth ? — I did not make the statement that Mr. Middelberg tokl
an untruth. I said it appeared to me he threw dust in our eyes.

In what portion of his declaration is there anything that appears to be incorrect
or untrue ? — I have not made a careful study of his evidence ; and I do not say he
stated any untruths; but, to me, what seemed a very curious thing was h^B starting off
with the tenant and house business. I do not say tiiat there was any untruth. That
was a clever way of bringing out his point, but it did not seem to me logical or
perfectly fair, and that is what I mean by throwing dust in our eyes. He left out a
very important factor in the illustration of the tenant and the house. There are two
principals engaged in it — the owners and the tenants, but the tenant was a forced
tenant not a free tenant, and one of the so-called principals was only an agent, and we,
as the poor tenant, can fall back on the Government for redress.

I only made the remark, because, if there were anything that was an untruth in
the statement, I wanted to know it. — I do not say it was an untruth at all ; I mean it
was very cleverly put

There were some other clever people before the Commission as well as Mr.
Middelberg.

Cliairman.

I feel myself called upon to thank you for your exhaustive evidence, and specially
because you gave yourself the trouble to give the Commission a printed translation,
V^hich made it very easy for the Commission to follow your evidence ; and, as far as I
can see, your statements with regard to the working of the mines, and the figures given
by you, are very exact. Your statement has given us a clearer insight into the working
of the mines than all the previous statements. As regards the other part of your
evidence, about which we had a discussion this afternoon, I feel assured you have
given your honest conviction and feeling; and I believe that the interchange of ideas
will perhaps lead you to other thoughts, and will also give me thought for reflection ;
and perhaps it may be for the public good after all. — I wish to return my sincere
thanks to the Chairman and M^embers of the Commission for the patient and fair
manner in which my testimony has been received.

-Mr. heggett'B Mr. Thomas H. Leggett, Consulting Mining Engineer for S. Neumann & Co,
evidence. ^^ ^^^^ Called. He Said he had been twenty months in the Transvaal, and

prior to that time in America. He proceeded :

In coming before you, it is not my purpose to go over the ground already well tri-
versed by men who have been longer in this country, and are therefore more thoroughly
acquainted with its condition ; but I am in hopes of presenting to your notice one or
two matters that have come within my experience, which have a direct bearing upCD
Railway rates, the mining industry of the Band. The matter of railway freights has been gone inlo
very completely, hence I have little to say about it other than to di-aw your attention to one
particular shipment of mining material recently received from San Francisco, whioh
has, in fact, reached here during the past month, and upon which I have been able to
get the different charges from the Pacific coast to Johannesburg. These are set
forth in the table marked "Exhibit A," which 1 hand to you for inspection. The total
weight of the shipment was 9 tons, and you will note that the per-ton mile rate froo
San Francisco to New York, which is something over 3,000 miles, was 0'28d.; tli0

Mr. T. H. Leggett's Evidence. 24i

oeean freight from New York to East London was 0*1 7d., being somewhat higher than
usual on account of the bulky nature of the freight; the Cape Government and
Onmge Free State charges for haulages of 286 and 328 miles respectively, were
identical, namely, 2'27d., or exactly eight times the rate on the American railway for
one-fifth of the haul ; while the Netherlands Railway charge was 7*45d. per ton per mile,
or nearly 27 times the rate in America, and for a haulage of only one-sixtieth the
distance ! You are doubtless aware that, in this haulage across the Continent of
America^ there are hundreds of miles of country very similar to that traversed
by the railroads of South Africa, while the altitudes to be surmounted exceed 8,000 ft.
above sea level ; and further, on many of the freight (or goods) trains, the engines
have to be doubled in order to surmount the heavy gradients. Even the lack of
railway competition in this country can hardly be considered as accounting for this
tiemendous difference. In short, the Netherlands Railway charges are out of all
reason, and can be considered as nothing short of absolute extortion. In reference to
this particular shipment, the agent in Johannesburg informs me that one portion of
it was delivered at the Johannesburg Goods Station, and the other portion, approxi-
mately half, at Elandsfontein. At Johannesburg Station he was charged 1^ per cent,
duty, but at Elandsfontein he was forced to pay 7^ per cent, "hn exactly the same
^[oods. He naturally made a protest to the Elandsfontein agent, who in turn referred
It to Pretoria, receiving instructions in reply confirming his charge of 7 J per cent. It
would seem as if a very substantial error had been made in this particular, and it
emphasises the necessity which exists for the Government taking over the railway,
ana giving it that thorough and systematic administration which is so urgently
needed. With respect to the direct taxation of the mining claims by the Government, ^^cee **^'"
it first sight these do not seem excessive. Nevertheless, a comparison with the
ehaiges which are made. in other republics in America may be worth making. For
instance, what does it cost in the United States to obtain title to mining property ? ^^nSng**c£am
The expense of locating, i.e. pegging, the average-sized claim of 600 x 1,500 feet i" united
(eq;ual m size to 15'62 Transvaal claims of 400 x 150 Cape feet), together with ***^*
recorder's fees, is approximately £10. Title in fee simple or freehold can be obtained
from the United States Government on payment of £100. To this must be added the
eoBt of surveys, maps, and incidental expenses, increasing the amount by about £50
B»re. In other words, by a payment or £160 one obtains absolute title to 900,000
square feet of mining ground, which may be worked or allowed to lie fallow for years, woihuter claim
at the option of the owner. Let us compare this with the cost of the licences paid bv "*^®"°^
such a property as the Woihuter, consisting of a mining area of 171 claims. Tlus
company paid during 1896 the sum of £519 10s. in licences, which is about its average
umoal payment. In the United States this amount of ground would be covered —
not, of course, in actual area, but bv virtue of the mining law of the apex — by two
IW foot claims. The cost of acquiring perpetual possession or the freehold of this
ground would be £320, or only 61 per cent, of one year's payments on a mining
property of equal size in this country. The Spanish- American republics are equally uc^ncea Sn a!
avourable to the development of the mining industry. Their claims are bounded by ^™**^**-
vertical planes, as is the case on the Rand, and the Government charges are very
nmilar to those which prevail in the United States. I do not know that any com-
riaint has ever been made on the score of too heavy charges for mining licences, and
I do not make this comparison in any carping spirit, but merely to draw your atten-
tion to the policy pursued towards the mming industry by other republics, who
HQcq>t as an axiom the principle that the success of this industry conouces to their
own prosperity to a greater degree perhaps than that of any other. The matter of
tike rasa Law has been thoroughly well ventilated. The question of the cost of Nativt labour.

242 Mr. T. H. Leggett's jBvidence.

natives delivered at the mining properties, so to speak, is to my mind a serious item.
In one mine that I am acquainted with, not a very lars^e property, having a mill of
40 stamps, the payments on this account during the past year, after deducting the
amounts subsequently refunded by the *' boys," totalled £2,663. Now, inasmuch as an
average of about 390 natives were working at this property during the same period,
this comes out at a cost of over £6 16& per " boy.' This cost divided over the tons
crushed for the year, gives a charge of 68. 8d. per ton. At the Wolhuter Gold Mine
in 1896 the cost of procuring native labour, after deducting the amounts subsequently
refimded by the kaffirs, equals £5,448 10s. This works out at a cost per ** ooy " ci
£3 6a 4-8d., there being 1,641 " boys " employed on the property. Spreading this
(diarge over the tons crushed for the year, the cost comes to 98. 5d. per ton. I think
Comparative you wiU admit that these charges constitute a very heavy burden upon the mining
S**'<>Sfomi2l industry, and trust you will afford us your aid in remedying the matter. What I
Mjd Band gold ^jg^ most to draw your attention to, however, is the cost of working in the United
States mines, which are similar to those of the Rand, more especially those of Cali-
fornia, where the veins are of a width similar to the banket beds of this district, and
the mines are of even greater deptJi. The data contained in the sheet marked
'' Exhibit B " will be of interest in this connection. The costs of working such mines
as these can, with all fairness, be compared with our own working costs on the Rand,
inasmuch as the types of the ore deposits are similar, or rather, I should sav, that the
methods of mining a (|uartz vein, 3 feet to 4 feet wide, and dipping at 40 aegs. to 50
degs.,are precisely similar to those employed in working the banket beds of the Rand.
You will note that the poorest mine in this list, with a yield of only 23s. per ton, pays
a profit of 13s., when working at a depth of 800 feet to 1,000 feet ; and the average
grade ore of 27s. to 30s. gives profits of 9& to 12s. per ton. The main items that
enter into the cost of mining operations may be summarised as follows: — (1) motive
power ; (2) supplies or stores ; (3) labour. These must be taken in connection with
the character of the ore deposit, in which the hardness of the ground to be broken, the
width of the ore body, and the amount of water to be handled are the chief considera*
tions. I have been unable to obtain the itemised working costs of the properties
mentioned in " Exhibit B," but from my experience of mming in Califomia I am
largely familiar with the general features of the mining costs there. In regard to the
cost of motive power in this country, the item is considerably in excess of that of
Califomia, and this is largely due to the fact that water-powers are numerous in the
Sierra Nevadas, and are utilised either directly or by means of electricity. Where
these powers do not exist timber is usually plentiful. In this respect I think that our
Rand mines will show up more favourably within the next year, inasmuch as I believe
that you are becoming convinced of the high cost of our coal, due to excessive frei^t
ohargea In the matter of stores the same condition exists, namely, a highly increased
cost, due largely to excessive railway rates in the Cape Colony and here. In tins coo*
nection I would submit a statement showing the costs of the chief mining supplies m
the extensive mining camp of Butte City, Montana, for the year 1894, and the cost of
similar articles in the Transvaal at the present date. (See " Exhibit C") Butte is ts
inland town, situated in the heart of the Rocky Mountains, 1,000 to 1,500 miles awaf
from the sea coast, and over 2,000 miles from the source of supplies of drill sted,
roimd iron, piping, etc From this table you will note that dynamite costs i»
Johannesburg 3^ times as much as in Butte City, and even with equal percentages of
nitro-glycerine, the proportion of cost would be about as three to one. Detom^tori
cost 1^ times as mucn in Johannesburg as in Butte City ; and drill steel is 20 per cent
more expensive here. Common iron costs 44 per cent, more than in Butte, ead
Norway iron 60 per cent more ; 3 inch pipe is 68 per cent more costly in JohaniMr

Mr. T. H. Leggett's Evidence. 243

biu^, and 5 inch pipe is one-third higher in coet Timber can be obtained in Butte

ior one-seventh the price demanded here. Mining dtuUs cost us here three times as

Tnnch, while lagging poles are thirteen times more expensive. After a haulage of 450

mOefi from R^ky Springs, Wyoming, to Butte City, coal costs slightly less than it

does on the Rand with an average haulage of 28 milea I have faim that in this also

joa will apply the proper remedy. The mining conditions are very comparable,

«8 shown by the width of the veins in the list of mines in "Exhibit d" and

the depth at which they are being worked. In so far as the hardness of the

j^ond is concerned, the Califomian mines as a rule have a considerably softer

material to work in. This, however, is largely offset, and in some cases more than

counterbalanced by the much greater amount of water to be handled, and it is a

perfectly fair conclusion therefore, that so far as the natural conditions of the deposits

on the two countries are concerned, a comparison of the costs incurred in working

tliem is a fair one. The item of labour comes next, and here I think we shall have

«ome instructive matter for consideration. You will note that the Plumas Eureka

iftnd the Sierra Buttes mines, having mills equal in capacity to but 30 and 40 stamps

respectively of the Rand type, employ from 230 to 250 white men, or from six to eight

imen per stamp. This is three or four times the number of white men per stamp

^employed on the Rand, the difference being offset by the use of kaffir labour. The

wages paid to these men in California are 2^ to 3 dollars per day, or roughly from

1Q& to 12a This is a little more than half the average price paid for white labour

iKk the Rand, and considerably less than half where contract work is done, and it must

lia remembered that contract work prevails here very largely. The salient feature is

to be found in the fact that, notwithstanding the employment of white labour at the

•above rate of wages, mines which would just about pay operating expenses on the

Band are made to yield a large profit in California. We nave found that the natural

'Conditions of the ore deposits in the two countries are similar, and the disadvantages

that exist about balance one another. The greatest differences in the cost of mining

<)perations in the two countries lie in the cost of motive power, of djmamite, and other

iitores, and of labour. In the reduction of the first two items we count confidently

upon your most necessary assistance. In the matter of labour we know that in ^rj^j^^ j^^^o^ i^

CUifomia we have largely the same class of miners as are to be found on the Rand ^^'^^^^ *^

to-day, namely, Comishmen. Why is it, then, that these men are willing in one

^nntry to accept half the wages that they require in the other ? I think the answer

^ be found in the simple fact that in America these men go with the idea of settling

permanently. They become an integral part of the country. They say to themselves,

"This country is good enough for us and our children." Their margin of profit at the

above stated wage is almost equivalent to their margin of profit in this country, due

chiefly to the differonce in the cost of living. But, above all, they realise the fact that

they have gone into a country in which they intend to stay and make their home.

£ere, on the contrary, the aim of nine miners out of ten is to accumulate sufficient

ittoney to leave the country, which is not the country of their adoption, as in other

^piibiic& And, gentlemen, until it is made so, until the labouring man — who is the

■back-bone and sinew of any industry — becomes an integral part of your country;

^Qntil he feels that he can settle here and obtain for his family the necessaries and

topifort of life, without this feeling of being obliged to save money in order to get

«way — ^until this condition of affairs prevails, we cannot hope to reduce this item of

tost to a figure comparable to that which obtains in the United States. Mr.

Jeonings has shown you what has been don^ with black labour in other countries,

^ has pointed out in a clear and forcible manner the latent possibilities of the kaffir,

^d what we may justly expect of him when properly trained. The point which I

Derel
deep

244 Mr. T. H. Leggett's Evidence.

coK>peration of wish to emphasise is, that in the matter both of white and black labour we are
necm[o'°^for dependent on your active co-operation ; in the matter of white labour to so alter the
Jj5J,^,^^o^; conditions surrounding the white workman that his wage may be reduced without
supply. impairing the margin of profit which he now receives, and which all acknowledge to-
be out a fair recompense to the efficient labourer ; in the matter of kaffir labour, to-
increase the supplv so that it shall be adequate for the entire fields, and at the same*
time to so control it that we may succeed in increcusing the kaffirs' efficiency, audi
opment of extending the scope of his work. I do not know whether you quite realise the great
pieveia. Importance of the development of the deep level mines of the Band, and the bearing;
wmch the successful outcome of this work will have on the future prosperity of the^
country. By deep level mines I do not mean such mines as the Geldenhuis Deep,.
where the shafts cut the reef under 1,000 feet in depth, but I refer rather to those
properties where the reef lies at a depth of 2,000 to 3,000 feet from the surface, which
properties require the expenditure of a large amount of capital, and the exercise oit
the part of the shareholders of a great deal of patience oefore any return can be
expected from the outlay. Boughly speaking, in such deep level properties you have-
more than double the area of groimd of the outcrop companies. It will readily be
seen, therefore, that if these deep level reefs can be brougnt to the productive stage,
and made to yield a profit, not only will the original faith of those investing in these
fields be verified, but the prosperity of the country will also be greatly enhanced. I
^^?lSe8*"?ro^m ^®^® submit a diagram of the deep level shafts now sinking upon these fields^ showing-
outer od of the depths at which they are estimated to cut the reefs, €uid the horizontal distances-
eep leve gouth f rom the Main Beef outcrop at which they are located. This diagram showB^
that within the first 1,000 feet from the outcrop there are 8 shafts = 13%

1,000 to 2,000 „ „ „ „ 25 shafts = 40%

2,000 to 3,000 „ „ „ „ 12 shafts = 19J%

3,000 to 4,000 „ „ „ „ 4 shafts = 6i%

4,000 to 5,000 „ „ „ „ 8 shafts = 13%

5,000 to 6,000 „ „ „ „ 4 shafts =:6J%

6,000 „ „ „ „ 1 shaft =1J%

The last shaft has to go through 3,318 feet of ground before reaching the reef. We —
have a parallel instance of faith in the value of deep level mines in the case of the

^^mtoe. **^ Tamarack Copper Mining Company of Michigan, which company sank a shaft o^^
2,300 feet deep before cutting the copper-bearing lode, spending thousands of poundsi^
on that operation, and waiting nearly four years before the mme became a producer.^

^^***'if ndne"" '^^^^ mine started crushing in 1886, and has been a steady producer ever since. It
to-day five deep level shafts, and their total depths in the early part of 1896 were

follows :— No. 1 shaft, 3,232 feet ; No. 2 shaft, 3,535 feet ; No. 3 shaft, 4,450 feet ; N
4 shaft, 4,450 feet ; No. 5 shaft, 226 feet. This No. 5 shaft will be connected on thj
27th level (3,920 vertical) with shaft No. 2. It will intersect the reef at 4,700 vertical,
and is of five compartments. At present this mine has one stope, working at a deptli
of 4,500 feet, accoi-ding to the 1895 issue of the "Mineral Industry, its Statistics^
Technology and Trade, ' to which publication I am indebted for many of my %urea

Dhidends and The total dividends paid by this property to the close of 1895 were 4,700,000 doUan^

o^^ xS^a^rack or £900,000, with mining ore worth from 208. to 22a per ton at a depth of 2,200 to^

mjne, 3,200 feet. The working costs of this property figure at 168. per ton, showing that

even when mining at this depth the average profit in 1895 was 5s. 6d. per ton. I

attach statements marked exhibits " E " and " F ' showing the costs at this property

Atlantic n ine. f or the ycars 1888 to 1894 inclusive, as also those of the Atlantic Mine, which is aa
outcrop company in the same district, and working during the period mentioned at a^

Mr. T. H. Leggett*s Evidence. 245

depth of 850 to 1,250 feet This latter property is one of the best managed in the ''^^"•^ua^'tf'

world, as it is making a small profit on an extremely low-grade copper ore. The mine.

average value of this ore for the year 1895 was 6s. 3d. per ton, upon which they

aetaaUy made a profit of 1& 4^d. This mine is, however, eui exceptional instance of

remarkable economical management. It has also easier CTOund to mine in than the

Tamarack. I have drawn up a statement, which I here submit (''Elxhibit O"), showing

the total mining,including siurf ace expenses, of three outcrop mines in this copper district,

in order to be able to make a comparison with the costs of the Deep Level Tamarack

Mine for the same period of six to seven yeara The mining costs of these outcrop comparative

mines, namely, the Atlantic, Allouez, and Osceola, including surface ex{)ense8, average ^ AfioueiL

5fi.2^d. per ton; the same costs for the Tamarack Deep Level are 9s., showing an increase ^^^ '^"^

of 3s. 9^d., which increase may be said to be due to the greater depth of mining, crop, and

These costs exclude transportation €md milling, inasmuch as the method of reduction deeV' level

of copper ore difiers from that of gold ores, and further, the reduction costs are not ™^^-

affected by the depth from which the ore is extracted. I have worked out the minins^

eosts (including development work) of 22 Rand companies, which show an average of Avenffeworidog

ITsL 7 Jd. Mr. Jennings has just submitted to you a statement, including a ^eater Bandoomw^

number of companies, 29 in all, in which he shows this cost to be 17& 7*1 2d., idiich is !«•

nearly double tne costs at the Tamarack mine, where they are stopin^ to-day at a

depth of over 3,000 ft We, of course, have no mines working at sucm depths here

with which we could make comparison with the Tamarack, and the question arises

whether such comparison would oe a fair one from a mining point of view. To this comparison of

question I answer, yes ; inasmuch as every indication thus far goes to show that upon StiSSoi iSSd

the Rand the natural conditions will be quite as favourable as they are in the copper ^ Michigan

districts of Michigan ; in other words, that we shall have no disadvantageous increase ^

of temperature for several thousand feet in depth, no undue amount of water, and

probably even less timbering to be done than is required in the deep level mines of

that district. Hence, the mming conditions admit of comparison, but of course it

most be borne in mind that in the Michigan mines they are working on a lode 12 ft.

to 15 ft. wide, which width is an important factor in the cheapening of mining costs.

If they are to-day extracting in the United States ore that is worth 21a 6d. per ton,

from a depth of over 3,000 ft., and making a profit of 5a to 6a upon it, I would ask —

is not the same thing feasible here ? Given proper conditions, it certainly is feasible ;

Imt, under present conditions, we cannot even make an outcrop mine of that value of

tm yield a profit We have a number of deep level mines on the Rand to-dav which

tte unquestionably of much better grade of ore than this, and which will yield a fair

margin of profit. I wish, however, to direct ^our attention to the very large area of

medium-grade reef which, if the local conditions are favourable, could be made to

yield a profit Experience gained in the deep mines of the copper district makes it

reasonable to expect that, when mining here at similar depths we shall have an

increased cost, due to that depth, of approximately 4a per ton. On the other hand, if

in the United States, in a district where the mining conditions are similar, ore can be

mined at this depth and placed in the mill for 9a per ton, is it not reasonable to

expect that conditions may be so altered within the next few years in this country as

to enable us to do the same work here for 15a to 16a per ton, even with our

narrower ore bodies ? It is true that the Tamarack crushes 392,000 tons per year, TomMgeoniahad

bat the Simmer and Jack Mine is to-day been equippNed with a 280-8tfibmp mill tLJaSSff

capable of crushing over 400,000 tons annually, and it is certain that in handling i^^ J*o>^

medium-grade ores, if we would obtain a profit, we Tmist crush in large quantitiea U,

we contrive to mine the deep levels in tne near future at the fi^re stated, we can

make a reasonable profit on our medium-grade ores, and, in this event, will make

246

Mr. T. H. Les:s:ett*8 Evidence.

productive an immense area of deep level ground, and the life of the industry will be
assured for many decades to come. This is the immediate and burning questicm

Medium - grade to^y — how to make our medium-grade outcrop mines payable ? But this ia
outcropm nes. jj^g^pg^pg^j^jly connected with the future of the deep level mines. If we can obtain such
reductions in working costs as to render mines yielding 25s. to 30s. per ton profitable
investments, we can then look forward confidently to obtaining profits on a similar
grade of ore in the deep levels. I appear before this honourable Commission as a
citizen of a sister republic, and in so aoing am animated by none, but the friendliest
motives. I feel that I cannot more fittingly conclude my remarks than by reminding
you of the memorable words of President Steyn, when, in his address to the

^°S?3Kde??- Legislature of the Free State on March 11, 1896, he said :— " Here in the Free State,
President where wc have raised the banner of republicanism, where from all quarters strangers
^°" are coming to us, is it not a glorious task to incorporate these strangers with us and

amalgamate them in one republican people." Gentlemen, I cannot embellish so wise
and true a statement. I can only commend it, and the principle that underlies it, to
your kind and most earnest consideration. Finally, I beg to express the hope that
the evidence which has been submitted here may convince you that the futiu^ of this
country — not for the next 10 years, but for many times that period — lies in the
economical and successful development of the deep level properties of these fields. I
believe that a grasp to-day of the conditions that are essential to such development
will lead this country to a prosperous, and even brilliant future.

Exhibit A.

•

Tabular cort» of Table showinff cost of 9 tons of

imported min* . * -r i i^

ing material dowu m Johannesburg : —

mining material

(bulky) from San Francisco laid

fromSanFnm-

•

Per-

Pcnentagt

Cisco.

ToUl

Oo(t

cenUge

of price

cart.

per ton.

ottoUl

in San

£ & d.

£ 8. d.

coet.

Franciwo.

Price in San Francisco, F.O.B.

166 9 6-2

18 9 11'2

44-99

100-00

Freight, San Francisco to New York

31 14 10-3

3 10 6-5

8-68

19-07

Cartege, insurance, fees ...

7 11 10-6

0 16 10-6

206

4-56

Freight, New York to East London

58 1 20

6 9 0-2

15-69

34-88

Port charges and landiug
Freight,lS«tLondon to Johannesburg

14 18 110

1 13 2-5

4-04

8-98

66 19 100

7 8 10-5

18-11

40-24

Transvaal duty ...

12 18 30

1 8 8-3

3-49

7-76

Cartage to mine

9 17 6-0

1 1 11-3

2-66

5-93

Exchange ... ...

1 9 OO

0 3 2-7

0-38
10000

0-87

Total

370 0 100

41 2 3-7

CHARQEa

222-29

Analysis of Ocean and RR

DisUooe

Total

Pwcenteire

Bstapw

•

TnuMDorted.
MOm.

ObuveaL
£ 8. d.

of total
charse.

tann«radlt.

RR, San Francisco to New York

... 3,000

31 14 10-3

20-24

0-28

Stea.mer, New York to East London

... 9,000

68 1 20

3703

0-17

Cape Government Railway

... 286

24 8 8-2

15-67

2-27

Orange Free State RR

... 328

28 0 6-3

17-88

2-27

•

14 10 8-5

9-28

746

Total

• ••

12,666 166 15 lOS 100-00

Mr. T. H. Leggett's Bvidence.

247

Exhibit B. — Sierra Buttes Mine, Sierra County. — Depth of mine, 1,000ft. ; working corts or
4iTerage dip, 45dega Two mills, 50 and 60 stamps respectively, equal in capacity to m£^ w^
•about a 40-stamp mill on the Rand. Six montns crushing, 29,243 tons, yieloing
189,1 96dols.=6*47dols. per ton=£l 7s. ; mining, 3'85dols.=16*04a ; milling, •45dols.=
1*968. ; total costs, 18s. ; profit per ton, 9s. The average yield of the ore for ten years
was 7dol8. per ton=£l 9s. 2d., yet thejr disbursed in dividends l,360,288dola=
£272,000. The number of men employed m mine and mills averages 250.

Plumas Eureka Mine, Plumaa County.— Depth of mine over 1,500ft Dip '^g^*^^
^7deg8.; width of vein, 3Jft. (average); 60-stamp mill=30-stamp mill on the Rand, "»*"«» u.8.a.
men employed, 229 ; in six months crushed, 27,789 tons; yield per ton, 7*27dols.=
£1 10s. 3d. ; cost mining and milling, 4*32dols.=18s. ; profit per ton, 12s. 3d.

Zeile Mine, Jackson, Amador County. — Ore yields 5'50dols.=£l 3s. per ton; woridngcwtaof
tofits, lOs. per ton ; profit per ton, 13s. ; depth, 800 to 1,000ft. ; vein, 3 to 4rt. wide ; uaa!
crashing, 120 tons per day, 40 stampa

Plymouth Consolidated, Amador County. — Vertical depth of mine, 1,500ft; 120 working coetB of
stamps crush 250 tons per day; yield per ton, 13 dols.=£2 14s. 2d.; costs mining, M^S^tod^^ne
3-20dola=13s. 4d. ; milling, •69dols.=2s. lOd.; total costs, 3-89dols.=16s. 2d.; profit ^-^-^
per ton, £1 188. The annual report shows — Gold bullion produced, 1,033,518*29 dola.
=£212,658; operating expenses, 331,163*84dols. =£68,141 ; profit, 702,354*45dols.=
£144,517; twelve dividends paid, 600,00000dols.= £123,456; surplus carried over,
102,354*45 dols. =£21,061. The management and general office expenses are not
obtainable for the above mines. They would increase the costs about 2s. per ton.

Exhibit C. — ^Table showing Prices op Supplies

At Butte, Montana, U.S.A., in 1894, and at Johannesburg, Z.A.R., in 1897.

Material.

Djiiamite per case of 50 lbs.

Detonators per box

f'nae per coil of 25 feet

^dles (16 ozs.) per box of 25 Iba

Ml steel per lb.

ion (common) per lb...

ton (Norway) per lb. . .

Kpe (3-inch) per foot . .

Kpe (5-inch3 per foot ..

timber per cubic foot . .

Stalls per inch of diam., and 1 foot of

I«ffiing poles per foot of length

Cod per ton, 2,000 lbs.

faj 40 per cent.
fbj 70 per cent.

length

Butte
1894.

£ 8.

Johumeabarr,
18»7.
£ (. d.

...(a) 1 3
0 13

rb) 4, 5 0

10 0

0 0
0 12

0 0 4|
0 10 9

0 0
... 0 0

0 0 5i
0 0 2

0 0

0 0 4

0 1

Old

0 2

0 2 10

0 0

0 4 1

0 0

... (c) 0 19

0 0 OA
0 0 3i
(d)l 0 0

Oomparmtive'nii-
im>lif
at Butte, MOD-

oes of •UDpliee

fej Includes 450 miles of railage.
fdj Includes 28 miles of railage average.

.8.A.,
and Johanne*'
harg, S.A.R.

248

Mr. T. H. Leggett*d Evidence.

Exhibit K — ^Analysis of Expenses, 1888 to 1894— ATLAimc Mine.

1888tol8M.

"SSSirSK! Cob* of ai"- ^r^^- «*?• <«) -
UJB.A., from Cost of fuel lOF enginos ...

Other underground expenses

Other surface expenses ...

Total running expenses at mine

Transfer to mill and stamping
Total running expenses . . .

Construction

Total, including construction
Smelting, freight, and marketing
Total cost, less construction ...
Total expense to market ...

18M. 1888. 18M. 1»1. 1800. •

Cents. Oente. Oente. Cents. Oents. Cents.

104

3/llld. 3/3id. 3/6d. 3/llld. 4/44

88
3/8d.

3/6<L

26
102

28
108

4/3d. 4/6d.

28 29 31 31 30
112 125 135 119 114

4/84 5/2|d. 5/7id. 4/11^4 4/94

45
146

17
119
165

34
142

18
126
160

115

130

133

11
136

18
143
154

10
145

20
156
166

11
133

20
139
153

122

135

143

6/10i4 6/84 5/6i4 6/54 6/94 6/4^4 5/11^4

Thousand tons stamped ...
Estimated average depth ...

... 315 316 301
... 1250 1200 1150

(a) Pumping also included.

297
1000

278 279
950 900

298
850

Tamarack Mine.

Working oo(ta of Cost of air drills, etc.
mine. U.8.A., CJost 01 luel for engines
fron 1888 to Qther Underground expenses . . .
Other surface expenses
Total running expenses at mine

Transfer to mill and stamping
Total running expenses
Construction

Total, including construction ...
Smelting, frei^t, and marketing
Total cost, less construction
Total expenses to market
Thousand tons broken
Thousand tons hoisted
Thousand tons stamped
Estimated average depth

1894.
Centi.

1893.
Omto.

14
19

130
28

191

1892.
Centi.

18
24

134
26

202

1891.
Oenta.

142

26
209

1890. 1889.

Oents. Oenti.

165

151

246 235

OoitL

20
23

140
30

213

7/llid. 8/64 8/8id. 10/3d. 9/9id. 8/lOJd

246
60
306
72
318
378
(cO

360
3100

46
237

45
282

81
323
368
413
369
346
3000

49
221

80
301

77
298
378
392
363
339
2900

47
256
124
380

76
332
456
330
301
283
2800

59 64

305-303 300

05 40

310

107
412
417
182
163
165

340
107
307
447
197
179
169

2700 2600

72
285

01
286
128
413
414
16a
162
144
2500

faj Estimate not official, affecting all the figures in this column.

itounok and ^^ expenses after stamping depend really on the amount of copper rather thao

AtiMiUcmine. on tons of rock. The cost of pumping is included in the cost of' running the air drilb

in the Atlantic mine, but not m the "^maraek. The totals vary two or three cents.

sometimes, owing to neglected fractions, from the results of direct addition. Th»

expense is per ton stamped in the Atlantic mine, per ton hoisted in the Tamarack.

Mr. T. H. Leggett's Evidence. 249

(f) Atlantic Mine. — An outcrop mine. Average depth, 1,300ft. Width of vein, ^JSJS|^*2dL°'
12ft. The record of the output for 1895 waa : Value of ore, 14*61bs. copper per long u.s.a. ^ ^
ton, equal to 073 p.c, eaual to (at 10'52c. per lb.) l'5352dol& or 68. 3d. per ton; cost
of mining, selecting, ana breaking, 0'7525dols. per ton ; crushing and concentrating,
'2220dols. per ton ; transportation (three miles) and surface charges, '0408dol& per ton ;
freight, smelting, and marketing, 'ISSldols. per ton ; total costs, l*2034dols. ; profit per
ton, la 4id.=-3318dols. ; tons milled, 313,058 tons; product, 4,832,4971bs. refined
copper, 508,252dols.= £104,578; average pay of contract miners in this mine for 10
years, 1881-1891, 62'90dols.=£13; average pay of whole force for same period,
51-40dols.=£10 16s.

Tamarack Mine.— Deep Level. Width of vein, 12 to 15 feet. Estimated ^!g;^«^«J
average depth of working, 3200ft. ; one stope at 4,500ft. The record of output for u.sa.
1895 was : Value of ore, 49'721bs. per ton, equal to 2*49 per cent., equal to fat 10*52c.
per lb.) 5dol& 23c. or £1 Is. 6d. Tons crushed and costs not published smce 1894.
Basing an estimate on the figures for that year, tons crushed about 300,000. (Note :
Production cut down 50,000 tons less than in 1894 by accident to the hoisting enmne
at No. 1 shaft, and the encountering of poor ground in the territory tributary to rf o.
2 shaft.) Total operating expense at mine, including transportation and milling,
2dol& 50c., equal to 10s. 4d. ; expense to market, including construction, freight,
smelting and marketing. Idol. 36c., equal to 5s. 8d. — total costs per ton, 16a ; profit
per ton (approximate), 5s. 6d.

ig) Comparison of costs of outcrop and deep level mines in the Michigan copper oomparative
district. Table showing mining and surface expenses per ton milled, over a period of JrJutcfopand
rix to seven years. Does not include transportation and milling. — Width of ore body, ^^^ ^-av^I
12 to 15ft. Outcrop mines. — Atlantic : depth, 850ft. to 1,300ft., 38. 8d. ; Allouez, depth g»n. u.8.a.
over 1,000ft., 5s. lOd. ; Osceola, depth over 1,000ft., 6s. 2d. The average cost per ton was
5a. 2Ji Deep Level. — TamaracK, 2,500ft. to 3,100ft., 9a ; incresised cost of mining
due chiefly to depth, 38. 9id. The Tamarack crushes 392,000 tons of 2,0001b8. per
Mmum. The Atlantic crushes 371,000 tons of 2,0001bs. per annum. The Allouez
crashes 115,000 tons of 2,0001bs. per annum. The Osceola crushes 229,000 tons of
ijOOOlba per annum.

Mr. Sfwlt.

In quoting your railway rates from this Republic, did you only quote rates '^^^^ y **^
l)^ween Johannesburg and V ereeniging, or the whole of the Republic \ — They are igingto/JSS'
only from Vereeniging to Johannesburg. n«bunp.

Do you know the tariff charged between Vereeniging and Johannesburg is
Wgher, 'pro rata, than the money charged by the same company on other lines ? — No.

In making a comparison, you say that workmen have to be paid higher here on ^^J^to^^^nSSe**'
^WJoount of the cost of living here ; but does not the same apply to those working in cm Band.
fte manufacture of dynamite and on the railways ? — But, in the matter of dynamite,
^ Dot a large quantity brought into the country — that is, there is not much labour
^ployed on it.

There is a very great staff of white men. — Is not that a misapplication of energy ? '
'Hiy not put that labour in the countries where the materials and labour are cheaper.

You will, of course, make allowances that dynamite made in this country will
<508tinore money made here than the cost price of that imported? — Unquestionably,
tearefore I object to its being made here.

You have had a lot to do with mines in California ? — Yes.

You say that circumstances are very much easier there than here? — I say so in working: oon-
4e matter of motive power. S^ ^ ^"

250

Mr. T. H. Lesgett's Evidence.

Yes.

Mining pays better there because the motive power and the labour are cheaper ? —

in State.

Mr. Hennen Jen*

Co«t of native
labour supply.

This being so, why didn't you go back to Calif omia when you found that mining;
was so much cheaper than here ? — Most engineers come out here under an engagement
entered into before leaving.
^°SSSS?**^' ^ which way do you propose to make workmen an integral part of the Republic,
ing population and offer them sufficient inducement to stay here ? — I feel that is a question that is better
answered by a statesman of the country. I feel it has a vital bearing upon the>
economic working of our deposits here. Deep levels are a matter for the future, and
I am trying to bring forward to your attention the immediate necessity of makings
workmen an integral part of the Republic, and that to work the deep levels
economically we must unite the bone and sinew in the interests of the countiy.
When did you frame your statement ? — ^The latter part of last week.
Did you, more or less, co-operate with Mr. Jennings? — ^No; my statement is.
nings-evidence ^^^^^ independent of his.

Still you refer to Mr. Jennings' declaration in a couple of instances ? — ^Yes.
You must have known last week what Mr. Jennings would say ? — Mr. Jennings,
read me a large portion of his statement yesterday afternoon.
And you have consulted him about your declaration ? — No.

Mr. de Beer.

You have stated that it cost one of the mines £6 7s. to deliver a " boy " on to the
minea How do you arrive at that ? — By dividing the total cost expended in procur-
ing " boys " by the average number working.

How do you arrive at the total cost? — By the totals paid, less the amount
refunded.

But in what way is the money spent ? — I do not know that.

How do you arrive at your figures ? — I take them from the secretaries* state*
ments at the company's office.

The amount you quoted differs very largely from that by other managers. The
highest fiffure quoted up to the present is £2 to deliver " boys." — ^These are the
secretaries statements taken from the annual report showing thej amount charged to-
that account. I think you will find these figures agree with those given by Mr..
Goldmann.

It is new to me that most of the work, as you have stated, is done undec^
contract ? — " Largely prevails here," is the expression I used.

You think that miners earn much more working by contract than by shift ?

Many miners earn more, and I think Mr. Catlin's statement is in support of that

That is the bonus system ? — I mean the contract system in its broad sense.

I understand by contract work you mean piece-work ? — Literally it does meack
piece-work, but I used the term in its broad sense.

But is it not very difficult under these circumstances to give a correct average at
wages earned by white miners ? — Not necessarily. In any one mine you may
have a given number of contractors, and their pay must show on the pay rolla In
the same way you may take the number of men on day pay ; then it is very easy to-
make an average on the total of men you employ.

But you still don't give the Commission a fair idea of the wages actually earned
when you say that a man in receipt of a salary of £18 a month may earn £50 or £S^
under the bonus system ? — Well, 1 think these figures have been gone into with great
detail by Mr. Sydney Jennings and Mr. Hennen Jennings, and if I remember ri^tly
they gave the average at al^ut £24.

Contract w(»rk.

White wages.

Mr. T. H. Leggett's Evidence. 251

Unfortunately they were not questioned on contract work. — Contract work does ^JJ^*^ y^*"*
not greatly exceed that average pay, in my experience. You will never, in any part
of the world, get a miner or any other class of workman to work by contract for the
8Bme money exactly as he will work by day. A contractor expects to put in some of
hifi own time. If he works overtime, that is his own personal mvestment in the work
lie has in hand, and he expects to come out above the day-pay man, because he feels
he has devoted more time to his work.

Are there no miners' licences in America — that is, have the mine workmen to pay ^^*^%5ffi
any tax to the Government — say 7 dollars per month ? — ^They only pay their taxes as sutee.
citizens.

Are you certain there is no such licence as the one I refer to ? — Absolutely certain.

Chairman,

You have already stated, with many other witnesses, the wages paid and the cost comparative
of living in California, compared with the wages and the cost of living here. I want ILicott o?8?^
to know whether the rate of wages paid here is higher than the rate paid in America, g^^J iSd^
compared with the cost of living ? — i think so. ^»«*«

How do you reconcile that with your statement, if you say that most miners come
here to make money, whereas in America they stay ? — From the fact that the majority
have not their wives and families with them here. If you refer to the married men
who settle here with their families, then I would say the cost of living here is
excessive.

Here they must make more, for they have the cost of coming out and the expenses,
the sending money home to their wives, and yet they save money here ? — Yes, un-
married men.

Still, as long as he works here he must send money home to his family, and also
he must have money to go home again. — I think that makes the point very clear, that
men do not and cannot settle here.

What would be the comparison of the population of the goldfields here and the comparative

f)ldfields of .California ? — The goldfields oi California are much more scattered. ^^anScau-
ou have camps there of from 1,000 to 3,000 people spread over a length of hundreds SSSS^" ^^^
of miles of mining ground.

And in these camps is there any other occupation besides gold mining? — On the
western slopes of the Sierra Nevada, immediately below the mining camps, there is
» fertile district.

When was the gold first discovered in California ?— In 1849. ^hJouSoraS!'*

When did the United States come into existence ? — As the United States, in 1776.

Do you know how long this Republic has been in existence ? — In the neighbour-
hood of 50 years.

And the goldfields here ? — To put it roughly, about 11 years.

When was the first railway built in the United States ? — I do not know exactly ; First raUway in
I flunk at the beginning of this century, 1820 to 1830. ^"***^ ®***^

I am very pleased to learn about all the other countries, and to take example
nom them. Other witnesses have given comparisons between other countries and this.
I think everyone will agree that, unless you can change the whole economical position
rf the Republic in one day, it is impossible to make a just comparison between mining
kwB and what it is in the old countries. The development and progress of the country
BMffches with the times, and you may be convinced that the Commission will do every- oonuniMion in
flung in their power for the mdustry. I am sorry that all who have given evidence J^i^^ft^^
kave only given the position of affairs, and how you desire them to be, without giving indu«tiy!r*^

262 Mr. T. H. Leggett's Evidence.

a way out, still, I am in hopes that some of the other witnesses will point s
way out — I do not wish to take up the position of a mentor. In alluding fa
countries, I only point out what has been accomplished, though it is with the he
we may accomplish the same thing here, and I realise fully it will be a ques
great difficulty, and I think a great deal depends on starting rightly. I fully
that the Mining Commission is ready to aid us in every way possible, and I
that the ways out of the difficulties are matters for serious consideration and tfa
AdviioiyboMtL discussiou. The only thing a witness can do is to make suggestions, an
suggestions are only the opinions of one man, whereas if you had an advisory
as has been suggested, to work in conjunction with the representatives of the in
a way out will be clearly found.

Mr. SchTnitZ'Dv/mont

Deep leveto. When you talk of deep levels you do not mean to comprise mines I

Bonanza, which strikes the reef under 1,000 feet ? — Exactly.

^wi^ What you call a deep level is a mine 2,000 or 3,000 feet deep ?— These
'c«^ mines to which I wish to draw the attention of the Commission.

Have you not seen in the papers that the Bonanza and Geldenhuis I>(
always mentioned as models or examples of deep level mines ? — An engine
very little attention, as a rule, to the ordinary everyday expressiona He o
his own conclusions.

I see it in all the papers. It is always the Geldenhuis Deep and the Bos
examples of deep level mines ? — ^Let me explain the distinction I wanted to dr
is that some of the outcrop mines are to-day working at very nearly the same
depth from the surface as these mines. When you are a few hundred feet :
less under the maximum of, say, 1,000 feet, it aflfects the working cost mu
Look at the working costs of the Geldenhuis Deep, and you will find they ar
ing about the same cost as the outcrop mines, which goes to show that at thi
the depth is not a vital factor. But when you get to 2,000 or 3,000 feet then th
does become a vital factor, and that is the point I wish to draw your atter
for consideration.

You don't wish to judge the future deep levels by the Geldenhuis a
Bonanza ? — Certainly not.

If the papers say the future of the ^ deep levels depends on the future
Geldenhuis and Bonanza, you think they are wrong. You don't agree wil
opinion ? — Everyone has a right to his own opinion. I don't say wiey hav
marked influence. In deep level mining we go step by step as the mdusi
gresses. When a man finds he can work at 1,000 feet and make a profit, \
are doing at the Geldenhuis Deep, then he thinks he will try 2,000 feet Th
index, and the Geldenhuis Deep is more of an index because it is a medium gr
whereas the Bonanza is a very rich grade.

Don't you think the Robinson and the Ferreira Deep, or any of those, woi
far better index than the Geldenhuis of the future ? — Of the future of what ?

Of the future indications of deep levels — of the cost of working deep 1
the future. — Of the mines I am alluaing to ; yes.

You said at the Tamarack Deep Level mine a ton of quartz cost 9a to d
oomp«»tive The mining and surface work.
o?oSS>pand And for the outcrop of the Tamarack mine it only costs 5a 6d. ? — Wha
m!ne? '*^** was that the average cost per ton of three outcrop mines was 5a 2j<l,

B moo*

■ •ad, ex*

|«tfQO Ol
♦7-

hiur evi*

bioB ol

df Dtlive
is, and

on of
tad li-
»wi tad
rnmtiit

gold

blMlinff
:iBO al
j»miiM

•■>* . ^v'iiaw ^l^jfiff !hfS>W.u*ya':. »■ <iii)WW-WMt# ■ jailfr^iWPj<M.»r -^rrn-

256 Mr. J. H. Johns' Evidence.

Eeductionof^ of the additional mines that would be worked in this State, but because a reduction

wouidfnci^eaae would admit of a more extended use of air drills in actual mining work, which would

conmimption. necessitate increased consumption of both dynamite and coal. In mining with air

drills, about double the quantity of dynamite is used per ton, extra coal is required for

^euuSe**at comprcssing air, and less kafl^ labour needed. The average cost of blasting gelatine^
Ferreira mine, per f oot driven by hand labour in developing the reef in the Ferreira mine is 7s. 5'9d.

£ a d.
In driving 3,746 ft. by air drills, the average cost of gelatine per foot was 1 1 3'4

or about three times the quantity required by hand labour.
In stoping 717 square fathoms of reef by hand labour, the average cost of

gelatine per square fathom was ... ... ... ... ... 0 1 7 1 'S-

In stoping 899 square fathoms of reef by air drills, the average cost of

gelatine per square fathom was ... ... ... ... ... 1 9 8*6

or 1'63 times the quantity used by hand labour.

The cost of blasting gelatine per ton mined by the Ferreira company in 1896
was Is. 9*35d., or, calculated on the tonnage milled, 2s. 7*63d. With regard to the^

Railway rates, high railway ratcs on coal and other materials, which so adversely affect the mining^
industry in this State, I will avoid, as far as possible, going over ground alreadj**-
tra versed by former witnesses, and merely state some of the rates charged by th^^
Madras Railway Company in India. The distance from Madras to the Colar Golc^

**r«te8fol*fu^^ Fields in Mysore is about 170 miles, and the difference in elevation about 3,000 fee"^.
Coal is carried to the gold fields at the rate of eight pies per long ton per mile, equ^^
to 0*54d. per short ton per mile. Firewood is carried at Jd. per ton per mile, aix</
machinery at Id. per ton. per mile, while for large quantities lower rates could \ye
arranged. If coal were carried over the Netherlands Railway at the rate of Id j>er

^ wolSeterwia ^^ P^^ mile, the saving to the FeiTcira and Worcester companies would be £5,705
expanses. per annum on the basis of last year's consumption, and if provision were made for
delivering coal in bulk without bagging, a further 2a 6d. per ton could be saved,
which would reduce the cost of coal delivered to those mines to 13s. 5d. per ton. I
agree with the statements made by Mr. Goldmann and others in connection with
native labour. A native in the employ of a mining company is well fed, and the wage
he is paid is almost as much as that of a white labourer in Europe, wlio has to fe^,
clothe, and house himself and family. The great difficulty experienced in reducing

Reduction of ^^^ native wage, and keeping it down, is the frequent scarcity of native labourers ana
native wages, ^hc high cost of bringing them to the mines. I am of opinion that the Government

Government co- could greatly assist the mining industry in reducing the native wages to a normal
Sppiy^SatiJe Standard, if it could find means to induce the natives in the North to work in the
u^ur nece«- mines, and would see that the Native Commissioners should not charge mining com-
panies, or their accredited agents, for natives procured from their " districts," by
reducing the railway tariff' for bringing natives to ,the mines to a minimum, and by
doing all in their power to assist in bringing natives to the mines. A constant and
ample supply of native labourers is necessary to fix and adhere to a low standard d
native wages. Frequent reductions of pay tend to impair the quality of availaUe
native labour — a matter of no small importance to the mines. In affirming Mr. Gold-

pttfsLaw. mann's statements in relation to the Pass Law, I would mention that I was a member
of the deputation that waited upon the Government in connection with the draft law,
before it was submitted to the Volksraad. After explaining to the Government the
advantage of preventing the desertion of natives from the mines, the deputation stated
that they did not propose to ask the Government to provide funds from its revenue
for the administration of the Concept Law, but proposed that an extra tax of 1& per

Mr. J. H. Johns' Evidence.

257

head per month be levied on the natives for that purpose, and thought that the sum

80 raised would be required for its efficient administration, and had inserted a clause

in the draft Concept Law, providing for the expenditure of the whole of the amount,

if found necessary. To this the Government expressed their approval, but the clause

referred to does not appear in the Pass Law, and I understand that at present little

more than one-sixth of the revenue derived ,from the extra Is. tax is expended in the

administration of this law. The Pass Law, if efficiently administered, would save a

large sum of money annually to the mining companies now lost through desertions,

as at present it not only afiords us no protection against desertion, but actually

encourages it. As an instance, a native found without a pass in the Johannesburg Maiadmini«tra-

cQstrict is usually fined 60a, while in the Boksburg district the fine for a similar uw. ** *"

offence is usually 20s., and has been as low as 3d. If I get a fresh supply of natives

from the East Coast, at a cost of 60s. per head, of which each native agrees to refund

558., they find out within a few days that by deserting to the Boksburg district, and

submitting to a fine of 20s. they save 35s., consequently many desert, and my company

loses the money advanced to bring them to the mine. The following returns from

seven companies, sent in to the Association of Mine Managers, show the number of

darters from each company from the date of the Pass Law coming into operation to

the end of March last : —

Deserters.

City and Suburban G. M. Co., Ltd. ... ... ... 1,323

Worcester Exploration and G. M. Co., Ltd. ... ... 223

Minerva G. M. Co., Ltd.
New Heriot G. M. Co., Ltd....

French Band G. M. Co., Ltd.
Crown Reef G. M. Co., Ltd....
Ferreira G. M. Co., Ltd.

Desertion
turns

Total

116

703

300

1,030

1,480

5,175

These desertions would probably represent a loss to the seven companies of fi-om
^,000 to £7,000, as most of the desertions occur shortly after the natives arrive at the
mines.

From the beginning of 1896 to the end of last month, the Ferreira company
expended, in bringing natives to the mine, £6,648 9s., of which £3,026 I7s. 6d. have
l*en refunded, leaving a balance of £3,621 lis. 6d. not recovered, of which I estimate
J^early £2,000 is lost through desertions.

Of the 1,480 deserters from the Ferreira mine mentioned above, 19 only were

^^vered ; 12 of these were returned by compound managers of other companies, and

seven were found by our private police in another company's compound, and were

recovered through the aid of the Pass Law ofiicials. As administered, the Pass Law

^ bears heavily upon mining companies situated at a distance from the pass oflices.

*Ae the case of the Randf ontein companies, who have to send their natives a distance

of about seven miles to Krugersdorp to get district passes and badges before they can

*Dow them to work; and frequently, I am informed, a man with a gang of natives has

to rettum without passes or badges, owing to pressure of work in the pass oflice, and

the joomey has to be made a second time. This causes some of the natives to desert

^thout having worked a day for the company, and the cash advanced to bring them

to the mine is Tost. The Association of Mme Managers, has, on several occasions, com-

Jdftined to the chief pass official in Johannesburg and to the Mining Commissioner,

tbrough whose office, I understand, communications from the pass officials have to pass

k> reiu^ the Minister of Mine& On the 10th September last, the Association of Mine

Loss of Ferreira
mine through
desertions.

Randfontein
companies and
Pass Law ad-
ministration.

C omplaint
against Pass
Law nuMle by
Association of
Mine Manag-
ers.

258 Mr. J. H. Johns' Evidence.

JSIanagers was represented on the deputation that went to Pretoria, to lay the

^ievances of the industry, relative to this law; before the Minister of Mines and the

Qovemment. Not being able to meet the Government that day, and the Minister of

Mines bein^ absent, the deputation had an interview with the Assistant Minister of

Petition o{ Miues, Mr. Liebenberg, and aiseussed the matter with him. About the 15th September

Minefl,A88ocu- last, the Chamber of Mines, Association of Mines and the Association of Mine

aiSd **AaMc2* Managers, sent in a joint petition to the Government, pointing out the chief defects in

MaSa^re** re^ the administration of the Pass Law, praying for certain alterations in its administoi-

rarding Pass tiou, and for an iucreasc in the fines imposed on natives found in the labour districts

without pass or badge. So far as I am aware, nothing was granted beyond the

increased fine, and that, which under good administration would have been of great

assistance to the industry, now freauently operates against it, in encouraging the

desertion of natives as explained alx^ve. On 11th December last, the Assistant

Minister of Mines, Mr. Liebenberg, came over to Johannesburg to discuss the working

*^3^to of^As- ^^ ^^® ^^^^ ^^ ^^*'^ * committee of the Association of Mine Managers, with the
Mciation of result that another petition to the Government, praying for more efficient administra-
ew°*r«ga!3mg tiou of this law, was being drafted by the managers, when we heard of the appointment
of PMiULftw.*^" of this Commission, and the Association decided to wait and lay its grievances before
you, in the hope that you will see fit to recommend to the Government the advisability
of granting the wishes of the, industry as expressed in the joint petition referred to
above, and to see that the chief aim of the administration of the law shall be the pre-
vention of desertions, as intended by those who framed it. The inefficient administei-
M^administra- tiou of the Idquor Law increases the cost of native labour on the mines, because we
^n o quor j^^^^ j^ ^^^^ ^^^ keep a great many natives that would be unnecessary if they were
unable to procure liquor, and frequently natives are rendered unfit for work through
the effects of liquor shortly after tney go into the mines, and are unable to do anything
approaching their due amount of work.

The alterations in the Liquor Law, prohibiting the sale of liquor to natives, came
into force on the 1st of January last, ana during the month of January comparatively
few natives were off* work, and but few cases of drunkenness were observable among
them, but from the end of January the sale of liquor to natives has been on the
Ferreira Com- incrcasc. During the month of December last, the average number of the Ferreira
5?"and i^uor Company's native employees off work, chiefly through drunkenness, was 338. In
^^' January, when the alterations in the Liquor Law came into force, the number fell to 83.

In February the number increa»sed to 126, and in April the average number off work
was 339, so that, as far as the Ferreira company is concerned, we have as mndi
drunkenness among our natives now as prior to the amendment of the law prohibiting
Reduction of ^^® ^^ ^^ Kquor to natives. The question of reducing the wages of white miners on
white wages, thcsc fields is one that must be approached with a great amount of caution. Otur
miners are not, for the most part, ordinary labourers, but men who have had many
years' experience of mining work, the majority of them having gained experience in
various countries. These men have mostly been trained to mining work almost from
childhood, and cannot be replaced by men of little or no experience. With the miners
we endeavour to keep in our mines, it is not a question of drilling a hole and blasting
it, but of supervising the work done by the natives; and the miner who can direct his
holes so as to break the greatest quantity of reef with the least expenditure of
explosives, is the least expensive man we can employ. To a layman it would hardly
Value of exper- s^®"^ possiblc that there could be 30 per cent, difference in the amount of work done
lenced white by oue miner of long experience with a gang of natives, more than by another of
m new, equally long experience working as many natives imder precisely similar conditioD8»

yet this is often the casei as the Ferreira Company's books will testify.

Mn J. H. Johns' Evidence. 259

The conditions prevailing here differ from those of many other countries; the
bmte force required m minine we endeavour to get from the natives, while we aim to
set intelligence and ener^ in our white miners, and if we have to pay a little more
tor it, it is, nevertheless, the cheapest labour we can employ. In 1890, we paid £10 ^'^^^H^J^ *2
per foot for sinking one of the Ferreira shafts, then 200 ft deep, while to-day we pay Saiaw md\a
£5 5a per foot for sinking the same shaft nearly 1,600 ft. deep, which eJiows the ^*^*
difference in the class of labour we employ to-day, and that we had available in 1890.
A reduction of 47^ per cent in the cost of shaft sinking is comparatively an unim-
portant item to a producing company — but a matter of vital importance to a deep level
company, whose work consists chiefly of shaf t-sinkinfi^, and where speed is the main
object until the reefs are reached and the mine developea sufficiently to supply a stamp
milL The most skilled miners obtainable are requisite for this work, and the extra
wages they may make on either the contract or the bonus system, would be more than
compensated by the standing charges of the company if the exploratory work be con-
ducted slowly. In my opinion the standard wage paid to the white miners on these white wi^es not
fields to-day will not admit of a reduction until the cost of living;, house rent, etc., be Sucfw***** **
considerably reduced. The acknowledged standard wage of a white labourer all the world
over is the amount a man can live upon with a wife and family, and I think but few
miners can do that on these fields on £4 10s. per week. The most skilled miners can
always earn more than an ordinary mine labourer if working on contract ; and, after
nearly sixteen years' experience in managing gold mines, I am of the opinion that the
ccmtract system for our mines is the best for securing the most efficient white labour, contimot svstem
and keeping the mining expenses low. A more suicidal policy could not be adopted °^ ^ ^^
at the present juncture than that of attempting to reduce white wages, after aiming
for years to secure the most efficient labour, which, although more highly paid, is the
least expensive we can employ. In 1887 an attempt was made, on the Indian gold '^""**{'^^
fields, to reduce working expenses by importing cheap labour, and a considerable nunen' wage*
number of Italian mine labourers were brought out at about half the pay of the ^ '"*"*•
English miners employed. The attempt at reduction proved a failure, because, as in
tiiis State, the miners were required to supervise native labour, and it was found that
intelligence and energy were required, and proved the cheapest at double the price.
Within 18 months the low wage men had practically disappeared from the gold fields.
If we were to reduce white miners' wages under present conditions, we would drive Remits otnduo-
the best miners away from these fields, because skilled miners are in demand in any ^^^ ^^^
mining country, and they know it, while we should be taking a step that would land
08 nearer the working costs of 1890 than of the reduction we aim at White labour
constitutes a very important item of expenditure on our mines, and if through a
reduction of railway rates, duties on food stuffs, etc., cost of living becomes sufficiently CMtof uving of
reduced to enable our white employees to settle here with their families, much of the JjSfucibie *^
money now being sent to other countries would be spent here. Some time ago I was oovemment
informed, on reliable authority, that £10,000 per month was being sent from these ^ **°'
mines into one mining district in England, to keep the wives and families of our
minora The question naturally arises, how much of the money thus sent out of the
State could be kept here by a liberal policy of the Government, and to what extent
would it affect the prosperity of the State? It has been suggested that if the
Government assist the mining industry by reducing railway rateis, cost of dynamite,
eta, the leading members of the industry must also do something towards reducing
expensea I would point out that the labours of the Chamber of Mines, Association
of Mines, Association of Mine Managers, and the Chemical and Metallurgical Society,
have all along been directed to that end. As an instance of the advance made by the
mining industry during the past few years, the Ferreira Company's working expenses

260 Mr. J. H. Johns' Evidence.

^***"id^°° te P®^ ^^ mined in 1893 were 15'42 per cent, less than in 1892 ; in 1894, 15*82 per cent
o^Pe^r^ra less than in 1893 ; in 1895, 2062 per cent, less than in 1894; and in 1896, 4*43 per
c^wiyrincc ^^^^ j^g^ ^j^^^^ ^^ 2895 — ^making a total reduction in 1896 on the expenses per ton in

'^tSSt**' "**''*'* ^^^2 ^^ *^'^^ V^^ ^^^ "^^ reduction made is chiefly due to :—

(a.) Improved quality of labour.

(6.) Sorting the ore as it comes from the mine, by which means an average of
35 per cent, of the rock mined since March, 1893, has been picked out and
discarded as valueless, thereby increasing the value of the ore milled by an
average of 56*19 per cent., saving the cost of transporting, milling, con-
centrating, and cyaniding 160,000 tons of waste rock, and increasing the
value of the output by over £600,000.

(c.) Expenditure of large sums of money for equipping the mine, with the latest
and most improved machinery.

(d.) Improvements in the methods of treating tailings by cvanide, whereby the
cost of treatinghas been reduced from lis. l*32d. (exclusive of royalty on
the process) in JDecember, 1891, to 2s. 6*15d. in December, 1896.

Reductions in Thesc improvements in the working of our mines are due to the combined efforts
madeT&min^of thosc ou whom the responsibilities of the mining industry have devolved, and
ing industry. ghQ^id Jead this Commissiou to see that those men have not been idle, that they do
not now come to you and ask that the Government should make the first move in
brining about a reduction in working expenditure to enable the majority of mines on
the Rand to continue operations, but having done their best in the matter, they fed
justified in asking that the Government should do something in fulfilling its
obligations to the industry, which is the mainstay of the State, and on which its
prosperity chiefly depends.

Chairman.

Maiadministra- You Stated in your evidence that the Pass Law, instead of assisting the industry,

taon of Pass gjggjg^j i^jj^ kaflirs to run away ? — Yes, as at present administered. As I pointed out>
if we pay 60s, per head to bring boys here, and they agree to refund us 55s., they go
to Boksburg and pay a fine of 20s. per head, and save 35s. per head.

But a kaflir does not get anything out of that ? He only owes 55a, he does
not make a direct cash profit, he only gete rid of a debt. — He gets rid of a debt, and
we incur a loss. It costs us 60s. to bring the boy, and we reckon that we advance
him 55s., which he agrees to repay, but by leaving this district and going to th«
Boksburg district he gets rid of that liability by paying 208. ; so that after paying
60s. we get no labour out of the boy.

But the fine inflicted on the kaffir is only because he has no pass. "But that does
not do away with the fact that the boy can be brought back to the place he deswts
from. — Yes, but if the Pass Law were properly administered it would prevent
•desertion.

That is the intention of the Law. — Yes, we don't complain of the Law, we com-
plain of the administration.

The question is this. Suppose your kaflir runs away and is caught at Boksborgf
by the police, without a pass, the officials there can only punish him for being withoirtr
a pasa But who is the person to give information to the officials there whose niggtf
this is they have caught without a pass ? — The fact that the officials do not g*
information shows plainly that the administration is faulty.

If the^ catch a nigger at Boksburg without a pass they know he is a deserter,
■and fine him, but how are the police to know whose nigger he is?—- We give notiee

Mr. J. H. Johns' Evidence. 261

■ -^

to the pass officials in our district when our natives desert. We hand to the pass

officials the district passes of the deserters, which give "the general description

of each native, and the number on the badge worn by him. These particulars snould

be sent to the pass officials of the other districts. The Pass Law, in its operation, is

divided into three districts. If I manage a mine on the border of one district, and District adminis

my kaffirs desert and go to the adjoining mine in the other district, the pass ofBcials i^w.°"®'****

in that district will not help me to recover my boys. If the Pass Law in these fields

was in the hands of one administrator he would be able to regulate matters in the

three districts.

Do I understand that there is a separate chief of the Pass Department for each
district ? — There is one for each of the three districts.

That is one for Johannesburg, one for Boksburg, and one for Krugersdorp ? — Yea
One fault that we have to find with the administration of this law is that the tines
are not in proportion in the different districts, and that tends more than anything else
towards desertion. In our petition to the Government we asked for a Special Judicial
Commissioner for the three districts, who would regulate the fines so that they should
not be more in favour of one district than another.

The fines are all the same, from £1 to £3, and it is in the discretion of the
different judicial authorities to impose what fine they think fit? — If we had one
Special Judicial Commissioner for the three districts he would impose the same fine
for the same oflence.

One of the officials met me and pointed out that when he fined the boys heavily
it often happened that they could not pay the fines and had to go to prison. The
tronk became full in consequence. These boys were never fetched, so that they could
wtum to the mines, but had to remain in the tronk until their time was served, and
then when they came out they had to obtain a working pass. For that reason the
official imposed lighter fines, so that they could return to the mines. — Yes, that is the
fadt of bad admmistration of the Pass Law. If there were an efficient detective ineiBcieno 01
staff, who did their duty and looked up deserters, there would be no necessity to put SS.^^ ^*
the boys in prison. There is more than enough money provided to properly carry out
the Pass Law, but the money is lying idle. If it were expended the law could be
carried out.

Then, I understand from you, the law is a good one ? — Yes, I think it is. I do
complain of the law. The law, in itself, is a good one.

You think that more detectives should be appointed ? — Yes, and I think that if
the Government appointed one able administrator to carry out the law in connection
^th a general committee appointed Jfrom men who understand the requirements of
the mines, I think the law could be successfully carried out, and would be a blessing
to the community.

Mr. de Beer,

How do you arrive at your figures, when you say that you pay £3 per boy to be ^L**' °*Y^
delivered here ? — I have not the figures by me, but I understand they have already * ^ ^^^
jbeen placed before the Commission. I have paid as much as 70s. to get boys here, the
W^st figure paid for bringing natives from the East Coast being 57a 6d. The East
Goiflt natives make the best mine boys, as they stay longer, and get to do better
>ork, and it is the better quality of labour that pays us best Remunerfttioi

. You say that the Native Commissioners charge for the natives in their districts. NaUre oom-

i-^iom which direction do these natives come which cost 60s. ? — From the East Coast, mpp^"*? nJ!

262 Mr. J. H. Johns' Evidence.

The boys the Ferreira Company have had to pay for came from the north of the
Transvaal.

How much per head does the Native Commissioner charge ? — WeU, I will tell yoa
what I know about it Men were sent up to get natives, and I communicated with
them. They informed me that they had to pay 10s. per head for every boy they got
from the Native Commissioners. At any rate, the company had to pay that amount
I believe my agents, especially one I sent up as a test, biit I cannot prove that it is
the case. 1 omy tell you that the company had to pay the money for every boy we
got down.

Personally, you don't know ? — No, I could not swear it is the case.
Beduotion of About cxplosivca Is it not too much to propose a reduction of 50s. per case ? —
oort of expio«- J ^^^ QYQn then allowing the Government twice as much as they get now.

How do you bring it out you want to reduce the price of blasting gelatine by
50s. ? — I said that if it were reduced by 508. we should save that much money.

But you proposed it as a feasible thing ? — Yea

What is the cost price here ? — £5 7s. 6d.

What can it be landed for here ? — I cannot give you the exact figures, but it has
already been put before the Commission.

But no one has even yet proposed a reduction of 508. per case ? — Well, I cannot
give you the exact cost of manufacturing it ; still, judging from other countries and
the price they pay, I think it could be delivered to us for that price, and a good
profit made.
ck>id thefts. Can you suggest any remedy against illicit gold buying ? — ^Yes.

What percentage of amalgam is stolen, do you think ? — ^That I could not say.

Can you suggest a remSiy? — Well, I think an efficient detective department

would greatly reduce the amount stolen.

Beduotion of In your statement you say that the working costs showed a reduction of 46 per

working coetB. ^^j^^ between 1892 and 1896. I must take it that the industry is working under nr

more favourable conditions. How do you account for the depression with the im*

i)rovements for working under better conditions ? — ^In 1892 there were not so many
ow-grade mines at work, and only the richer mines could pay at the high cost ct
working at that time,
sortiafir. Is sorting in general use now ? — It is becoming general.

That also improves the position 20 j)er cent, or 30 per cent ? — ^No. I think thfr
percentage sorted out by dividend-pajdng companies was given by Mr. Jenniogli
yesterday as 6 per cent., whereas we have sorted out an avera^ of 35 per cent since
1892. I was tne first to start systematic sorting on the fields, and have probably
worked at it closer than they have done in any of the other mines.

Mr. Smit

awauneration You havc got uo othcr proof that the native commissioners take payment for

Nativ^ corn^ boys cxccpt the statements of agents ? — No, but many agents have been sent up by

•uippiy* o? ia' the various mining companies, and have made similar statements.

tivee. They never mentioned the names of those commissioners to you ? — Not that 1 9B

aware of. I don't remember their doing so. Many other managers have told me tbqr

also have had to pay.

It is stated by the companies that money is spent in that way, but don't JOi
require a receipt or some proof that the money is expended, for it is possible that Ui0
money may remain hanging somewhere on the road ? — It is possible, out not proballk
Many managers, I understand, have sent up special agents, and these agents hftte
come back with the information that it was necessary to pay this money.

Mr. J B. Robinson'8 Evidence. 263

Do you think that gold thefts could be prevented by a better staff of detectives? — Q<)M thefts.
Probably by a greater number of detectives, provided they are honest. If you get
honest detectives, then I believe that the illicit traffic could be stopped to a very
great extent

You think that the detectives would be able to find it out after the occurrence,
but as a preventive measui*e, the managers should try to stop the thefts themselves.
Tou know you cannot expect the Government to place detectives on the mines to
watch them. These precautions should be taken on the mines ? — ^They are to a great
extent. We do all we can, in the first place, by getting the best men we can. We
get men of fairly good standing, who, we think, would be ashamed to do wrong. I
will give you an instance. On the Ferreira, the mill manager is a Colonial Dutch-
man. I suppose one-third of the men are Colonials, whose families are of good
standing at the Cape. We have one or two Americans, one or two Englishmen, one
or two Irishmen, and one or two Scotchmen. We mix them up as much as we can
to prevent, as far as possible, any collusion between them.

By whom are those thefts committed — by men on the mines or by outsiders ? —
I think it is done, when it is done, by the amalgamators, because the amalgamators
are the only ones who could handle the amalgam.

Mr, Hugo.

1 understand you to say that dynamite costs £5 7s. 6d. per case ? — Gelatine (we cott of g9\%xiuv.
don't use dynamite), plus 2s. carriage, costs £5 9& 6d.

Tou suggest that it should be reduced by 50s. per case ? — I don't make it as a
suggestion. 1 thought the suggestion had already been made. I simply take the 50s.
as a basis for calculation.

StiU, you seem to arrive at 50a as a reasonable reduction ? — Without being able
to give you the details of the cost, I think, judging by prices in other countries, it
could be delivered to us at that price.

Then you say that if this reduction were effected, the Government would still
make a greater profit than they do now ? — ^Yes, if , as I understand, the Government
only gets 5.^ per case now.

How do you arrive at this estimate that there would be so much profit to the
Government? At what price could gelatine be delivered here? I suppose you
refer to the imported stuff? — Certainly. I don't think that anyone would argue that
it could be maae here as cheaply as it could be imported. Blasting gelatine now costs
us £5 7& 6d. per case. If this could be reduced by 50s. per case, and another 10s. be
taken off for the Government, this would reduce the amount to 47s. 6d. per case, or
IOb. more than the price for which it has been stated dynamite can be delivered here,
and I think we would be able to get gelatine at that price.

Mr. Joseph Benjamin Robinson was the next witness called, and said he had m, j. b. boMu-
been in Johannesburg ever since it was of any account. ton'seridence.

He then made the following statement : — ^I wish to say that the gold industry
may well be congratulated on the fact that the Government have appointed a
Commission for the purpose of investigating matters connected with both the mining indurtri*i oom-
and commercial enterprises which have done so much to build up the prosperity or °^on of sm
this State. It is also a matter for congratulation that the Commission has gone so
f ollv into the various questions l^rought to their notice, and is exercising such patience
in tiieir enquiries into all those reforms which are so necessary to advance the interests
of the South Afidcan Bepublia I am sure t^e Commission will realise liiat whilst the

264 Mr. J. B. Robinson's Evidence.

present misunderstanding exists on the ^old industry, there will always be more or
ess a severe tension in the financial position of the State ; and the CommisBion wOl
also no doubt consider well the circumstance that, whilst the Government and the
industry are not acting in conjunction, the prosperity of the State must be retarded,
and every individual mhabitant of the country must, to a certain extent, suffer from
this want of harmony. I am, therefore, very pleased to see that the Commission has
shown so keen an insight into the imjportant matters to which their attention has been
directed, and have, in a calm, impartial and judicial manner enauired into the wants
of the community. May I add that everyone who is carerully following these
proceedings from day to day feels gratified that there is evidently a determination on
the part of the Commission to do their utmost to bring about a better state of
feeling, and a strong and permanent unity of the various interests concerned
in the prosperity of this itepublic. The questions which are now before the
Commission have been fully enquired into, and a great deal of evidence has been
given to show where the pressure comes from w];iich is so seriously interfering
with the proper working of the mines, and is exercising such a baneful influenoB
not only upon the community of the goldfields, but throughout the whole
State. The first matter to which I wish to refer is the railway. On this subject
the Commission has elicited evidence which proves conclusively that the tariff
is far too high, and that this high tariff is really injuring the welfare of the

^wITiSes.**"" ^^^^' Figures have been adduced oy different witnesses to show that the ezistnu?
^^ ** tariff is abnormally high, and that the oppressive rates which are being paid upon au

goods imported into this country, as well as the excessive coal rate, constitute a gieat
injury to the gold industry. What we seriously want to arrive at is the exact amonnt
to which we can reduce the working cost per ton of ore taken from this*or that mine.
I have gone into figures, and I consider that if we can reduce the cost of each ton of

FivetMitagBper ore by 5a, that will place the whole industry on a sound basis, and will remove the

in°work^in^ disabilities under which the poorer mines labour at the present moment. I majr

cort»required: mention that we*are crushing in the ag^egate at the rate of about five million tone A

ore per annum. If, therefore, a reduction in working cost of 58. could be effected, it

would leave a profit of £1,250,000 over and above the results which are now obtained

in milling the above quantity of ore.

Reduction of It is, in my opinion, absolutely necessary that the coal tariff should be redneed,
onooSL "*** so that the companies would be able to effect a saving of Is. on every ton of ow
crushed at the present time. The mileage is 8d. per ton, the company is put to ft
further expense of 3s. a ton for bagging, and Langlaagte Estate, over and above them
items, has to pay 3s. per ton for cartage from Johannesburg Station to its worka We
have repeateoly applied for a siding, but have not succeeded in getting one. Hie
railway trucks stop at a platform, but only allow twenty minutes to off-load from 100
to 150 tons of coaL For this purpose we reauire 150 natives, and they have been
kept waiting on some occasions for a perioa of four hours, through the irregnhr
arrival of coal trains. This entails a very serious loss on the company, which is now
compelled to cart the coal from Johannesburg Station at 3s. per ton to ensure regnler
delivery. The south railway line, now under contemplation, would do away withtliii
additional expense, but the coal tariff would have to be reduced to meet the requiie-
ments of cheaper mining.

I am now only dealing with the railways as belonging to a public comnaay, in
which, of course, the Government of the country holds a certain interest. But X ahoidd
at the same time, prefer to view this matter in a far more comprehensive manner, and

sxpiopriAtkmof to state exactly the opinion as to the railways if owned by the Government of fti
'*°^^' South African Kepublia There is no doubt that the railway, if expropriated, wmU

Mr. J. B. Robinson's Evidence. 265

become an asset of enormons value to the State ; it wonld be the means of relieving
not only the industry, but also all other interests surrounding that industry ; it would
also be the means of relieving the burdens now pressing so neavily upon the welfare
of the country, and would bring back that prosperous condition of affairs which was
enjoyed by this State for a considerable period. In the hands of the Government the
railway would be an important factor. In some countries railways are built and
maintained for the purpose of opening up these territories. They are run for
hundreds and thousands of miles, and people as a rule follow the railway. They
purchase and occupy land, and thus the territory traversed by the railway becomes
TOoductive, and eventually yields a large revenue. The railways of the South African
Kepublic, however, are not run upon those lines. The tariff is fixed at a very high
rate, and the outcome of that high tariff means a most disastrous hindrance to the
proper development of the country. Whilst the railway is in the hands of a purely
commercial company, it stands to reason that their sole aim and object is to regard it
in the light of a dividend-yielding enterprise which could be turned to the best
possible advantage to shareholders. In the hands of the Government far higher and
greater considerations would be the lever which should guide the Government in
regulating the tariff so as to make the railway a benefit to the whole State. It is a
mistaken policy to keep the tariff at a rate which not only prevents the mines working
at a profit, but also injures the whole trade of the country. By means of a cheap
railway tariff we could bring about an expansion of trade, and whatever revenue
might be lost in the first instance by reducing the tariff, would be more than com-
pensated for by the facilities granted to every brauch of enterprise, and the increase
of trade which would follow the reduction in the railway rate.

I notice that a question was put to some of the witnesses as to whether there Loan for nuwa;
would be any difficulty in the Government being able to borrow the money required SMSf*****"
for the expropriation of the railways at a low rate of interest I may mention that
some eight months ago, when it was clearly foreseen that there would be difficulties to
follow a high tariffT a cable was despatched from London by a syndicate to the
Government offering the requisite sum for the expropriation of the railwaya

This offer on the part of the syndicate was made because they fully realised the
importance of the Government acquiring the railway, and I feel certain that if the
hon. the Volksraad decide during this session to take over the various lines, it would

five great satisfaction not only to the people of this country but to every person in
urope having an interest in the Repuolic. I can also assure the Commission that,
under these circumstances, the money would be forthcoming at a very low rate of
interest. I need hardly say that the effect of so wise a measure would be such that it sffeotBofnUwa:
would place the financial position of the Republic on a most solid and favourable «pw>prutior
footing. It would be the means of restoring confidence in this country throughout
the whole world. It would have a most marvellous effect upon the trade of the
country, as well as upon the mining industry. It would bring about a revulsion of
feeling in favour of this Republic which would be far-reaching in its effects, not only
commercially and industrially, but politically as welL I know, of course, that the
Government will have to give one year's notice, in accordance with the terms of the
railway concession, but as long as that notice is given it would be sufficient to make
the public understand that the Government really intended to expropriate, and we
wouH, of course, expect that the Government would exercise its power to afford relief
by the substantial reduction of the general tariff during the vears notice.

I novi^ come to the question of dynamite. I think, gentlemen, you must be aware The dyiwmit
tiiat the Dynamite Concession has proved a great irrita.nt from the very day it was oonomion.
^[ranted by the Government. I do not myself believe that the Government fully

266 Mr. J. B. Robinson's Evidenoe.

realised the danger connected with the granting of such a concession, or the dis-
advantages it was calculated to impose upon the profitable working of the mines.
When the concession was fii*st granted I publicly addressed the mininfi; industry on
the subject, and I distinctly remember pointing out the evils that woula follow a con-
cession of such a nature. What I then said has been fulfilled to the very letter, and so
long as this concession remains it will continue to be a cause of dissatisfaction to the
mining community. To all business men it is incomprehensible that a burden of this
nature should be placed upon the mines ; that a companv should have the right to
. send d3niamite to ttiis country at a fixed price ; that we should be forced to take it at
that price when dynamite is offered to us at a far lower rate ; and when it has become
absolutely necessary that every nerve should be strained to make the industry profit-
able, and to keep the mines in working order. The concessionaires have not fulfilled
their conditions ; they have not built a factory, and although they have had 2 J years

*^d^iSte!^**' extended to them, still that factorjr will not be built. We are, therefore, forced to pay
£2 5a per case more for djmamite than what we could purchase it for from other
sources. What makes the matter more unintelligible is the fact that out of this heavy
pecuniary burden which we have to endure, the Government only derive a profit of S^
a case, and the rest goes into the pockets of the concessionaires, which they com-
placently appropriate, whilst we are slaving to overcome the formidable dimcultiea
which present ttiemselves in all our mining operationa Dynamite, as you are aware,
is one of the most requisite, as well as one of the most expensive items in mining.
The figures which have been submitted to you show that its proportion of the cost of
working the mines is 2s. lid. per ton. You will fully understand, therefore, that if
we could have our dynamite at 45& a case we would save Is. 4d. per ton. Thi»
amount, in addition to the Is. per ton on coal, comes to 2s. 4d. per ton of ore crushed.

^ «1^ n^w^ ^®^® should also be a fi^eneral reduction of the railway tanff", so as to enable all

ratei required! mining material, merchandise, and stores to be brought to Johannesburg at less coat,

and thus bring down the cost of living.

^tiation!" ^' ^ think you must be convinced by this time that every effort should be made by
the Legislature of the country to reduce taxation in every direction for the purpose cS
keeping the mines in full operation. The mining industry, as you are aware, is the
backbone of the whole financial fabric of the South African Republic. In discussing
this matter with certain interested parties at Pretoria, I reminded them that the
taxation of this country was like a horizontal weight representing five millions
sterling of revenue which the Government were receiving by taxation of the mining
industry and commercial undertaking, as well as all surrounding interests. I demon-
strated that that weight of five millions was held up by a certain number of pillars^
each of these pillars being a gold mine. Many of these pillars were giving way, the
mines were shutting down, and the whole superstructure was weakening. I pointed
out that the remaining pillars would not be strong enough to carry that weight of
five millions, and the result would be that the whole fabric would topple over, with,
terrible financial disaster to the entire State.

^SfkeT^ork" ^ cauuot too strougly impress upon you how imperative it is that we shoold
inpr ^^ ^*^' endeavour to keep all the mines at work. By doing so we shall retain in this oountiy
a large population, whose wants must be satisfied. Trade developments must inevit-
ably follow, and thus there will be brought into circulation enormous sums of maofff*
The revenue of the country will thereby be augmented, and every burgher of the
State will participate in the advantages which wul accrue from the increased dicnhi-
tion of cash. From the calculation which I have made, I consider that if we succeed
in reducing the cost of working by Ss. per ton, there will be very few mines indeed
which will not resume operations, and although some of them may still shoir

Mr^ J. B. Robinson's Evidence; 267

only a slight profit under this reduction, yet there is no mine that would shut down
60 long as a profit was mada It is only when the revenue falls below the expenditure
that mines are compelled by force of circumstances to stop operations. But you must
remember that even those mines working at a cost of from £6,000 to £10,000 per
month spend the greater portion of that sum in wages, which is again circulated
throughout the country. Another large proportion is expended in stores and other
requisites for mining, which are suppliea by the commercial element in the State,
Hierefore the expenditure of money leads to a further inflow of capital, all of which
tends to promote other industries and enterprises, which acts in promoting the welfare
of the country, and the Government itself derives therefrom a very large revenue.

Now, in connection with the railways, I have shown that a reduction in the rail-
way tariff should be made on coaL Therefore, if the general reduction were made,
then the tariff for machinery and stores would also cost the companies less, and this
would add a further reduction to the cost per ton. I have shown you what I think is fair
to the mining industry, and what we consider we can reasonably ask the Legislature
to do for us ; but I may mention now that, while I consider it absolutely necessary to
secure the reduction of 6a per ton, which I have referred to, yet the mining community ^^^SSSg^SdoJ
themselves should co-operate in bringing down the costs in working oy reducing teyinwdudng
expenditure. MowiSy.

Now, gentlemen, with regard to the liquor question. The law which the Volks- uqnorLaw.
nad passed during the last session is as nearly as possible perfect, but I have to
oomplain greatly of the manner in which the law is administered. Many of my MaUdministra-
companies have suffered greatly through the illicit and unrestrained supply of strong Sw.^' ''*''"**'
drinK to natives, and I hold in my hand correspondence which has passed between my-
self and the Government on this matter. I have also here copies oi affidavits made by
my managers showing conclusively the drawbacks we have to encounter in consequence
of the manner in which the Liauor Law is set at defiance. The beneficial effects of the
law, as it was first promulgatea, cannot be overrated, but, as the administration becomes
lax, the side of liquor increases, and the evil effects are immediately felt by the industry.
This is a matter of most serious moment, and the documents which I now submit will
enable you to realise the loss which the companies must sustain under the circumstancea

The Pass Law is another subject which I consider it mv duty to bring before your pa^uw.
iiotice, as requiring immediate attention. The provisions of this law are not observed,and
Ui many instances the companies have been placed in very difficult circumstances on
account of the faulty administration of this law. I may mention an instance that MaUdmintetra-
occurred the other day on the Langlaagte Estata No less than 270 natives packed up gjj <>' ^'«»
their goods and chattels one morning and said they were leaving for home. The
Qompoond manager told them that their period of service had not expired, and they
Qoold not leave. ^ However, they went off, and they were followed. Some police were
laet by the officials of the company, but they were too few to take so larjze a gang of
iiatives in charge ; but the boys were persuaded to go to the Charge Office, when a
charge of desertion was lodged against them. While this was being done, the com-
pcmnd manager states that one of the pass officers said the boys could not be charged,
and it would cost the companies £5 a head for having taken such measurea The
result was that we^ lost three days' work of these boys, as well as the services of
the company's officials for the same period, owing to their having to wait about the
Ctourt to give their evidence. The case was decided in favour of the Langlaagte
Oompany, put at the same time a serious loss was sustained, especially as it must be
borne in mind, that mining and milling operations should be carried on with regularity
and without stoppages, it is such occurrences as these which cause not only annoy-
\ aoee but heavy loss to the industry. It is therefore a matter for tiie consideration of

268 Mr. J. B. Robinson's EYiden^p;

this Commission, as to whether prompt steps should not be taken to place the administra-
tion of the Pass Law on a proper footing. I may mention also that, out of the boys

i>^ertioo8i^the engaged at the Langlaagte Estate since the Pass Law has been in operation, a laige
^^gtaagte j^unjggr Qf desertions have taken place, of which large number not one boy has been

Losaes to Lang, rccovercd. It has cost the Langlaagte Company, since the law was promulgated,
Q^,^o. £11,839, boys costing 558. to 65s. each, out of which the company had to recover £1
^ighdeBer- j^^ gj^|^ y^y f^^ railway fare, but on account of the numerous desertions, only
£517 has been recovered, instead of about £4,000, leaving an absolute losa of about
£3,500 on the railway fare alone to bring these boys here. You will thus realise
the enormous amount of money all the companies must expend in bringing labour to
the mines ; and you will further realise what a serious loss it is to the companies when
boys can desert with impimity, after their employers have expended such enormous
sums to bring them from great distances to work here.

Gold thefts. The gold thefts' question is also one of great importance, and should certainly be

dealt with by the Legislature during the present session. I would suggest that a Protect

^^m^tff«id ^^^° Board be appointed, consisting of five members, some of whom should be Qovem*
thefts. ment nominees, and the others members of the mining industry. This board would

adopt somewhat the same system as is adopted by the Diamond Protection Board in
Oriqualand West. From its members the detective department would receive every
assistance and advice in carrying on their work ; and the mining companies would also
be in a position to engage direcUy with the Board on any matter connected with gold
thefts or suspicious characters. If this Board were properly constituted, it would be of
^reat assistance in tracing stolen amalgam, and in suggesting methods to the detective
department for carrying out a proper system of prevention and detection of theft I
feel sure if this board were established we should be able to put a stop to a great deal
of the stealing of amalgam and gold.

Customs dues. In Considering the reduction of the railway tariff, and also the extreme advisabUitj

of dealing with the dynamite concession, I would like to mention that it is aba

Customs abate- uccessary to cousidcr the whole incidence of taxation. Customs duties should, there^
fore, receive close attention, and abatements made without delay. What should be

ments
sary.

urgently remembered at the present moment is that the cost of living should be
reoucea as much as possible. A very large amount of money is absorbed in the pay-
ment .of wages, which is one of the largest items that has to be met by companiea I
need not enlarge upon this matter, because I feel sure that the intelligence of the
Commission will enable the members clearly to see the bearing it has on the work of
the mines, and I am equally convinced that they will do their utmost to cheapen the
cost of living, so as to secure the objects to which I have referred.

In conclusion, I would like to say that, as the Commission has been appointel

to enquire into the grievances of the Witwatersrand community, and also to make

suggestions as to how reforms can best be brought about» I would take the liberty of

reSrring to what I consider a very essential element in the establishment of a better

state of feeling, and in relieving the unrest which is doing so much harm not only in

this Republic but throughout the whole of South Africa. 1 venture to touch on this

subject because I know that during the four months I have been here it has been a

most important factor in keeping that unrest alive, and in stirring up the objectionable

racial feeling which is working so much evil in our midst. It is my earnest desire to

enlist the sympathy and gain the assistance of the Commission in carrying out the

Closer union be- vicws which I 06^ to lay bcforc you. What I wish to impress upon the Commisaioa

m^La^- is that we shoula do something to bring the Government, the Legislature^ and the

hAbita^ts of P^opl^ o^ this country into closer and more harmonious contact I may mention that

Raodreqtiind I havc already expressed a desire to His Honour the f^resident^ that he« as well aft

Mr. J« B. Robinson's Evidenq^f 269

members of the Elxecutive, should visit Johannesburg with the object of meeting the

people and establishing a more friendly feeling between the different races. The com-

mmiity of the Witwatersrand numbers about 120,000 people, who, therefore, form a

▼eiy important element in the population of this country, and it is my heartfelt desire

that the Commission should use its influence with His Honour the President, members

of the Executive and the Legislature to visit the goldfields, sp that the mining

community may have an opportunity of illustrating to the Government the aotucS

position of aflairs. I feel confident tnat unless we aestroy the barriers which have

more or less separated the people from the Government, a feeling of unrest and dis-

eontent will continue, and will Keep alive an undesirable agitation, not only in the

B^nblic, but in the whole of South Africa as well as in Europe. I may say that

mtwatersrand is the defective spot, and from this spot all the discontent radiates, ^^SSSj^mraSd

gathers in strength, and brings about those strained relations which are retarding the

{vogress of the the whole country. Apart, therefore, from the practical good results

which we expect to obtain from the investigations now being made by the Commission,

we anticipate that their power and good services could not be utilised in a nobler work

than the bringing about a feeling of friendship and unity between the Government and

those that are governed. I am sure that the people on the Rand would be glad to meet

His Honour and the Executive, and members of the Legislature, and so establish a bond

with the object of working together in harmony for the good of the State ; the feeling

of disquietude would die away, and we should find every section of the population

striving their utmost to advance the prosperity of the country. The good effect would

not be confined to the Transvaal, but would extend throughout South Africa. It wouM

indeed be a most pleasing result to investors in Europe if confidence could again be

restored, and there could be brought back to this country a permanent peace, with all

its attendant blessings. I may refer to the monster petition which has only quite

recently been brought out, but which has already been very numerously signed. The

s^^tories are most sincere in their desire to create unity and work hand in hand with

the €k)vemment, the gi*eat aim and object of all right-thinking men being to foster and

develop the great resources of the South African Kepublic.

Mr. de Beer.

You have mentioned that in the beginning of this year a syndicate approached ^'*J53h!v'Ji^
the Government for the purpose of advancing the necessary money for expropriating priation.
the railway ? — Yes.

At what rate of interest ? — ^It was about eight months ago, and I cannot for the
moment give you the exact rate of interest which was intimated to the Government.
I think the chairman of the Commission will bear me out in my statement, because it
was submitted to the Executive.

You say it is not likely that the dynamite factory will be built What reason pynunite t^o-
have jron for saying so ? — I mean it will not be built within the time. ***^*

When you refer to dynemiite here, what class do you refer to— the usual No. 1 Dyuunite.
atandard ? — Yes, of the same character and strength as is in use now.

Is that number the standard ? — ^Yes ; equal in strength to what we get now.

Are you of opinion that if the working costs are reduced by 5s. per Um. most of Effect of five
the nunes would start working again ? — Ye& du^^n 'fn

With a profit ?— Yes, with a profit. J*^ «**•

Do you know any other open reefs that have not been worked which could be
worked if working costs were reduced by 5s. per ton ? — You mean reef that has not
been tooehed. I cannot remember for the moment if there is any such ground, but
minee which are now shut down would be renipened.

270 Mr. J. B. Roblnson^s Evidence.

p^jjw^citon^ We have been told by a previous witness that the labour question has been very
much improved within the last few years. Mr. Johns, the chairman of the Assoda*
tion of Mine Managers, and who is a man of great experience in the gold-fields hero,
has declared that his working expenses in the mine are now 46 per cent, less than in
1892 ? — I am not quite sure about that.

'"iSgoondiSM ^^ ^^y ^^*®® y^^ ^^^ admit that the conditions are now better and more favour-
able than formerly for working expenses ? — ^Tes, as far as machinery is concerned ;
but our labour is still a very serious item indeed.

Here we have got the evidence of a practical miner, who says that the labour of
four years ago has now reached a higher degree of efficiency, and that they can work
so much cheaper now than then ? — to what respect ?

That is what I wish to elicit from you ? — We may have more skilled labour.
But in what respect is the question put ? Does it refer to skilled labour or expendi-
ture. If it is to skilled labour it is better.

Can you not admit that the condition under which the work is now done is
better than within the last two years ? — Well, I can't say that so far as my companies
are concerned.

For instance, machinerv has reached a higher degree of perfection, and is more
efficient ? — Yes, there have been improvements in machinery.

Labour of all kinds is very easily procurable I — ^Yea

Now that labour forms about 50 per cent of the average working expenses of
the mines, and that machinery has reauced the cost of labour, and also that com-
panies have taken to sorting ore, don*t you think, taking all these circumstances
mto consideration, that the conditions are better than they were three years aso ? — ^
With some mines, yes. Sorting is a good principle on some mines» but on the Liangs
laagte it is not so.

^IJifdiSJeSdr* ^^ what do you ascribe the alleged depression? — Do you mean as regards
shutting down ?

No. To what do you ascribe the present depression ? — To the cost of working;
and, unless we can reduce the expenditure, many of these mines that have shut down
will remain shut down, but others will shut down. That is why I have said in this
statement before you, that we must reduce the costs of working by 5a per ton. Stilly
the companies must also do their share to bring down the costs of working to 5a per
ton. If we can get that, many of the companies that are working now, and perhaps
just keeping a balance with regard to revenue and expenditure, wul be able to make
a slight profit If these companies continue their operations, others that have been
shut down will, when the worldng cost is reduced by 5a per ton, come into operatioD
again.

Those same conditions prevailed tliree years ago, yet there was no depression f—
You must remember that mining is deeper now, and of course the cost of working
increases as you go down. Our labour question was not such a serious one in those
days, and I think labour is much higher than three years ago.

Is it not really the cause of the closing down of some mines that they have oome
to the end of their tether, so far as money is concerned, that thev have got no further
capital ? — Of course, many mines have been re-constructed, tjnless we reduce the
cost of working:, some more mines will shut down.

Mr. Smit.

There are no other reasons for the expropriation than those already stated fay
you ? — ^The general burden of expenditure.

Mr. J. B. Robinson's Evidence^ 271

— — — - - 1 - . . .

How many companies have you floated here on the gold fields ? — Langlaagte "'t^^**"'*
Estate, that is the only one of the companies that I floated myself. When I speak of ^°^

the Langlaagte, I mean Robinson and Langlaagte, in conjunction with the Band-
footein Estate.

Do any companies which you floated not pay, or have they been shut down ? —
Ihe Langlaagte mine will by no means be shut down, and I am making myself great
•efforts to reduce expenditure. I am talking of Randfontein and also Block % at
present.

Of your companies none have been shut down ? — No, none have been shut down,
with the exception of one company on Randfontein. On account of the drinking of
kaffirs we have been obliged to shut down. It will be re-opened.

Are there any grounds you originally floated into a syndicate or company not
developed yet — lying unprospected ? — No. There are some grounds prospected and
teady for flotation.

The Robinson mine has a capital of 2f millions ?— 3f milliona * mlne.^*'*"*'*''

The property of the Robinson Company simply consists of mining claims ? — I
lave no further interest in the Robinson Company.

Tou are aware that some mines have closed down on the Rand on account of the
•depression ? — Yes.

How do you account for it that some of the mines have closed down and ex- '"^S^ °"^
lenses are exorbitant, and still the output for the last two months has been fairly
progressive— better than ever before ? — The mines that are productive, and in active
Working, have, in some instances, increased their machinery, and some new mines
have also been opened.

Mr. Joubert

Mr. Joubert remarked that Mr. Robinson had given important evidence in regard
'^ a great number of points, and he would like to have an opportunity of considering
^e evidence and asking questions afterwards.

Mr. Hugo.

Do you think if the reductions now asked for are brought about, the influx of Befuitsof redac-
^pital will come again, which is checked now for the present ? — Yes, certainly. ing"oMt8.^^

If there is 5a per ton reduction ? — It will restore confidence over the whole
World, and will make a marvellous change in this country.

You say Government can borrow money at a low rate of interest to expropriate Loan (or niiwi^
the railway. What do you think it could he borrowed at now ? — That is a question •^«*p»****<*°-
OQe cannot very well answer here ; but I am sure, more especially if it is known that
^he Government wanted to take over the railway, they could get it at a very low rate
of interest

You think this reduction of 5& per ton will enable low-grade mines to be worked cseot of five
jMtyably ? — ^The majoritv, I don't say all, would be able to work. A ^eat many toS%uction
iroold work with 6s. reauction per ton of ore. To give you an instance. Langlaagte SSatTi^'^'***
'Coets 17& dd. per ton. That includes milling, mining, and all ofiSice expenditure.

Is it working at that now ? — It is working at that now. If we get 6a per ton OTL«viMgte
•reduction it would make it I2s. per ton. ^ '

But that would be exceptional ? — Well, Block B Langlaagte works at 208. per ton gLruSL ^
isil told. If we could bring it down by 6s., to 16a, it would be a very valuable
propertrjr. That applies to other companies on the Rand. I reckon, if the Govem-
iment give-8a out of the 5a, the companies ought to find the other 2a

372 Mr- J. B. Robinson's Gvidence;

**S«aike'3wi' . ^^^®^ witnesses have stated they would be satisfied if the Government could only
ungi redaction bring about a reduction of about 2s. per ton ? — Yes ; of course one must acoept tha
^jrorking statements made. I have gone into calculations very carefully, and if we could get
coal and dynamite brought down 3s., and the companies also reduced the expenses 2s.
' — they might reduce 2a 3d. — there is no doubt that between both the companies and
the Government a reduction of 5s. could be made. I adhere to my statement that that-
reduction would bring about a marvellous change in this country, confidence would
come back in great force, there would be a ereat inflow of capital, and all ih»
depression we now see would be swept away. 1 consider greater i»x)sperity would
come back to the State than ever we had before.

Chairman.

ReMom for ex- I sec you Urge the expropriation of the railway, but it is q^uite possible to get the-
prj^tion of ^jQmpg^ny to make the necessary reductions without expropriation, and then you could
have nothing to complain of — would not that be equally oeneficial ? — If you will just,
follow me I will explain why I suggest expropriation. I consider the company in the
hands of the Government would be a very valuable asset ; not only a valuable assets
but it would give a marvellous standing to the whole position of the State.

Supposing the Government expropriated, would the mere fact of expropriation^

without going into the question of reducing the rates, materially influence matters aa

Effect of ezpro- rc^rds the outside world ? — Certainly, of course, one would naturally expect if the

ndiiii?" **' railway were in the hands of the Government, the Government would then have the

power to regulate the traffic to meet the requirements of the industry.

Of course the tariff* would have to be regulated according to revenue and expend!*
ture, and taking also into consideration the prime cost to the Government ? — ^The
railway, of course, in the hands of the Government, would be a powerful lever to brin^
about great changes in this country ; it would have a very far-reaching effect, ana
would have a marvellous effect on the prosperity of the country. I look upon the rail*
way as the moving lever to the whole prosperity of the State.

Formerly the Cape Colony had a railway, and that railway could not have made
the Cape Colony what it is to-day but for the transit carriage to the Transvaal. — Exactly^
and that is why I want the Government to have equal advantages with the adjoining:
States, and then they could get the reduction on the Cape lines and Natal linea The
enormous dividend which the Cape line has made is mostly on account of the great
traffic to this Republic.

Of course the question of expropriation is not a matter that falls within ttie-

frovince of this Commission ; that will be dealt with by the Government. — Of oouise»
am only putting facts before the Commission,
'"expmriattm ^® must simply confine ourselves to the point of the reduction of taxes ; that ia
of raUway. the point that comes within the province of this Commission ; and to see whether the
Government can get for the companies such reductions in tariffs as will meet their
requirements ; and then, if that can be done, said if the Government can agree with the
Railway Company to give the gold mining companies such reductions as they requiier
the expropriation of railways won't matter so much. — I take a more comprehenave
view. If you were to expropriate the railway, the Government could obtain suek
reduction, that it stands to reason that it would be of great advantage to the industiy
and the whole State.

Price of dyna-
mite.

As regards dynamite — other witnesses have complained about the expense of
dynamite, and I will take it for granted that dynamite can be delivered here cheaper;
but no proof has been submitted to the Commission to show that, supposing the oonoet^
sion were cancelled to-day, the indusUy would be enabled to get dynamite landed h0»

Mr. J. B. Robinson's Evidence;

273

denoe between
Oovernment
and mining in*
du 8 t r y —
meftna of re»
•toring this.

cheaper. — There is proof, Mr. Chairman, that we were offered dynamite at a very much
lees rate than what we are paying.

That has been stated, but I would like proof positive of it — Has not that been
placed before the Commission?

Na — ^The question has not been put l^ore us in that form. All we know is that
we were offered dynamite at a certain price which is considerably less than what we
pay for it

It would be very important if the Commission could obtain proof on that point
before the close of the evidence. — That we would be able to obtain dynamite cheaper
in the event of this concession being cancelled ?

Not that ; that you get a firm offering to deliver dynamite cheaper in Johannes-
bmrg. The Commission would like you to submit a proposal for a draft contract, made
by some responsible contractor, by which he agrees to deliver to the industry a given
quantity at a certain price. — I suppose that can be done.

You say in your evidence that confidence has been shaken, and that it will be more ^^^^2??.
or less restored if the President, and Executive, and Members of the Baad were to pay a ^

visit to Johannesburg. I want to know do you mean that confidence has been shaken
on account of his absence ? — More or less, since the unfortunate occurrences that took
place here. I think myself, if the President and Members of the Baad, now, whilst
they are in session, were induced to come over here and meet the people here, and the
President was to address them publicly, as the head of the State, and exchan^ senti-
ments with them, it would have a very good effect. We want to see* the head of the
Government here.

That is not yet proof to me that confidence in the gold fields has been shaken
because the President has not been here. — I am not speaking of any proof. I say, if
you want to bring about confidence, there must be a certain unanimity. There is a
certain feeling which is known throughout the world to exist, and that feeling must be
toned down ; and if the President was to come here and address the people it would
have a marvellous effect in restoring confidence. I suggest that the Commission should
ose their kindly offices to brine; that about

You will agree with me that after the unfortunate occurrences you refer to, the
Oovernment, even more than before, were always ready to meet the industry where
possible ? — But the world does not know that

It is quite enough as long as the gold fields know it and find it out — ^That could
be demonstrated by the action of the President mingling with the people and talking
to them.

I know that the President would not be unwilling to come here, but you must
agree with me that things have happened here formerlv which would keep the
treaident away. I do not know that m>m this side proof has been given that he
tuight not have the same experience again. — No, I am sure he won't.

You are convinced. You can hardly be sure ? — As far as I know, from those I
have spoken to, I am sure of it

Witness said he would like to say that, when that morning he had been asked
Which of the mines he was connected with were closed down he had mentioned one,
but also the Langlaagte Star was closed down for the purposes of development.

Lani

mrlMgrte
niuie.

Star

You stated this morning that if the railway rates are lowered, the price of
dynamite lowered, import duties lowered, a general reduction in the cost of everything
will take place ; you even went so far as to say that vou thought expropriation of the
Railway was necessary, Seud that then the railway will truly be a benefit to the public.
Other witnesses have stated other burdens which are pressing on the mines, ana other
tuLes which might be reduced. How do you propose to remedy the Toss in revenue

274 Mr. J. B. Robinson's Evidence.

I - -^- -

^'fOT^nSuoSon ^^^^^ ^^ ensue if the^e reductions should be made? — In the first place, I suggest
of state reven- that the Govemmeut, as far as public works are concerned, should raise a loan, and
He^reque^ ^^t would relieve the revenue considerably. At the present moment we are p^ng

^"worto.' '"^"^^ ^^^ ^ these public works out of the revenue of the country, and I dare say the Com-
mission are well aware that if the Government would take up a loan to deal with
public works, the expenditure would be considerably lightened— we would be in a far
better position. Apart from that consideration, I maintain that if the mines could be
kept in working order, as set forth in the statement which I placed before you this
morning, there would be a very great expansion of trade, and you would find that the
revenue of the country would mcrea^ie in proportion.

Admitting that it the Govemmeilt were to undertake any important public per-
manent works money should be borrowed, how about general management and
administi-ation. I will make it plainer. The main object of setting a reduction in
everything is to make payable these mines which at present oo not pay or hardiv
pay ; as against that there are mines which, under present conditions, pay hand-
somely, and yield veiy large dividends — ^say the Ferreira, which pays 270 per cent

^adOT^^minoi. ^ ^^^^ ^^^ ^ make a suggestion by which these richer mines should be taxed in pro-
portion to what the poorer mines would be relieved by taxation. Read this article
from Machinery : — ^'^ To compensate for the remission of taxation on necessaries of
life, and loss of revenue from the raUway expropriation, we would suggest a duty on

Taxation of 9okL all the gold wou from the mines, say five shillings an ounca This would bring in
approximately £750,000 per annimi, as we estimate the output for 1897, with careful
management, will be equal to 3,000,000 oza It may be argued that to tax the gold
won is taxing the industry more than ever. This may appear so at first sight, but it
is a right principle to tax the finished article, not the raw materials : the taxation at
the present time is borne by the producers of the gold, in the shape of heavy railway
rates and dear labour, etc. In taxing the gold won the consumer will pay the tax,
and as the world at large is the consumer in this case, it follows that a great portion
of our taxation would be borne by the population diffused over the whole worid.
Therefore, although the mining companies producing the gold would pay the tax in
the first place (while the companies not producing would pay no tax at all), they would
recover it by charging 5& per ounce extra to the consumers, and the consumers could
not refuse to pay this extra charge, because they must have the gold." What is your
opinion of that ? — Well, I don't agree with the article.

In which way do you differ from that article ? — Because I maintain the position
would be worse if this principle was carried out If you impose a tax upon gold i6
will have a disastrous effect throughout the world. It is a very typical problem
that the Chairman has just now propounded. I don't see how you can make any dis*
tinction. If richer companies possess rich ground — the Ferreira or Robinson for
instance — it is a fortunate circumstance which attended that particular holdin|f
belonging to shareholders, and we cannot take away from their profits and handicap
them to feed the poorer mines. The same principle applies to rich and poor.

I still think that, supposing this reduction were made, it would benefit the richer
mines more than the poorer mines, and .that, therefore, to be quite fair and just in
taxation, a tax on the richer mines should be proportionately heavier comparea with
the tax on the earnings of the poorer mines. — I maintain, Mr. Chairman, that a coune
'"auSr*di ^* ^^ imposing further taxation would have a very disastrous effect. I am quite snre
trous. ' that if such a course is pursued, and you make that suggestion to the OovemmeDt
and it was acted upon, then instead of the work of this Commission being a blessing
to the mining [industry and the whole of the community, it will have the oppoote
effect

Mr. J. B. Robinson's Evidence. 275

I want to try and evenly balance taxation. — I have sug^ted that if this idea,
which no doubt you have thought over, that the dynamite and railway can be
arranged and a public works fund provided for them, so that the revenue of the
ooonti^ was not burdened with that serious item, I feel confident, in my own mind,
instead of the revenue decreasing, it would increase, and the Qovemment would have
no difficulty in balancing its bu^et.

How is it there are very few complaints from the mercantile community ? A
merchant, if he sells £1,000 worth of goods, is taxed on that amount; if he sells
£10,000 he is taxed on that sum. Now, then, if you produce an ounce of gold, it is
proposed that you should be taxed on that, and if 10,000 ounces taxed on that. Com-
paring the merchant with the gold pi*oducer, where is the unfairness of the suggested
taxation ? — It would be very unsound legislation indeed. If you begin to tax your
gold in this country a more suicidal measure it is impossible to conceive.

These questions are only put to elicit your opinions, of course, and due weight
will be given at the time the report is drawn up. It is not suggested to make this
alteration ; the question is put to elicit the fullest information possible. You and white wages,
several other witnesses have stated that white labour is one of the chief items in the
working expenses of the mines. Supposing you can effect a saving in the wages of
the whites as well as the blacks, don t you tlunk you will have a railing off in white
labour ? — No ; we must consider the conditions here. In the first instance, they are
desirous that the Government should lessen taxation so that living will be cheaper,
and of course the reduction of wages follows.

I understand that last week you introduced a reduction of wages on your mines ? Reduction o
— On some of them. ^ ^ on RLdfoUtSI

How do you reconcile your being able to effect that saving in face of the state- ™*°**
ment of several witnesses that it would not be possible to reduce the wage of the
white miner until reductions have taken place ? — -I cannot answer what other men are
influenced by. It is impossible to say.* I have made that reduction on my mines and
they are working to-day.

The effect oi your having been able to successfully reduce white labour wages seems
to speak directly against some of the evidence which has been submitted to the Com-
mission, where they state it would be absolutely impossible under present conditions
to reduce white wages. Facts like these speak. — Yes, I have read the statements.

Mr. JovJbert.

In the beginning of your statement you say you have got hopes that the labours
of the Commission will be fruitful of much good for the industry. Do you think
that is the general opinion of the public in Europe and the mining industry ? — ^Yes.

Therefore you attribute the present depression greatly to a misunderstanding ? — Reason of th*
No, but it is a drawback when there is no confidence in the pcjople. pISSm. ***

Do you think the impartial dealings of this Commission will be able to remove such Effect of oom
misunderstandings, or can you suggest any other way out of the difliculty ? — I think SSto^iJa,^
the impartial action of the Commission up to now has inspired gi*eat confidence, not
only here but in Europe as well. I have cables to that effect

You think if the Commission continues in the same spirit as it started much of
the feeling will be removed ? — Yea

Do you think it will be in the interest, not only of the gold industry, but also the Expropriation ©
general population of the republic, if the railway lie expropriated ? — Yes. li^irtor gen

Can you adduce any argument in support of your opinion ? Of course the J[Ji as wS? al
decision on that point will remain with the Volksraad. I should like to hear your Jjf,™*"***^ ***
arguments in favour of expropriation as one of the public at large, also your economic

276 Mr. J. B. Robinson's Evidence.

reasons as a financier, with a view to showing how it will benefit the public as a
seiMfldAi affects whole ? — I stated this morning that if the Government expropriated the railway tiiat
tiwfySSway tbat would be the groundwork of a very strong financial position of the South
African Republic. This railway in the hands of the Qovemment immediately becomes
a very valuable asset. I said this morning that the railway is the moving lever of
this State's prosperity. If the railway belonged to the Government of this country
they would have power to regulate its working and tariff to meet the requirements of
the whole country. The advantages would not be confined only to the mining
industry, but every inhabitant of the State would derive the advantages which would
accrue to the country under these circumstances. That, I think, every person who
follows events as they stand at the present moment in this country woiud grasp with-
out the least difficulty. The very moral effect of it being announced that the railway
belonged to the Government would be marvellous throughout the world, the finandaJ
position of the State would become much stronger and the confidence in the State
would increase. And I mean to say not only that, but it would lead to a further
inflow of capital into this country. When capital is brought into the country it is
not circulated only among a certain section or body, but every inhabitant of that
country participates, more or less, in the circulation of that money. I consider it
would be a very wise policy indeed — a policy so far-reaching in its effects that none
of us seated at this table to-day can possioly conceive the marvellous results tiiat
would follow the expropriation of the railway once it had become a (Government
asset.

So you are of opinion that the heavy taxes do not only press on the industry
alone, but also on the mercantile community, agriculturists, and in fact everybody ? —
Exactly.

And then you are of opinion that in case the Government could have the entire
control of the railways, they would have it in their own hands to remedy this ? —
Materially.

And that is your reason for saying that you think the Government ought to tak^
it over ? — I think so.

In favour of everybody in the republic, not only for the gold industry ? — Yes, fon-
the whole country.

But supposing the Government can get the Railway Company to make all the

Kxproprution of required reductions, would not that meet your purpose just as well ? — I am taking, as

J^23ai^m ^ ®^^^ ^^^^ morning, a more comprehensive view. 1 know what a great effect it would

i!S^*^**"mt« ^^^^ ^^ ^^® State acquired that railway, as far as the industry is concerned, but I dare

alone. Say, trade generally, if those reductions were made which we are desirous should be

made and the State would also benefit. But I maintain not to that extent as if the

State expropriated the railway, and the State owned it as a property.

If the State takes it over, of course it takes it over with all its burdens and
responsibilities ? — Yes.
xinioff indimtry Would the mining industry in any way be prepared, do you think, to assist the

ezpioprUtion Go^'^^nment in getting the required capital at a reasonable rate ? — Oh, yea
'<*»• Now we get to dynamite. Do you not think it is desirable that the Govemm^t

of the republic should have its own manufactory of dynamite in its own country ?—
Well, I would certainly have no objection to the Government having it, but then w«
would like to have dynamite at a certain price and of a certain quality,
n^ynamite. Is it possiblc that, with the co-operation of the industry, the Qovemment can

devise means by which dynamite can oe manufactured in this country, so as to b^
delivered here as cheaply as that exported. Is it feasible ? — Well, I am in doubt
about that

Mr J. B. Robinson's Evidence^ 277

What would be the objection. Why coiild you not make dynamite to deliver comparative
here to the mines as cheaply as to import it? — I don't think you could make it aa mTtomanafao^
<5heaply here. aSvJS3 ^

You will agree, of course, that every man, and every company, and every State, ^J^iJjf* ***'"
wishes to be as independent as possible from importation from outside. If a factory
«ould be started here which can produce dynamite as cheaply, or nearly as cheap, as
you can import it, it would be a desirable things ? — Certainly.

And don't you think it would be the duty of the industry to assist the Govern-
ment as much as possible towards attaining that object? — I am certain the mining
industry would not hesitate for one moment.

Is there no possibility of establishing a dynamite factory in this country which ^j'^ij^ite "ic^
•could manufacture dynamite at a cost nearly equal, or lower in cost, than imported tor>- in Trans-
dynamite? — lam in doubt about it, but still, if a position of that kind is to be QoVern"m«nt
eonsidered, I am quite sure the representatives of the mining industry will only be too <»"**^i-
glad to meet the Government on the subject.

I am not going on the present basis at all. Do away with the present contract ;
then, could not a scheme be devised in which a dynamite factory can be started in this
country, under Government control, and with the assistance of the industry, which will
be able to deliver dynamite at about the cost of imported dynamite ? — Certainly.

Mr. Hugo.

But do vou think there is a chance of establishing such a factory ? Is there a
possibility of such a factory ? — Assuming that dynamite can be manufactured here at
something like the price we can import it, I am quite sure there would be no difficulty.

Mr. Joubert,

It is not the intention of the Government in the least to oppress the mines, pro-
Tided there be co-operation from the side of the mines, and to back up the Government
«o that they can be as much as possible independent from foreign importation. — Quite
light.

Then, of course, you can depend on co-operation in return from the side of the
Government. — Certainly.

Is it impossible to have such a factory ? — That is the difficulty. I cannot answer
that at the moment If such a thing is feasible there would not be a moment's
liesitation.

Within your knowledge, is any dynamite made in this country out of materials oomposiuonand
found in this country ? — Not so far as I am aware. 2aSlite fn use

Have you anything to say against the quality of the dynamite made here ? — ^No, **° **°*''
I think it is fair.

Do you know any mines in other countries ? — Not intimately.

Have you heard of so many people ever being killed by a mming explosion at one
time as happened here the other day ? — Yes, often.

Then, I suppose that is not attributable to the quality of the dynamite ? — ^That is
impossiUe to say.

Now we will get on to the Pass Law. Do you suggest any means by which the pms l»w.
Pass Law can be improved, so as to prevent the running away of natives ? — ^The only
way is to appoint competent officials to imdertake the duties. ^^'dJSi nSiieS''

Do you Know of any special faults or mistakes made by any officials of which
complaint can be made ? — It seems a very difficult matter. For instance, when the Maudministn-
native comes to this country, he has what is called a " reis " pass ; then he afterwards ui. ^' ^*^
gete a district pass ; then he gets a monthly pass. The district pass is held by the

278 Mr. J. B. Robinson's Evidence.

employer, and the native has in his own possession the monthly pass. Still, under
those circumstances the natives disappear, and it seems an extraoroinary thing that
they cannot be traced, and that there is no power in the country here to intercept those
natives, to stop them, or to deal with them in a manner justifiable under th»
circumstances.

There is no fault in the law ; it is in the administration of the law ? — ^The law ia
an excellent one. It is a first-class law.

Can you sug^t any way to administer the law ? — I can suggest ways, but I do
not think it woiud be advisable to mention what is in my mind at the moment, as it
hinges on the officials who administer the law at present

The administration is laid down by the law. — Tes, I mean to say it is the carrying^
out of the law.

An official is the servant of the public, and, if he should not do his duty, there ia

a way to complain about it ; because it is not only natives of this country, there are

officials who don't do their duty everywhere. — Quite right.

ctovernment not Tou cauuot blame the Government. There is no re€J grievance against the Govern*

JiiJSiS'fn/J! ment. It is really the fault of the people who allow such things to continue without

tmuoo of pui lodging a complaint to the Government — We don't blame the Government We

approach the Government through this Commission.

I only want to point out to you that some neglect is attributable to the manage-
ment of the mines. If officials do not do their duty, it is incumbent on the mines to
uqnor L»w. oomplaiu of such officials We will turn to the Liquor Law. That is not carried out
M»udmini»ti»- propcrfy ? — No.

tion of Liquor ^j^^^ remedy can you suggest to get it better exercised ?— I think a body should
^SbKdJiSnS**" ^ constituted to follow up the lines of the law, and I mean to say it is very easily
of Liquor uw. douc. I scc in the papers lately that the Government have been appointing
Commandant Schutte for the getting of detectives for following that matter ex-
clusively. I think if that idea was followed out we should be able to enforce the-
provisions of that law pretty well.

Supposing there is any connivance from the side of the mine manager in thi
transgression of the law ? — That would be a very serious ofifence if a mine manage
defeated the object of the law.

Is it not possible ? — ^It is possible, but very improbable.

What is your idea ? — Do you not think there is a single mine manager who
transgresses the law ? — I can only speak of my managers tl^t they don't transgreai
the law. All I can say is, if a mine manager is not worthy of his position he akadd
certainly be cleared out at once.
Gold thefts. It is very difficult to find it out Now the gold thef ta Don't you think the

Protection law ou gold thcfts is stringent enough? — ^I suggested that a board should be
?2^ *^ old appointed on the same lines as they have at Kimberley with regard to diamond
^•"^ dealing. The members should consist of Government nominees and members of the

mining industry, and I believe if that Board was properly constituted it would be a
very great assistance in tracing amalgam thefts on the Band here. They have the
mines in communication with the detectives, and it would lead to the discovery d
amalgam thefts. The conditions of this were that when any suspicion existed the
mine was directly placed in communication with that Board.
Reduction of What rcductiou ou import duties can you suggest? — I am not prepared to say

import duties, ^jj^t rcductiou ou import duties should be made, but the Commission should consider
that a great deal hinges on this in this country. Our object is to cheapen things here
as much as possible, and the more we cheapen thin^, provided we keep up the
revenue of the country, I am assured that it would be of great benefit to the whole of

Mr. J. B. Robinson's Evidence. 279

the State. It is impossible, off-hand, to say what reduction should be made. It is a
question to be gone into very carefully, ana all the points have to be considered, and
a proper scale has to be marked out before you can say what reduction should be
made.

Still you think it is highly necessary for the progress of the mining industry that
a reduction should be made ? — Yes, certainly.

You see, I ask the question because the people pay these import duties too ? — I
am not speaking for a reduction for the industry alone ; it would benefit the whole

State.

Now I am coming to the point ; there should be a better understanding between oioser "i^on «[«-
the people and the Government. I quite agree with that ; there should be more twUn* people
fraternising, more claser union ? — I am glad to hear it. melit. ^^•™'

I want to hear first from you, what are the people here prepared to do, and what
do they expect from the Government, the Executive, and the Volksraad in order to
bring about that fraternising ? — All I want is the Commission to use its influence
with the President, the Executive, and the Volksraad, that they should come over to
Jdiannesburg and that we should shake hands all round, and that the President
Rhould address the people here, and that the people should have the opportunity of
exchanging ideas with the President and the Executive. The moral effect of this
upon the world would be simply marvellous. It would show that all our differences
had been dropped and that we had come together again as a united people to work
hand in hand for the welfare of the State.

That cannot come from the State to the Government ? — No. I only throw out
that suggestion to the Commission, and if the Commission would see that the
President, the Executive, and the Volksraad members would come here we would
make the necessary arrangements to receive them.

Before the Commission can undertake to put any such suggestion to the
President and the Government, it is their duty to inform the mining industry what the
Commission considers to be their duty, and the first duty of the mining inaustry and Duty of mining
the new population is to make f rienas with the true people of the Republic, and to JJlSSfSe bm-
show that there is no feeling of enmity against them ; that they are really in earnest g^®' popuia-
in trying to co-operate with the old population in furthering the interests of the
countiy. Then the people of the country will see that the Government will do their
duty by the mining industry. I will be very pleased when the day will break when
the new population will join hands with the old one in order to further the common
interests of our rich country, and in order to develop our rich gold mines ; so that even
there will be a living for the poorest man, because the country is good enough. If it is
not it is our fault. If the population will only join hands together, I repeat the country
is good enough, and I hope that everything that has passed will be left behind, that
from this day co-operation will exist, and that the new population will support the
Government, and they will see that the Government are prepared to take their
interests to heart, and I feel that I am only expressing the feeling of all members of
this Commission, and on that basis we will make our recommendations to the Govern-
ment There is another question that occurs in your declaration. What is your idea
of the effect of the development of the deep levels ? Do you think the deep levels vaiue of deep
are of such a value that their development will be good for the mining industry ? It *^ '
stands to reason the longer the mines last the greater benefit it will be for the State.
Have you got any idea about the payable capacity of the deep levels ? — They will be
like the outcrop mines.

What do you think of the Gold Law; as it exists at present does it meet the ooidLaw.
requirements of the situation ? — I think it is a good law.

280 Mr. J. B. Robinson's Evidence.

Mr. Brakhan.

^"eraor.**^* °' " ^ ^^® ^^ youF statement that you say you consider many of j^our companies have

suffered greatly through the illicit and unrestrained supply of strong drink to natives
Where principally are these canteens situated which have done this harm to the
industry ? — At Randfontein.

Are some of these canteens situated on mining areas ? — Some are situated on
stands on claims, and I think all the claims adjoin the mijnpacht

uquor licences. The law as it was promulgated some time ago provided that no canteen licences

shall be permitted on mining areas ? — Mr. Langermann, my representative at that
time, brourfit on action before the Court with regard to the decision arrived at by the
Licensing Coui-t. The Court gave judgment the other aay reversing the decision of
the Licensing Board. To show how matters are complicated, there is a licensing case
pending the decision of the Court, and the Licensing Board granted these men a
licence.

^»nteen«"*^o*n Then you hold that it would be a good thing for the natives that no licences

mining areas, should bc issued on mining areas ? — Certainly, it would be good for them. Of course,

if the industry is unhampered with such drawlmcks as the sale of liquor to natives, it

stands to reason that the whole State must benefit by it. I certainly say that no

licences should be granted on mining areas.

Then you hola that these canteens on mining areas, although they are now onlv
permitted to sell to, white people, yet there is a great deal of likelihood that they will
also sell liquor to natives ? — Oh, yes. The natives are seen carrying any number of
bottles of brandy.

You think the argument of the Licensed Victuallers' Association, that these

Seople can only sell to white people, does not hold good ? — Certainly. I am sure it
oes not hold good.

You have given your opinion with regard to the article which appeared in
Taxation of gold. Machinery, Now I take it that this article will lead people to believe that the gold

f)roduced is really the last product of the company. Now, don't you hold that the
ast product of a company is the dividend which it pays ? — Yes.

Don't you think that if this suggestion would be followed upon, that these poor
mines would be very much handicapped in comparison to the rich ones ? — In what^
way?

Because I take it, the poor mines would have to pay the same amount of theic-
production, although their profit is minimum ? — Cei-tainly. It is a dangerous policy
to introduce such a thing. It will have a very injurious effect if you tax gold.
Taxation of divi- Dou't you think it is much more advisable to introduce a tax on dividends? — ^I

dends. object to that also. I don't say that for any personal reason. But I say this : that,

if instead of reducing taxation the Commission is going to impose further taxation,
I foresee that no good will result. That I say in plain English. The forecast I made
to-day is right. You don't want further taxation ; you ought to lessen it The
balance of the budget will not be disturbed.

We do not anticipate, if these reductions are made, that in the long run the
Government will be on the wrong side with the budget. Yet it may be necessary.—
Loan for public Thcv won't be ou the wrong side. They want to raise a million to-morrow for public
vrorks deeir- ^qj.j^8, and then it is off the revenue of the country. It is easily adjusted. There is
no danger of the balance getting on the wrong side.
Taxation of gold If it Came to a question of whether the gold product or dividends should be taxed,

repr^enSw? would you not prefer that dividendg rather than gold be taxed ? — I don't prefer any-
thing of the kind, because I think you are starting a dangerous theory. You have

Mr. J. B. Robinson's Evidence. 281

no idea what you are doing. If the outcome of the Commission's work is to tax
dividends or gold I should be sorry you have been appointed on the Commission,
By that tax you are not going to benefit this country. You should wait until cir-
cumstances arise before you raise this question. Toi; should not start this question
at a moment like this. You should see whether you can reduce taxation, and how to
restore confidence and bring back the prosperity of the country ; you should not seek
an outlet of this nature. Why, you will completely frighten people at home.

It has been started in the papers, and I want to point out the danger Yet are
there not other countries where they have an income tax ? — Yes ; but I prefer a
country where there is no income tax.

But the question is — if the occasion should arise whether there should be a tax on income ux un-
gold or on income, which would you prefer ? — I don't admit either. It is suicidal so tSISaL *°
lar as the industry is concerned.

I don't think we can argue that way, as in well established countries an income
tax does exist. — In well established countries you have a great many industries. Here
we are dependent entirely upon the industry — the mining industry, which is the back-
bone of the country. If, as in Germany or England, there were all kinds of industries
of their own, of course the position would be different, but here the whole position
depends upon the profitable working of the mines, upon inspiring people in Europe
with confiaence so that they will invest in the country and assist us in developing the
resources of this country. If you once begin to tax gold or tax dividends, you will
certainly do an immense amount of harm. You will stop that good which we all
anticipate will follow the action of this Commission.

I personally hold that it would be better for the welfare of the mining industry,
that it should get every possible facility from a reduction of railway rates and other
aonrces. In that case the revenue of the State would be curtailed, and ways and means
should be devised to balance the budget. But it should not be a tax on the production Taxation of gold
of gold if other means can be found. — There should not be a tax on gold or dividends. ""*****^^*«-
Other ways can be found.

I have previously referred another witness to a certain point in the Gold Law, Taxation of gow
Namely, where the Gold Law provides that in the case of mijnpachts Government have S?^^tB.**°
^ right to 2J per cent, on the gold produced. Do you consider that a good or a bad
proposition ? — It is a very bad one. I have often discussed that with high ofllcials,
•ajid they themselves knew that if they imposed that tax it would have a very bad
effect

Now, the Government not having imposed the tax heretofore, is not that a
-guarantee that Government is not going to impose a tax on production or dividends,
^hich is likely to be injurious to the industry. — I am quite sure the Government won't
^0 such a thing.

Do you consider that the Gold Law in other respects, say, as regards the tax im- ciaim ucences.
posed on claim licences, is reasonable, and not oppressive ? — I think so, more especially
now they have made the alteration with the Mining Commissioner's department, who
^ye got power, according to the Gold Law, to regulate what amount shall be paid as
<ilaiin licences and what as prospectors' licences. Distinction of

You think, then, that diggers' licences should only be asked for on claims actually JISton?*\Fc«aI
forked ? — That is a matter for consideration. It is a point I have not thought of. «*.

Mr. Smit

You said this morning, in reply to a question, that you would expect a bigger incwMedoutput
■^ntput when more mines were working? — Yes, in those mines with improved
«t[iachinery atnd increased steam power.

282 Mr. H. F. E. Pistorius' Evidence.

The initial expenses of a mine, the development, etc., are much heavier than the
expenses when it is started and in full swing ? — Yes, much heavier.

These new mines which are started, are they so good that they will pay expenses^
seeing that some old mines had to close down on account of not being able to pay
expenses ? — Yes.
^^SScJeSro- ^^^ think the expropriation would create a good impression not only here but in

priation in EuropC ? — YeS.

'^^ But why ? — Because the impression is only to be formed that when the Govern-

ment holds the railway it will alter the position, and they could regulate the tariff as
they liked, to meet the wants of the country. Apart from that, the railway
would be regarded as a valuable asset in the hands of the Government.

Have they got such a lot of interest in our Government that they are anxious the
Government should have good assets ? — I am taking up the position that this railway
is a very important factor in the welfare of the country, ana when I come to consider
that we look towards Europe for our support in making this country what it actually
is at the present time, and what I maintain it will be through the inflow of further
capital, I say to bring about that desirable object the Government should be possessed
of the railway to restore that confidence, and make the investing public at Home
realise that the asset is the property of the Government, and they can do with it as
they think fit.
^^^yv^^^' But supposing tariffs are put on an equitable baais in order to meet all the require-
able to reduc- mcuts 01 the Commissiou, does it then concern you much whether it is run by a pnvate-
rates* aioneT*^ Company or by the Government ? — I have answered that already. It would be a very^
good thing if the tariffs were brought down. It would be of great assistance to th
people of this Republic. But I am taking a higher and more comprehensive view. ~ _
IS a question of very high finance. It wul have a moral and financial effect through.—
out Europe, and would have a great effect on the future progress of this country.

This concluded Mr. Robinson's evidence, for which he was thanked by tt^e
Chairman.

Mr. H. F. E. Pis- Mr. H. F. E. Pistorius Submitted the following statement from the Joint Com-
dence."^ *^^ mittec of the Chamber of Commerce and Mercantile Association : —

This committee, representing the merchants and traders of Johannesburg, makes

the following statement regarding the present position of the mining industry, always

Mining industr>' bearing in mind that that industry is the financial and industrial mainstay of the

!'i'5^?f"i?!l1 country. Without the market afforded by the mines other industries could not exist

industrial ..•'-^ <■ it* • /» • #• ^ • * • n* ii

mainstoy of m the Transvaal, and this economic fact is so far-reaching in its effect on local

coun ry. industries that even agriculture comes under the same rule. The successful workisg

of the mines affords a basis for industrial, agricultural and commercial developmait

in many other ways. Admitting this fact then, the first necessity for the prosperity

of the country from an industrial standpoint is to ensure the success of the mineft

Unjust buniens We are of opinion that at present the mines have to carry many heavy and indefen*

on mines. gjjjig burdens. The chief of these are the monopolies for railways and for explosives
We ask the favour of your careful consideration of the following burdens that can te
readily removed : —
Railway mon- Railways being necessarily a monopoly, and in all countries superseding the hi^*

opoiy. ways of the countrv, are consequently under different economic and administrative

conditions to other industrial enterprises. The public have to be guarded agednst tl»
possibilities of such a monopoly as that afforded by a railway, being used to the
general disadvantage. In England and America the average dividends paid by tbft

Mr. H. F. E. Pistorius' Evidence.

283

railways amount to between 3 and 4 per cent, per annum. In view of these facts the Netherlands
rates charged and profits secured by the Netherlands railway cannot be justified. ^* **
The rates obtaining on the Netherlands Railway are far in excess of those ruling on
all other lines in South Africa. The very great differences are shown in the following
tables : —

Cape

Orange Free State
Natal

Portuguese . . .
Netherlands, via Cape
„ „ Natal

„ Delagoa

Agricultural Produce.

Cape, for 23 miles

Orange Free State, for 23 miles ...

Natal, for 13 miles ...

Portuguese

Netherlands, via Cape and Orange Free State

„ Natal

„ Delagoa Bay

Normal

per ton

per mile.

Intermediate

per ton

per mile.

Rough

per ton

per mile.

2-34

1-3

2-34

1-3

304

1-94

4-07

3-53

2-44

7-7

506

3-82

3-26

4-27

3-69

2-54

DUCE.

Per ton per mile
plus terminals.

...

...
...

...

id.

hd.
Ifd.
2-2A

State

31d.

• • •

3-26A

• • •

2-3A

Comparative ta<
ble of South
African rail*
way rates.

The mines mainly consume heavy goods that have a low prime cost in the Railway rates on
countries from which they are brought. The following table will illustrate the *'«»^«***^
pofiition : —

Cargo of Swedish deal

„ Pitch pine
300 casks cement . . .
1,000 cases paraffin
1,000 boxes candles
120 drums grease . . .
100 shoes and dies . . .
Steel rails

Prime oort.

Kail cluurart

£ s. d.

£ «.

1,484 10 5

2,658 13

2,379 7 1

7,361 8

80 16 10

406 0

207 0 8

306 13

347 11 9

104 12

19 9 1

26 15

170 16 8

64 11

69 3 11

118 12

In the United States of America the railway lines cost about £12,000 a mile to
Wld and equip, and the average rate charged on all sooda is 25 of one penny per
ton per mile. The high rate charged by the Netherlands Company for coal traffic is an
especial hardship on the mines. The bulk of the coal traffic is carried on the Band
Tram. The rates vary according to distance from 2*08d. per ton per mile to 2'92d.
In Natal the rate is ^d. per ton of 2,2401b& per mila In the Free State the rate is
^ per ton of 2,0001b& The coal mines produced 1,437,297 tons during 1896. It is
estimated that the railway received £350,000 for transport of the coal. If the Free
State rate were adopted there would be a saving to the mines of over £200,000, and
an ample margin would still be left for the railway. The management and general
irorking of the railway also leaves much to be desired. Most of the ^staff appear to
l)e without railway experience and administer the railway with all the disadvantages
to the general public that an unchecked monopoly will allow. The higher adminis-

Cost of equip-
ment and rates
of railways in
the United
SUtes.

Netherlands
RiJlway coal
rate.

Natal Railway
coal rate.

Free State Bail-
way coal rate.

Netherlands
Railway ad-
minlstraUon.

284 Mr. H. F. E. Pistorius* Evidence.

■ — T

tration is also inefScient. This is conclusively shown by such facts as the Lingfaam
contract — a document so loosely drawn aa to have cost the railway £60,000 to get it
cancelled — and the dynamite disaster. Competent administration would have avoided
Dynamite mon- both thcse cvils. Dynamite is another monopoly that bears heavily on the industry.
^^' The present lowest price of No. 1 djmamite is 85s. at the factory, plus 2s. 6d. per case

iid TJi^^taS ^^^ delivery. We are informed that No. 1 dynamite is selling in Germany at 218. 6d.
pricei. per case. It would cost lis. 3d. per case to land it here, making the landed cost

32s. 9d. For the purpose of comparison, we will take the price at which Nobels con-
tracted with the mines in 1893. That was 40s. a case. To that add 58. a case, as now
received by the Government in lieu of duty, bringing the price to 45a a case. The
Government agent sells at 858., and thus has a margin of profit of 40s. a case. The
consumption is equal to 250,000 cases a year, and the mines therefore pay £500,000 a
Dynamite agen- y^ar morc than the market value of the article. Amongst the excessive charges
cL?°eB^^*^*^ making up this enormous sum are the agency charges levied by Mr. Lippert and the
Cement royalties m favour of Messrs. Lewis ana Marks. Cement furnishes another burden

for the mines, increases the cost of building dwelling-houses, and generally has been
European and to the great disadvantage of the community. First-class cement costs in Europe
^SJI^^ment 5s. 6d. per cask of 4001bs. gross weight. It costs 44s. a cask to bring here. The con-
sumer IS not only burdenea with the heavy cost in freight and railage in bringing the
Duty on cement, ccmcut to this market, but has to pay a protective duty of 12s. a cask, so as to bolster
Cement factory, up the local factory. The protection given the local factory is 128. a cask throogh
the Customs and 7s. 8d. through excessive railway charges. The local factory pro-
duces equal to 30,000 casks per annum, and is, therefore, subsidised by the State to
the extent of £28,000 per annum. We submit that such an anomaly as this subsidy
to a small industrial company (which is only a parasite on the main industry of the
country) should be swept away.

The evidence herein already adduced regarding the disastrous experience gmed

in supporting the dynamite and cement concessions indicates the evils springing from

Brick ^uJdng such a policy. The concession to manufacture bricks is another that beans heavily on

conce on. ^j^.^ community, and should be abolished, and so also should the heavy duty on

printed matter.

Incidence of tax- The incidence of taxation, by which the necessaries of life carry such a heavy

•tion. share of the burden, should be amended. It is not only an economic mistake, but, in

our opinion, a positive wrong to tax the bread of the people. During 1896 gi*ain and

Grain and flour flour to the valuc of £1,000,000 wcrc imported. Although the special duties were

duties. suspended the amount paid in ordinary ad valorem duties amounted to fully £60,000,

ana this heavy burden was mainly contributed by the wage-earning portion of the

Import dues, community. The Customs charges are altogether excessive and require material

reduction. In all other South African States and Colonies machinery is imported

Import duty on free, but here we have to pay £1 168. per cent. This charge directly bears on the

*^' mines and should be removed. Amongst general questions that have already come

under enquiry by the Commission, are white labour, native labour, over-capitaliaatko

and merchant profits.

White wases ^® ^^^ ^^ opinion that no material reduction of white wages will be possible

until the cost of living has been reduced. The present policy of high tariff unduly
enhances the cost of necessaries, checks enterprise, and produces such a high costw
living that a workman earning £20 a month can but barely maintain his wife and

native labour, family. Native labour is an equally important factor to the mines. We are confideol
that if native labourers were afforded facilities and due protection in coming to tbeeB
fields, the supply would be so great and continuous as to enable wages to be rednoed
to an average of 35s. a month. The ill-treatment and hardships of natives iriiiW

Mr. H. P. E. Pistorius' Evidence. 285

coming to and travelling from these fields, the injustice with which they are treated

under the Pass Law, ana the oppressive regulations imposed on them cost in extra

wages alone fully 25s. a month. Estimating for 70,000 natives working for wages in

this district, that shows a loss of over one million per annum. To illustrate the

oppressive working of the Pass Law we adduce the following recent incident : — ^A MaiBdminirtra-

building contractor absconded from Jeppestown and left 25 natives without a l»w. °

fortnight's wages and without their passes. The chief contractor on the job decided

to carry on the work, and arranged with the natives for them to continue at work.

He went to the Pass Office, reported the case, and asked for new passes for the boys.

He was promptly refused, and told that the whole lot would be arrested and fined or

imprisoned for being without passes. Such administration can only have one result,

and that is to drive away labour, and, as a reflex result, increase the cost of what

is left

Over-capitalisation is a point that appears to have occasioned some misunder- ovw - ^Pjj^*^^
standing. Whether a mine is over or under capitalised does not in any way affect ^ ^^^ *••
the working charges. It is purely a market question, and affects the price of shares.
The industrial question for the mines is whether or no they can produce 20s. worth
of gold at below a cast of 20s., and therefore at a profit. How the mine is capitalised
does not affect the industrial problem either way.

Merchant's profits in Johannesburg are on a narrower margin than in any johannestmiK
mining camp in the world. The leading lines used in quantities by the mines are pr^tS.^*"*'
contracted for at a margin of the barest possible profit, and we will submit proofs of
this statement.

CIiairTnan.

As Chairman of the Chamber, I should have expected you to have given some ^^SSSSiye!"*
indication of the measures required to facilitate commerce and agriculture. In your
statement there is very little on that point. You practically go over the same ground
as travei-sed by mine managers. I can understand that the prosperity of the mines
in a great measure influences the prosperity of commerce and agriculture. But still
it cannot be denied that commerce and agriculture are separated from mining, and for
the prosperity of the country generally agriculture and commerce should go hand in
hand. Your report suggests no redress or measures to be taken to relieve the
necessities of commerce and agriculture. Now, what can be done by commerce to
assist agriculture ? The only point I find in your statement on agriculture is this—
that the only thing done by the Government in order to protect the agriculture of
this country is that the commercial people want to take away — that is, the import
duty on food stuffs. — In the first place, I should like to point out that my report import duty on
refers to the price of labour, which would materially assist commerce and agriculture, cvStofuSour.
and in order to get commerce and agi'iculture to flourish in this country, the mining commerce and
industry, which is the backbone of this country, should flourish. That is why we say JS^denr^on
that the tax levied by the railways, dynamite, and native wages should be reduced, mining indos-
As shown in the question of dynamite alone, £500,000 could be saved in the way of FreJtradeindy-
free trade in dynamite. Take railway statistics. For instance, on a load of coke of a luiiSiy^tee
prime cost of £68 10s., the railway carriage was £294. The two Colonies took 293

Jer cent, of the cost, and the Netherlands Railway for carrying from Vereeniging to
ohannesburg got 136 per cent., the entire cost being from Europe to Johannesburg
660 per cent, on the prime cost So the load which originally cost £68 10a., cost
laoided here £455 10a In the matter of pig iron, a lot ^^ich cost in England £149,
had to pay £294 for transport. The Free State and Cape Colony drew 134 per cent.
for carrying, and the Netherlands for a distance of 52 miles got 63 per cent. The

286 Mr. H. F. E. Pistorius* Evidence.

cost of laying down a quantity of pig iron costing in Europe £149 la 3A increases by
the time of delivery here to £514 la 8d. That shows that those heavy railway
charges made it so expensive that it must be a heavy burden on the mining industry.
Then you say that the Chamber of Commerce tries to -take away the only protection
granted to agriculture in this country by suggesting the removal of the tax on

'"fSoSrt^ ®" foodstuffs. If you take the tax on foodstuffs, you wiU find that not alone is the tax
the usual nine per cent, ad valoreTa, but also a special tax in many cases 100 per cent
Notwithstanding the expense of this heavy tax very little is coming into the country
and up to the present that has not improved the position of agriculture in the
country

Agricoitoie. It has not been shown what we have to do to assist agriculture. Pig-iron and

dynamite, which you speak about, do not concern agriculture ; they concern mining.
I want to speak exclusively about agriculture. I think vou will agree with me. that
it is desirable that agriculture, as well as the mines, should be developed in this
country. Foodstuffs, which to-day are brought into the country, might be produced in
the country itself, and that would also be a great support to commerce. There is
hardly any necessity to travel over the same ground as has already been gone over by
other witnesses. What the Commission would like to know from the Chamber of
Commerce is, what are their requirements, and what can be done to foster agiiculture,
the importation of machinery, etc. As long as we can import sheep here it appears to
me that Mr. Pistorius does not mind what becomes of the agriculture of the country
I take it that the prosperity and advancement of the goldnelds is a big factor in Uie
country, but the backbone — the sinews of the country — ^is agriculture. That is why
we would have liked very much some opinion on those points. You have shown us
how agriculture and commerce can go hand in hand. There is another question I want

"'?S[******° °' ^ speak about — the importation of iron. It is stated that this Republic contains iron
as good as any other country. Don't you think there is a chance of getting iron ont^
of this country — that is, instead of importing it at a high cost ? Would it not b^
another development of industry, providmg work for thousands of people, and which

Agricnitore. would keep the money in our own country ? — In reply, I would like to say to the
Chairman, regarding the prosperity and advancement oi agriculture, that I acknowledge
it is the backbone of every country. But in this country, so far, agriculture has not
provided for the wants of the population. The prosperity of agriculture at the present
moment is dependent on the prosperity of the mining industry, and although tnere is
a big market here and good prices for all produce, agriculture has only advanoed
very little. How can you then say that the Chamber of Commerce or the populatioD

Amount of food- want t/O take away the only protection of the country ? The market shows that moat

S*" ^°^^^ of the produce on the market here comes from the Free State and outside. Regarding

iron, I believe there is lots of iron in the country, but up to the present I cannot see

Working of how it would be possible to get iron out under present conditions. If transport woe

ore. ° easy and cheap, and wages to get ore out of the ground were cheap, then I would say,

** Yea, let us get the iron out of our own country." Until such times as the conditioDB

are altered in such a manner that it can be worked cheaply, it would be impossible to

compete with Europe.

Mr. Jovhert,

^^^*SemiSng*S ^ Want to kuow in what way is the prosperity of commerce dependent on the

diMtry. prosperity of the mining industry. — Here in Johannesburg they are so cloeefy

connected that the prosperity of trade or commerce entirely depends upon the
prosperity of the minea

And the prosperity of the mines and commerce chiefly depends on the prosperity

Mr. H. F. E. Pistorius' Evidence. 287

of agricultui-e ? — The prosperity of the country depends upon the prosperity of the
mines.

The country cannot exist for mines and commerce without agriculture. Don't
you consider that the regulations which press on the mines and commerce also press on
agriculture. The commercial men do not pay import duties ; the farmer pays that. —
iSiat indirect taxation is paid by the whole population. The reduction in railway rates
does not only affect the mines and commerce, but also the farmer.

Mr. Brakhan*

All the matters which have been laid before the Commission so far are very clear on
some points, except dynamite. The dynamite question seems to be shrouded in a good
deal of mystery. We cannot arrive at any particulars as to how much of it is really
manufactured here, and in order to arrive at some conclusion about the question I
should like to ask you certain things. Can you inform us how much nitrate and how
much sulphur has been imported into this Republic by the various railways ? — I don't importation oi
think that the Customs returns show how much of these goods are separately dynamite
imported. And then, besides, sulphur is largely imported in connection with the Scab »"»°"'*c*"«-
Act, for the purpose of sheep dipping.

You think it is difficult to find out how much sulphur has actually found its way
lere into the Transvaal ? — There would be no difficulty, provided the Customs
authorities took a separate account of it.

I should like to put a suggestion to the Chamber of Commerce and Mercantile
^Association to try to find out what the quantity has been, and also what quantity of guhr
las been imported, and what quantity of ready-made dynamite and nitro-gelatine. I
'tiiink the latter points should not be so difficult to answer, as the data could no doubt be
^t from theportis. Nearly all the dynamite which comes into South Africa is used in this
^public — 1 don't think that will help you. The quantity of dynamite imported into
this country the Government have the statistics of, and guhr also. The dynamite
factory could produce that to the Commission, and therefore there would be no
occasion to see that specially through the Customs. These matters are all in the hands
of the Government.

I think it would be wise if some evidence came from outside quarters. — You mean
on this question. I don't see that would help you at all, because the whole of the
dynamite consumed on the fields must come through the dynamite factory, and there-
lore the whole information is at the factory, and in the hands of the Government, and
is available, I suppose, for this Commission. The Government can call upon the factory
authorities to say what quantity of these goods has been imported.

With regard to the revenue derived from the importation of dynamite, I was glad stat* «™^
to see that you take a broad view of the case. 1 think everyone must know the monopoly.
Oovemment is quite entitled to make a profit out of it, and I hold that your opinion
is that the monopoly make too much profit on this very necessary article ? — Far too
much.

And you hold, as a mercantile man of experience, that there would be no
difficulty in importing dynamite at a reasonable rate, and in ample quantities to
supply the demand ; and if the Government were to receive a duty of 10a a case, it
would mean about £125,000 per annum, and yet you think the mining industry would
have enormous benefit ? — Certainly.

I see under taxation with regard to the duty which is imposed on machinery, import duty on
. you do not say it is exactly high, but that it should be removed ; don't you think, ^"^^^^^
taking other taxation into consideration and the general conditions which prevail here,
tbat uiis duty of 1^ per cent is a low one ? — In comparison with others it is.

288 Mr. H. F. E. Pistorius' Evidence.

I hardly think the mining industry has raised the question of this duty being a
burden ? — I think they have not, but seeing you wish to develop the resources of the
country, therefore you must give the people who undertake this particular duty
every opportunity to lay down machinery as cheaply as possible.

I think it is much more important that the railway rates should be cut down to a
reasonable extent, and this would make an infinitely bigger amount than this duty of
1^ per cent., which I understand is levied on the cost of machinery in Europe, plus
20 per cent. ? — Yes, making it 36s. per cent. I agree with you that this does not
affect the question very materially, but taking into consideration the development of
the country, and a new country, particularly where you have many mineral resources
to be developed, you want your machinery brought into the country not only for the
mining industry, but for agricultural purposes, as cheaply as possible ; therefore, the
impoi-t duties should be taken off and railway rates should be brought down to a
reasonably profit-paying basis.

I take it your remark in your statement refers to mining machinery ? — In this
particular instance it does, but, we take it, the prosperity of the mines means also the
prosperity and development of other industries in the country. We take it the
mining industry is the first point with us. Every other industry is dependent oih it,

^dSweT^d^r^ and if you develop the mining industry you develop agriculture and the other
miStol'indus" manufactures in the country.

try. I personally hold we ought to be fair in our demands. We ought not to ask the

Government to cut down everywhere. — That is quite right. If the price of dynamite^
is reduced, and if you reduce the rates charged oy the railway to a fair profit-payin^g
basis, you will help the country forward to such an extent there will be no reason c^^
complaint*

On the other hand, I do not think anyone connected with the minii^^
industry will grumble if they have to pay the rate charged on the cost of machineir^
in Europe ? — I do not say so either. The object of bringing forward this question of
the enormous charges of the railway is to bring indirectly forward the question of tie

^^etSrfunds desirability of the Government taking over the railway, and working the railway for
RaUway. the benefit and development of the country. The railway, then coming into fcia
hands of the Government, will be managed by the Government, and then the profits
which will be made will be merely sufficient to pay interest on capital and sinking;
fund. Then the railway rates will be reduced to such an extent that all industries,
whether they are mines, manufactures, or agriculture, will be stimulated, and will all
benefit to such an extent that they will work hand in hand for the general developr
ment of the country. There are many reasons why the public wish to see the
railway in the hands of the Government — not only to do away with the enormous
charges, but to have the railways as an integral part of the institutions of the country.
Then we can expect that railway rates and general management of the railway wul
be subject to public opinion and the direct control of the Government. We do not
say that the general management of the railways should be altered so far as the
interior personnel is concerned, but as regards the higher officials, and that these
should all be controlled by a Government department. Then, of course, we can
expect redress, and it will tend to the development of the country.

Native labour. Now, witli regard to native labour. You refer to the ill-treatment and hardships

which the natives have had to imdergo in coming to and travelling from these fields;
there is no doubt that from the reports we get, the boys are really under very
great difficulties whilst coming to the fields — if they come on foot — and also whei
they go away. Your experience is also in that direction ? — In our business we do
not employ the class of natives who come to work on the mines ; the majority of the

Mr. H. F. E. Pistorius' Evidence. 289

boys we employ, for instance, in our works, are boys who come from Natal, Cape
Colony, or Basutoland, and they come by railway.

But does it come within your knowledge, irrespective of your business, that the
boys are subject to ill-treatment? — That is another reason why the railways should Transport of na-
be in the hands of the Government : that they will grant facilities to bring boys from
their homes and back again in perfect safety, and in a short space of time.

And also that the rates might be lowered, still leaving a profit to the railway ? —
Certainly. In connection with native labour, I would like to say that at a meeting nudt Uquor
of the committees of the Chamber of Commerce and Mercantile Association yesterday, *'***^'
a resolution was passed that I should inform the Commission in connection with the
native labour question, one of the greatest difficulties which the mines experience with
the question of the illicit liquor traffic along the line of reef, whereby a very large
number of natives are incapacitated from performing their work for perhaps a third
of the week. Provided this liquor traffic was under oetter control, the miners would
have the services of the boys for full time. As a remedy in connection with this
matter, they suggest that, instead of a fine, imprisonment should be substituted, and
if such were adopted, they feel that a great deal of the present illicit liquor traffic,
which is a source of annoyance and inconvenience to the mines, would be removed.

Do you think that the illicit trade to natives is such a remunerative one that the
fines are readily forthcoming ? — I do not know that for certain, but I have heard that
bottles of brandy are sold for 5s. and 6s. which cost Is.

Under these circumstances, it would certainly appear that imprisonment would be
a very much more severe remedy than a fine ? — My own opinion was that it was a very
drastic resolution, but when other members gave their experience and said that these
illicit dealers were fined once, twice, and three or four times, and it did not prevent
them from canying on the business, I came to the conclusion that, under these circum-
stances, nothing but very drastic measures would prevent the continuance of this
business, and euuse an improvement in the natives in physique, and an advantage to
the employers and mines.

Mr. de Beer.

There are two institutions in Johannesburg of the same kind, the Mercantile '^'l?*""^^^
Association and the Chamber of Commerce — have they got the same object in view ? sooiation and

Viie Johannesburg

itJo. ^ ^ Ohamber ol

Then why should there be two ? — It is difficult to give an explanation to that, commerce.
We work hai-moniously together for the prosperity and advancement of commerce.

Would it not be better to have amalgamation instead of harmonious working ? —
I suppose it is a case of " many people many minds."

Witness said that no bricks could be made by machinery because there was a con- Brick - making
cession given. The quantity of bricks made certainly did not improve the quality. °°° *^°'
What is the price of machine-made bricks ? — About £4 10s. per 1,000. Price of bricks.

It is a very high price. — Yes, under ordinary circumstances it should be about
£3 per 1,000. That would be a good price if brick-making was open to the public.

Now, take the same class of bricks, hand-made ; what could they be mfiide for ? —
There is a difference between the two, A hard-pressed brick, made by machinery, is
very much better than a soft-pressed one made by hand. There is no comparison.

You say that there is a heavy tax on food-stuffs. It is not an ad valorem duty of import duty on
6 per cent, only ? — Oh, no. There is an ad valorem duty of 7^ per cent., with the
aaoition of 20 per cent. ; or, in other words, we have to pay 7 J per cent, on £120, and
that brings the duty up to 9 per cent. In addition, there is a special duty on different
articles of commerce. • .

280 Mr. J. B. Robinson's Evidence.

Mr. Brakhan,

^"quor.**^* ^ ^* ^ ^®^ ^^ your statement that you say you consider many of your companies have

suffered greatly through the illicit and unrestrained supply of strong drink to natives
Where principally are these canteens situated which have done this harm to the
industry ? — At Randfontein.

Are some of these canteens situated on mining areas ? — Some are situated on
stands on claims, and I think all the claims adjoin the mijnpacht

Liquor licencee. The law as it was promulgated some time ago provided that no canteen licences

shall be permitted on mining areas? — Mr. Langermann, my representative at that
time, brought on action before the Court with regard to the decision arrived at by the
Licensing Court. The Court gave judgment the other aay reversing the decision of
the Licensing Board. To show how matters are complicated, there is a licensing case

f)ending the decision of the Court, and the Licensing Board granted these men a
icence.
^iSnteeM^^n Then you hold that it would be a good thing for the natives that no licences

mining areas, should be issucd ou mining areas ? — Certainly, it would be good for them. Of coarse,
if the industry is unhampered with such drawlmcks as the sale of liquor to natives, it
stands to reason that the whole State must benefit by it. I certainly say that no
licences should be granted on mining areas.

Then you hold that these canteens on mining areas, although they are now only
permitted to sell to, white people, yet there is a great deal of likelihood that they wifi
also sell liquor to natives? — Oh, yes. The natives are seen carrjdng any numoerof
bottles of brandy.

You think the argument of the Licensed Victuallers' Association, that these

Seople can only sell to white people, does not hold good ? — Certainly. I am sure it
oes not hold good.

You have given your opinion with regard to the article which appeared in
Taxationofgoid. Machinery. Now I take it that this article will lead people to believe that the gold

f)roduced is really the last product of the company. Now, don't you hold that the
ast product of a company is the dividend which it pays ? — Yes.

Don't you think that if this suggestion would be followed upon, that these p<w
mines would be very much handicapped in comparison to the rich ones ? — ^In what
way?

Because I take it, the poor mines would have to pay the same amount of their
production, although their profit is minimum ? — Certainly. It is a dangerous policy
to introduce such a thing. It will have a very injurious effect if you tax gold.
Taxation of divi- Dou't you think it is much more advisable to introduce a tax on dividends?— I

dends. object to that also. I don't say that for any personal reason. But I say this : that^

We do not anticipate, if these reductions are made, that in the long run the
Government will be on the wrong side with the budget. Yet it may be necessary.—
Loan for public Thcv wou't be ou the wroug side. They want to raise a million to-morrow for paUk
works deair- ^Q^ks, and then it is off the revenue of the country. It is easily adjusted. There is
no danger of the balance getting on the wrong side.
Taxation of gold If it camc to a question of whether the gold product or dividends should be taxed,
repr^eniwef would you uot prefer that dividendg rather than gold be taxed ? — I don't prefer any-
thing of the kind, because I think you are starting a dangerous theory. You have

Mr. J. B. Robinson's Evidence. 281

BO idea what you are doing. If the outcome of the Commission's work is to tax
dividends or gold I should oe sorry you have been appointed on the Commission,
By that tax you are not going to benefit this country. You should wait until cir-
cumstances arise before you raise this question. Yoi; should not start this question
at a moment like this. You should see whether you can reduce taxation, and how to
leetore confidence and bring back the prosperity of the country ; you should not seek
an outlet of this nature. Why, you will completely frighten people at home.

It has been started in the papers, and I want to point out the danger Yet are
there not other countries where tney have an income tax ? — Yes ; but I prefer a
country where there is no income tax.

But the question is — if the occasion should arise whether there should be a tax on income tax un-

Sid or on income, which would you prefer ? — I don't admit either. It is suicidal so TSmfJaL ^"
r as the industry is concerned.

I don't think we can argue that way, as in well established countries an income
tax does exist. — In well established countries you have a great many industries. Here
we are dependent entirely upon the industry — the mining industry, which is the back-
bone of the country. If, as m Germany or England, there were all kinds of industries
of their own, of course the position would be aifferent, but here the whole position
depends upon the profitable working of the mines, upon inspiring people in Europe
with confidence so tnat they will invest in the country and assist us in developing the
resources of this country. If you once begin to tax gold or tax dividends, you will
certainly do an immense amount of harm. You will stop that good which we all
anticipate will follow the action of this Commission.

I personally hold that it would be better for the welfare of the mining industry,
that it should get every possible facility from a reduction of railway rates and other
sources. In that case the revenue of the State would be curtailed, and ways and means
should be devised to balance the budget. But it should not be a tax on the production Taxation of gow
of gold if other means can be found. — There should not be a tax on gold or dividends. "™*«*^^*«-
Other ways can be found.

I have previously referred another witness to a certain point in the Gold Law, Taxation of gold
namely, where the Gold Law provides that in the case of mijnpachts Government have S!^^t8°°
a right to 2^ per cent, on the gold produced. Do you consider that a good or a bad
proposition ? — It is a very bad one. I have often discussed that with high oflSlcials,
-and they themselves knew that if they imposed that tax it would have a very bad
effect

Now, the Government not having imposed the tax heretofore, is not that a
guarantee that Government is not going to impose a tax on production or dividends,
^hich is likely to be injurious to the industry. — I am quite sure the Government won't
■do such a thing.

Do you consider that the Gold Law in other respects, say, as regards the tax im- ciaim ucences.
posed on claim licences, is reasonable, and not oppressive ? — I think so, more especially
• xiow they have made the alteration witt the Mining Commissioner's department, who
liave got power, according to the Gold Law, to regulate what amount shall be paid as
tdaim licences and what as pi\)spectors' licences. Distinction of

You think, then, that aiggers' licences should only be asked for on claims actually j!^Si?^ifc«r
"Worked ? — That is a matter for consideration. It is a point I have not thought of. <».

Mr. Smit

You said this morning, in reply to a question, that you would expect a bigger increaMdoutput
n)atput when more mines were working? — Yes, in those mines with improved
^machinery and increased steam power.

282 Mr. H. F. E. Pistofius' Evidence.

The initial expenses of a mine, the development, etc., are much heavier than the
expenses when it is started and in full swing ? — Yes, much heavier.

These new mines which are started, are they so good that they will pay expenses^
seeing that some old mines had to close down on account of not being able to pay
expenses ? — Yes.
^^Stof ej^ ^^^ think the expropriation would create a good impression not only here but in

priation in Europe ? — YcS.

^^'^^"^ But why ? — Because the impression is only to be formed that when the Govern-

Have they got such a lot of interest in our Government that they are anxious the^
Government should have good assets ? — I am taking up the position that this railway
is a very important factor in the welfare of the country, and when I come to consider
that we look towards Europe for our support in making this country what it actually
is at the present time, and what I maintain it will be through the inflow of further
capital, I say to bring about that desirable object the Government should be possessed
of the railway to restore that confidence, and make the investing public at Home
realise that the asset is the property of the Government, and they can do with it as
they think fit.
^mhSt*pre?e?- ^^^ supposiug tariffs are put on an equitable basis in order to meet all the require-^

able to reduc- mcuts of the Commissiou, does it then concern you much whether it is run by a private
hSm aioneT*^ Company or by the Government ? — I have answered that already. It would be a ver^
good thing if the tariffs were brought down. It would be of great assistance to tlxe
people of this Republic. But I am taking a higher and more comprehensive view. It
is a question of very high finance. It will have a moral and financial effect through*
out Europe, and would have a great effect on the future progress of this country.

This concluded Mr. Robinson's evidence, for which he was thanked by the
Chairman.

Mr. H. F. E. Pis- Mr H. F. E. Pistorius Submitted the following statement from the Joint Com-
dence.^ ^^* mittcc of the Chamber of Commerce and Mercantile Association : —

This committee, representing the merchants and traders of Johannesburg, makes

the following statement regarding the present position of the mining industry, always

Mining industo' bearing in mind that that industry is the financial and industrial mainstay of wA

l"i^?J?a!fi?-1 country. Without the market afforded by the mines other industries could not exW

industrial, irn i ti» • n • i* i* •• /r* il

mainatay of m the Transvaal, and this economic fact is so far-reachmg m its effect on local

coun rj'. industries that even agriculture comes under the same rule. The successful working

of the mines affords a basis for industrial, agricultural and commercial developmeni

in many other ways. Admitting this fact then, the first necessity for the prosperity

of the country from an industrial standpoint is to ensure the success of the minea

UnjuBt burdens We are of Opinion that at present the mines have to carry many heavy and indefen*

on mines. gjj^j^ burdens. The chief of these are the monopolies for railways ana for explosivea

We ask the favour of your careful consideration of the following burdens that can be

readily removed : —

Eaiiway mon- Railways being necessarily a monopoly, and in all countries superseding the hi^

opoiy. ways of the country, are consequently under different economic and administrative

conditions to other industrial enterprisea The public have to be guarded against ti»

possibilities of such a monopoly as that afforded by a railway, being used to tta

general disadvantage. In England and America the average dividends paid by tha

Mr. H. F. E. Pistorius' Evidence.

283

railways amount to between 3 and 4 per cent, per annum. In view of these facts the Netherlands
rates chargtd and profits secured by the Netherlands railway cannot be justified. ^^^
The rates obtaining on the Netherlands Railway are far in excess of those ruling on
all other lines in South Africa. The very great differences are shown in the following
tables : —

Nonnal

per ton

per mile.

2-34
2-34
304
407

7-7

506

4-27

Cape

Orange Free State
Natal

Portuguese . . .
Netherlands, via Cape
„ „ Natal

„ Delagoa

Agricultural Produce.

Cape, for 23 miles

Orange Free State, for 23 miles ...

Natal, for 13 miles ...

Portuguese

Netherlands, via Cape and Orange Free State

„ „ i^ auai * • « * • •

„ „ Delagoa Bay ...

Intermediate

per ton

per mile.

304

3-53

7-7

3-82

3-69

Bough

per ton

per mile.

1-3
1-3

1-94

2-44

7-7

3-26

2-54

Per ton per mile
plus terminals.

id.

id.
Ifd.
2-2d.
31d.
3-26d.
2-3d.

Comparative ta-
ble of South
African rail-
way rates.

The mines mainly consume heavy goods that have a low prime cost in the RaUway rates on
<»aiitries from which they are brought. The following table will illustrate the '^^^^y 8^^**^*^
position : —

Cargo of Swedish deal

„ Pitch pine
300 casks cement ...
1,000 cases paraflSn
1,000 boxes candles
120 drums grease . . .
100 shoes and dies ...
Steel rails

Prime oo(t.

Bail chMsn

£ B. d.

£ 8.

1,484 10 5

2,658 13

2,379 7 1

7,361 8

80 16 10

405 0

207 0 8

306 13

347 11 9

104 12

19 9 1

25 15

170 15 8

64 11

69 3 11

118 12

In the United States of America the railway lines cost about £12,000 a mile to
Udid and equip, and the average rate charged on all goods is 2'5 of one penny per
ton per mile. The high rate charged by the Netherlands Compan^"^ for coal traffic is an
especial hardship on the mines. The bulk of the coal traffic is carried on the Band
Tram. The rates vary according to distance from 208d. per ton per mile to 2'92d.
In Natal the rate is |d. per ton of 2,2401bs. per mile. In the Free State the rate is
^d per ton of 2,0001ba The coal mines produced 1,437,297 tons during 1896. It is
estimated that the railway received £350,000 for transport of the coal. If the Free
State rate were adopted tnere would be a saving to the mines of over £200,000, and
an ample margin would still be left for the railway. The management and general
iHTorking of the railway also leaves much to be desired. Most of the ^staff appear to
be without railway experience and administer the railway with all the disadvantages
to the general publit tnat an unchecked monopoly will allow. The higher adminis-

Coet of equip-
ment and rates
of railways in
the United
States.

Netherlands
Railway coal
rate.

Natal Railway
coal rate.

Free State RaU-
way coal rate.

Netherlands
Railway a d -
ministraticm.

284 Mr. H. F. E. Pistorlus' Evidence.

tration is also inefficient. This is conclusively shown by such facts as the Lingham
contract — a document so loosely drawn as to have cost the railway £60,000 to get it
cancelled — and the dynamite disaster. Competent administration would have avoided
Dynamite mon- both thcse cvils. Dynamite is another monopoly that bears heavily on the industry.
»poiy. The present lowest price of No. 1 dynamite is 85s. at the factory, plus 2s. 6d. per case

iid^T»iSvaai ^^^ delivery. We are informed that No. 1 dynamite is selling in Germany at 218. 6d.
pricei. per case. It would cost lis. 3d. per case to land it here, making the landed cost

32s. 9d. For the purpose of comparison, we will take the price at which Nobels con-
tracted with the mines in 1893. That was 40s. a case. To that add 5s. a case, as now
received by the Government in lieu of duty, bringing the price to 45s. a case. The
Government agent sells at 85s., and thus has a margin of profit of 40s. a case. The
consumption is equal to 250,000 cases a year, and the mines therefore pay £500,000 a
Dynamite agen- y^^r morc than the market value of the article. Amongst the excessive charges
cL!ree/°^***^ making up this enormous sum are the agency charges levied by Mr. Lippert and the
Cement. royalties m favour of Messrs. Lewis and Marks. Cement furnishes another burden

for the mines, increases the cost of building dwelling-houses, and generally has been
European and to the great disadvantage of the community. First-class cement costs in Europe
cesfOT cement 5s. 6d. per cask of 4001b8. gross weight. It costs 44a a cask to bring here. The con-
sumer IS not only burdened with the heavy cost in freight and railage in bringing the
Duty on cement, ccmcut to this market, but has to pay a protective duty of 12s. a cask, so as to bolster
Cement factory, up the local factory. The protection given the local factory is 128. a cask through,
the Customs and 7s. 8d. through excessive railway charges. The local factory pro^
duces equal to 30,000 casks per annum, and is, therefore, subsidised by the State to-
the extent of £28,000 per annum. We submit that such an anomaly as this subsidy
to a small industrial company (which is only a parasite on the main industry of the
country) should be swept away.

The evidence herein already adduced regarding the disastrous experience gained

in supporting the dynamite and cement concessions indicates the evils springing from

Brick^kiiig such a poHcy. The concession to manufacture bricks is another that bears heavily on

con on. ^j^.^ community, and should be abolished, and so also should the heavy duty on

printed matter.

Incidence of tax- The incidence of taxation, by which the necessaries of life carry such a heavy

ation. share of the burden, should be amended. It is not only an economic mistake, but, in

our opinion, a positive wrong to tax the bread of the people. During 1896 gitdn and

Grain and flour flour to the valuc of £1,000,000 wcrc imported. Although the special duties were

duties. suspended the amount paid in ordinary ad valorem duties amounted to fully £60,000,

and this heavy burden was mainly contributed by the wage-earning portion of tte

Import dues, community. The Customs charges are altogether excessive and require material

reduction. In all other South African States and Colonies machinery is imported

ii^ortduty on free, but here we have to pay £1 168. per cent. This charge directly bears on the

"^* mines and should be removed Amongst general questions that have already cojoe

under enquiry by the Commission, are white labour, native labour, over-capitalisation

and merchants profits.

White waffet ^® ^^® ^^ Opinion that no material reduction of white wages will be poeaible

until the cost of living has been reduced. The present policy of high tarifib unduly
enhances the cost of necessaries, checks enterprise, and produces such a high cofit w
living that a workman earning £20 a month can but barely maintain his wife and

Native labour, family. Native labour is an equallv important factor to the mines. We are confideot
that if native labourers were afforded lacilities and due protection in coming to thesB
fields, the supply would be so great and continuous as to enable wages to be rediwed
to an average of 35s. a month. The ill-treatment and hardships of natives whiU

Mr. H. P. E. Pistorius' Evidence. 285

coming to and travellinff from these fields, the injustice with which they are treated

mider the Pass Law, and the oppressive regulations imposed on them cost in extra

wages alone fully 25s. a month. Estimating for 70,000 natives working for wages in

this district, that shows a loss, of over one million per annum. To illustrate the

oppressive working of the Pass Law we adduce the following recent incident : — A MaUdminirtra-

boilding contractor absconded from Jeppestown and left 25 natives without a l^w. ^

fortnight's wages and without their passes. The chief contractor on the job decided

to carry on the work, and arranged with the natives for them to continue at work.

He went to the Pass Office, reported the case, and asked for new passes for the boys.

He was promptly refused, and told that the whole lot would be arrested and fined or

imprisoned for being without passes. Such administration can only have one result,

ana that is to drive away labour, and, as a reflex result, increase the cost of what

is left.

Over-capitalisation is a point that appears to have occasioned some misunder- over - «^pJ^<^u«-
standing. Whether a mine is over or under capitalised does not in any way afiect * **** *"'
the working charges. It is purely a market question, and affects the price of shares.
The industrial question for the mines is whether or no they can proauce 20s. worth
of gold at below a coat of 20s., and therefore at a profit. How the mine is capitalised
does not affect the industrial problem either way.

Merchant's profits in Johannesburg are on a narrower margin than in any Johannesburg
mining camp in the world. The leading lines used in quantities by the mines are proflto.***"*^
contracted for at a margin of the barest possible profit, and we will submit proofs of
this statement.

Chairman.

As Chairman of the Chamber, I should have expected you to have given some ^^^^JSkSiiSi©^**
indication of the measures required to facilitate commerce and agriculture. In your
statement there is very little on that point. You practically go over the same ground
as traversed by mine managers. lean understand that the prosperity of the mines
in a great measure influences the prosperity of commerce and agriculture. But still
it cannot be denied that commerce and agriculture are separated from mining, and for
the prosperity of the country generally agriculture and commerce should go hand in
hano. Your report suggests no redress or measures to be taken to relieve the
necessities of commerce and agriculture. Now, what can be done by commerce to
assist agriculture ? The only point I find in your statement on agi-iculture is this—
that the only thing done by the Government in order to protect the agriculture of
diis country is that the commercial people want to take away — that is, the import
duty on food stuffs. — In the first place, I should like to point out that my report import duty on
refers to the price of labour, which would materially assist commerce and agriculture, coirtofuSour.
and in order to get commerce and agriculture to nourish in this country, the mining commerce uui
industry, which is the backbone of this country, should flourish. That is why we say J|Sient*^on
that the tax levied by the railways, dynamite, and native wages should be reduced, mining Indus-
As shown in the question of dynamite alone, £500,000 could be saved in the way of Free^tradeindy-
free trade in dynamite. Take railway statistics. For instance, on a load of coke of a Bailw^y^tee
prime cost of £68 10s., the railway carriage was £294. The two Colonies took 293

Jer cent, of the cost, and the Netherlands Railway for carrying from Vereeniging to
ohannesburg got 136 per cent, the entire cost being from Europe to Joliannesburg
680 per cent, on the prime cost. So the load which originally cost £68 10s., cost
landed here £455 10a In the matter of pig iron, a lot which cost in England £149,
had to pay £294 for transport. The Free State and Cape Colony drew 134 per cent.
for carrying, and the Netherlands for a distance of 52 miles got 63 per cent. The

286

Mr. H. F. E. Plstorius* Evidence.

Agricnlton*

cost of laying down a quantity of pig iron costing in Europe £149 la 3A increases by
the time of delivery here to £514 la 8d. That shows that those heavy railway
charges made it so expensive that it must be a heavy burden on the mining industry.
Then you say that the Chamber of Commerce tries to*take away the only protection
granted to agriculture in this country by suggesting the removal of the tax on

'"toSSitSfc ^° foodstuflfs. If you take the tax on foodstuffs, you will find that not alone is the tax
the usual nine per cent, ad valorem, but also a special tax in many cases 100 per cent
Notwithstanding the expense of this heavy tax very little is coming into the country
and up to the present that has not improved the position of agriculture in the
country

It has not been shown what we have to do to assist agriculture. Pig-iron and
dynamite, which you speak about, do not concern agriculture ; they concern mining.
I want to speak exclusively about agriculture. I think you will agree with me. that
it is desirable that agriculture, as well as the mines, should be developed in this
country. Foodstuffs, which to-day are brought into the country, might be produced in
the country itself, and that would also be a great support to commerce. There is
hardly any necessity to travel over the same ground as nas already been gone over by
other witnesses. What the Commission would like to know from the Chamber of
Commerce is, what are their requirements, and what can be done to foster agriculture,
the importation of machinery, etc. As long as we can import sheep here it appears to
me that Mr. Pistorius does not mind what becomes of the agriculture of the country
I take it that the prosperity and advancement of the goldfields is a big factor in the
country, but the backbone — the sinews of the country — is agriculture. That is why
we would have liked very much some opinion on those points. You have shown us
how agriculture and commerce can go hand in hand. There is another question I want
o' to speak about — the importation of iron. It is stated that this Republic contains iron
as good as any other country. Don't you think there is a chance of getting iron out
of this country — that is, instead of importing it at a high cost ? Would it not be
another development of industry, providing work for thousands of people, and which
would keep the money in our own country ? — In reply, I would like to say to tb^
Chairman, regarding the prosperity and advancement of agriculture, that I acknowledge
it is the backbone of every country. But in this country, so far, agriculture has nob
provided for the wants of the population. The prosperity of agriculture at the present
moment is dependent on the prosperity of the mining inaustry, and although there is
a big market here and good prices for all produce, agriculture has only advanced
very little. How can you then say that the Uhamber of Commerce or the population

Amount of food, want to take away the only protection of the country ? The market shows that moBfc

ed. ^ of the produce on the market here comes from the Free State and outside. Regarding

iron, I believe there is lots of iron in the country, but up to the present I cannot see

w^rkUjr 0^ how it would be possible to get iron out under present conditions. If transport w«rc

ora. easy and cheap, and wages to get ore out of the ground were cheap, then I would say,

** Yes, let US get the iron out of our own country." Until such times as the conditions

are altered in such a manner that it can be worked cheaply, it would be impossible to

compete with Europe.

Mr. Jovhert,

I want to know in what way is the prosperity of commerce dependent on the
prosperity of the mining industry. — Here in Johannesburg they are so clos^
connected that the prosperity of trade or commerce entirely depends upon tta
prosperity of the minea

And the prosperity of the mines and commerce chiefly depends on the proeperi^

Importation

iXODt

Afn^ionltme.

and
the mining in-
dmtry.

Mr. H. F. E. PIstorius' Evidence. 287

of agricultui-e ? — The prosperity of the country depends upon the prosperity of the
mines.

The country cannot exist for mines and commerce without agriculture. Don't
yon consider that the regulations which press on the mines and commerce also press on
agricoltura The commercial men do not pay import duties ; the farmer pays that. —
Thai indirect taxation is paid by the whole population. The reduction in railway rates
does not only affect the mines and commerce, but also the farmer.

Mr. Brakhan*

All the matters which have been laid before the Commission so far are very clear on
some points, except dynamite. The dynamite question seems to be shrouded in a good
deal of mystery. We cannot arrive at any particulars as to how much of it is really
manufactured here, and in order to arrive at some conclusion about the question I
should like to ask you certain things. Can you inform us how much nitrate and how
much sulphur has oeen imported into this Republic by the various railways ? — I don't importation of
think that the Customs returns show how much of these goods are separately dynamitic
imported. And then, besides, sulphur is largely imported in connection with the Scab »""»^*c^'«-
Act, for the purpose of sheep dipping.

You think it is difficult to find out how much sulphur has actually found its way
here into the Transvaal? — There would be no difficulty, provided the Customs
authorities took a separate account of it.

I should like to put a suggestion to the Chamber of Commerce and Mercantile
Association to try to find out what the quantity has been, and also what quantity of guhr
has been imported, and what quantity of ready-made dynamite and nitro-gelatine. I
Ihink the latter points should not be so difficult to answer, as the data could no doubt be
got from theports. Nearly all the dynamite which comes into South Africa is used in this
Bepublic — I don't think that will help you. The quantity of dynamite imported into
this country the Government have the statistics of, and guhr also. The dynamite
factory could produce that to the Commission, and therefore there would be no
occasion to see that specially through the Customs. These matters are all in the hands
of the Government.

I think it would be wise if some evidence came from outside quarters. — You mean
on this question. I don't see that would help you at all, because the whole of the
dynamite consumed on the fields must come through the dynamitic factory, and there-
fore the whole information is at the factory, and in the hands of the Government, and
IB available, I suppose, for this Commission. The Government can call upon the factory
authorities to say what quantity of these goods has been imported.

With regard to the revenue derived from the importation of dynamite, I was glad state jjj^jnue
to see that you take a broad view of the case. I think everyone must know the monopoly.
Government is quite entitled to make a profit out of it, and I hold that your opinion
18 that the monopoly make too much profit on this very necessary article ? — Far too
much.

And jrou hold, as a mercantile man of experience, that there would be no
Acuity in importing dynamite at a reasonable rate, and in ample quantities to
fitipply the demand ; and if the Government were to receive a duty of lOs. a case, it
Jould mean about £125,000 per annum, and yet you think the mining industry would
We enormous benefit ? — Certainly.

I see under taxation with regard to the duty which is imposed on machinery, import dnty on
Joa do not say it is exactly high, but that it should be removed ; don't you think, "^^^^^'y
^^^g other taxation into consideration and the general conditions which prevail here,
^^ wis duty of IJ per cent, is a low one ? — In comparison with others it is.

288 Mr. H. F. E. Pistorlus' Evidence.

I think it is much more important that the railwav rates should be cut down to a
reasonable extent, and this would make an infinitely bigger amount than this duty of
1^ per cent, which I understand is levied on the cost of machinery in Europe, plus
20 per cent. ? — Yes, making it 36s. per cent. I agree with you that this does not
affect the question very materially, but taking into consideration the development of
the country, and a new country, particularly where you have many mineral resources
to be developed, you want your machinery brought into the country not only for the
mining industry, but for agricultural purposes, as cheaply as possible ; therefore, the
import duties should be taken off and railway rates should be brought down to a
reasonably profit-paying basis.

I take it your remark in your statement refers to mining machinery ? — In this

particular instance it does, but, we take it, the prosperity of the mines means also the

prosperity and development of other industries in the country. We take it the

mining industry is the first point with us. Every other industry is dependent oi^ it,

^d2rt5rfeB**d^r^ and if you develop the mining industry you develop agriculture and the other

miStol^indus" manufactures in the country.

tiT. I personally hold we ought to be fair in our demanda We ought not to ask the

Government to cut down everywhere. — That is quite right. If the price of dynamite^
is reduced, and if you reduce the rates charged by the railway to a fair profit-payinj
basis, you will help the country forward to such an extent there will be no reason o^
complainti

On the other hand, I do not think anyone connected with the miniix^
industry will grumble if they have to pay the rate charged on the cost of machinery*
in Europe ? — I do not say so either. The object of bringing forward this question of
the enormous charges of the railway is to bring indirectly forward the question of tie
^iands desirability of the Government taking over the railway, and working the railway for

R**i^3'- the benefit and development of the country. The railway, then coming into th^
hands of the Government, will be managed by the Government, and then the profits
wliich will be made will be merely suiBScient to pay interest on capital and siaking
fimd. Then the railway rates will be reduced to such an extent that all industries,
whether they are mines, manufactures, or agriculture, will be stimulated, and will all
benefit to such an extent that they will work hand in hand for the general develop-
ment of the country. There are many reasons why the public wish to see tM
railway in the hands of the Government — not only to do away with the enormous
charges, but to have the railways as an integral part of the institutions of the country.
Then we can expect that railway rates and general management of the railway wul
be subject to public opinion and the direct control of the Government. We do not
say that the general management of the railways should be altered so far as the
interior personnel is concerned, but as regards the higher officials, and that these
should all be controlled by a Government department. Then, of course, we can
expect redress, and it will tend to the development of the country.
Native labour. Now, with regard to native labour. You refer to the ill-treatment and hardships

which the natives have had to undergo in coming to and travelling from these fields;
there is no doubt that from the reports we get, the boys are really under veiy
great difficulties whilst coming to the fields — if they come on foot — and also whi
they go away. Your experience is also in that direction ? — In our business we 4>
not employ the class of natives who come to work on the mines ; the majority of the

riation of

ether]

Mr. H. F. E. Pistorius' Evidence. 289

boys we employ, for instance, in our works, are boys who come from Natal, Cape
Colony, or Basutoland, and they come by railway.

But does it come within your knowledge, irrespective of your business, that the
boys are subject to ill-treatment? — That is another reason why the railways should Tnuwport of na-
be in the hands of the Government : that they will grant facilities to bring boys from
their homes and back again in perfect safety, and in a short space of time.

And also that the rates might be lowered, still leaving a profit to the railway ? —
Certainly. In connection with native labour, I would like to say that at a meeting nucit liquor
of the committees of the Chamber of Commerce and Mercantile Association yesterday, *'**®'
a resolution was passed that I should inform the Commission in connection with the
native labour question, one of the greatest difficulties which the mines experience with
the question of the illicit liquor traffic along the line of reef, whereby a very large
number of natives are incapacitated from performing their work for perhaps a third
of the week. Provided this liquor traffic was under oetter control, the miners would
have tlie services of the boys for full time. As a remedy in connection with this
matter, they suggest that, instead of a fine, imprisonment should be substituted, and
if such were adopted, they feel that a great deal of the present illicit liquor traffic,
which is a source of annoyance and inconvenience to the mines, would be removed.

Under these circumstances, it would certainly appear that imprisonment would be
a very much more severe remedy than a fine ? — My own opinion was that it was a very
drastic resolution, but when other members gave their experience and said that these
illicit dealers were fined once, twice, and three or four times, and it did not prevent
them from carrying on the business, I came to the conclusion that, under these circum-
stances, notliing but very drastic measures would prevent the continuance of this
business, and cause an improvement in the natives in physique, and an advantage to
the employers and mines.

Mr. de Beer.

There are two institutions in Johannesburg of the same kind, the Mercantile ''*^*°°^^
Association and the Chamber of Commerce — have they got the same object in view ? sedation and

-y Johannesbui^

— 1 es. Chamber o I

Tlien why should there be two ? — It is difficult to give an explanation to that. Commerce.
We work hamioniously together for the pi-osperity and advancement of commerce.

Would it not be better to have amalgamation instead of harmonious working ? —
I suppose it is a case of " many people many minds."

Witness said that no bricks could be made by machinery because there was a con- Brick • making
cession given. The quantity of bricks made certainly did not improve the quality. ^
What is the price of machine-made bricks? — About £4 10s. per 1,000. Price of bricka.

It is a very high price. — Yes, under ordinary circumstances it should be about
£3 per 1,000. That would be a good price if brick-making was open to the public.

Now, take the same class of bricks, hand-made ; what could they be made for ? —
There is a difference between the two. A hard-pressed brick, made by machinery, is
very much better than a soft-pressed one made by hand. There is no comparison.

Ton say that there is a heavy tax on food-stuffs. It is not an ad valorem duty of '"J^J^^^y **"
5 per cent, only ? — Oh, no. There is an ad valorem duty of 7 J per cent., with the
addition of 20 per cent. ; or, in other words, we have to pay 7 J per cent, on £120, and
that brings the duty up to 9 per cent. In addition, there is a special duty on different
articles of commerce.

290 Mr. H. F. E. Pistorius' Evidence.

Does the 9 per cent not include the special duty ? — Na
Maudministra- Now, with regard to the Pass Law. You give an instance of a kafilr being ill-
tion of Pass ^j^qq^^q^ j)q yQi^ kuow of any other cases ? — No, I am not intimately acquainted with
the law. Other witnesses will doubtless be able to give you many instance&

Are you personally acquainted with the case you cited? — No, it was reported to me.
co8t of native How do you make out the 25a extra wages required to be paid to the boys ? — We

labour. have to pay them 25s. more than we ought, owing to the stringent laws, and the lack of

protection afforded to them on the roads. If they were better protected, and could be
brought here cheaper, I think we could get them to work for 35a Take a contractor
on the Natal Railways employing a number of boys. While they are in Natal terrri-
tory they pay the natives 30s. a month, but the moment the boys cross the border at
Volksrust, they want higher washes, because they are taken up and fined for the
smallest offence. Therefore they must be paid at a higher rate to compensate them.
^won^'^^^ ^^^ refer to over-capitalisation of the mines. Do not you think that over-

capitalisation affects the credit of the country as well as the mines ? — No, not the
country so much. It affects the shareholders, not initially, but when they find out that
their mine has been over-capitalised ; but that is not the question. The question is
whether the mine can be worked at a profit.

We are well aware of that, but we consider that, eventually, over-capitalisation of
mines will cause the credit of the country to suffer. — It may eventually, but it is
impossible to find out whether the mine has been over-capitalised. When a property
is floated, a large sum is sunk in the mine, and, as development proceeds, it may be
necessary to increase the capital, and yet after all the mine might be found un^yable.

Do not you think too much money is invested in the properties ? — No, besides the
importation of money would not detrimentally affect any country.

Look at Capetown. It is an old-established town. It has its port, and extensiv^^
commerce attends it. No one has thought of putting up such extensive buildinga
Perhaps, but the buildings in Johannesburg are erected in many cases out of mone
made on share transactions in Europe.
^ contTMt****™ ^^^ refer to the Lingham contract. What do you mean by the contract ? — Tt\e

contract entered into between Lingham and the Netherlands Railway Company to
carry wood from Delagoa Bay at a lower rate than the ordinary tariff. It was found
that it did not pay the Railway Company, and they cancelled it ; and it is said they
paid Lingham £60,000 to get out of it.

Mr. Smit.

Do you know it for a fact ? — No.

Do you know that the contract was entered into ? — I cannot swear that it was
signed.

You should not make such damaging statements unless you are sure of them.— I
know that there was such a contract, but it was given to me in such a manner as to
preclude me from referring to it in detail. The Chamber of Commerce has the copy.
The Pass Uw. Do you think that the Pass Law, even if properly carried out, would be a bad law?

— I think that the law, if properly carried out, will prove a very good law, and it will
prevent desertion, because the boys deserting will be brought back to the mines fro©
where they ran away, by the administration. If the kaffirs once knew that they coaM
not easily escape, desertions would be minimised.

I think so myself. — Yes, perhaps not one in a hundred would desert. I consider
the fine of £3 a heavy one.

It was fixed for the purpose of deterring boys from deserting. — Yes, but still it i«
a heavy one. If there was an efficient and sufficient, staff, the boys would not deeeit

Mr. A. A. Noble's Evidence. 291

80 frequently. They never like to be brought back to the mines from which they
desert, and if they know that they will almost certainly be recaptured should they
desert, they will not run away.

But it is difficult to recognise a kaffir. — I don't know if you are acquainted with
the togt law in force in Natal. There they have headmen, who are appointed over
the kaffirs. He knows his boys, and it is his duty to bring back runaways. But
that, again, is simply an administrative matter.

You say that it does not matter whether a mine is over-capitalised or not, it ^^fJ^^SfSnw
would not affect the working costs. It will affect the dividends, though ? — Yes ; I
repeat it might affect the shareholders, but it has nothing to do with the working
oosta

It speaks for itself that it affects the payability of the mine. If a mine with a
capital of one million sterling paid 5 per cent., the same mine with two millions capital
would pay only 2^ per cent. ? — Yes, but you cannot find out whether a mine is over-
capitalised or not until the capital is exhausted.

Mr. Hugo,

When you referred to dynamite, what did you mean by agents' charges ? — It is Agente* c^ef
admitted that Messrs. Lippert, and Lewis and Marks, both get a royalty on dynamite. ^" *^

But you refer to agents* charges ? — Yes ; but dynamite is sold only by Lippert or
his agents.

Do you know the amount of royalty ? — No ; but I know that the price charged —
that is, 85s. per case — leaves about 408. per case for dividends.

Chainman.
You are the Chairman of the Chamber of Commerce ? — Yea

Mr. A. A. Noble was next examined, and stated that he was a merchant residing Mr.^A.Nobie*i
in Johannesburg, and Chairman of the Mercantile Association.

He said he confirmed the evidence of Mr. Pistorius, and he had made a few
notes in addition which he would give. Proceeding, he said : — Under the heading of
railways, I would give one instance in addition to what has already been given to Produce ratee on
show the very high rate charged by the Netherlands Companv on South African luSfway'
produce. The rate from Winburg Road to Mid-Vaal, a distance of 150 miles, is 6s. 8d.
per ton for the whole distance. The rate from Mid-Vaal to Johannesburg — 52 miles —
18 138. 4d., or double the amount for one-third the distance. Bearing on the lack of
encouragement given by the railway in favour of the Transvaal feniier, I have at MaUdministm
present a consignment of hay from Standerton, which left that village on the 27th SndsRiSwi^i
April The hay was delivered this morning after three applications to the railway
station to see what had become of it. No explanation oi the delay is given, and as
this was a trial consignment, it is quite possible that had it come within reasonable
tiuie two or three further consignments would have been here now. There is another
point we desire to bring out, namely, the manner in which the Netherlands Railway
^ftke use of the clause referring to goods carried at owner's risk. There is an instance
of a consignment — a truck load of grain bags — being despatched from Delagoa Bay in
June last year. It has not yet been delivered, and the railway department repudiates
JtB liability undei*the clause that the goods were carried at owner's risk, and as they
^ere lost the company was not responsible. The matter of expropriation of railways ExproprUtionoi
having been dealt with very fully by preceding witnesses, I desire merely to convey '•"^'^y'
to you that the feeling of the commercial community is entirely in accord with expro-

292 Mr. A. A. Noble's Evidence.

priation. The commercial community would hail with much satisfaction the
nationalisation of the railway, and is strongly of opinion if the railway were under
competent Government oflicers many of the complaints which have been justly made
against the Netherlands Company would he done away with, and the railway could
be in many ways of much more service to the community. To reduce the cost of
living so as to enable a reduction of wages to be made, I would suggest that the whole

.Special duties on of the spccial dutics ou foodstufFs now in force, and those held m abeyance by the
foodfltuih. Government, be abolished entirely. As an illustration, take a case of jam which costs
in Europe 18s. 6d. It pays to the Government of this State 12s. special duty, and
Is. 7d. ad valorem duty. In 1896 jams and confectionery, weighing 1,278,130 Iba,
valued at £26,393, were imported, and upon these items alone the special duty was
£15,976 128. 6d., and ordinary duties, £2,375. Thus there was £18,350 taxation in one
year upon articles which from a regular portion of diet among the poorer portions of
the community. Milk, which costs the same in Europe, bears no special duty, and is
sold in Johannesburg at 28s. per case, whereas the price of jam is 42a It is needless
to give any fuiiher details on this point. The removal of special duties will invari-
ably cause larger consumption. As an instance, during 1895, when special duties were
on, pork was imported weighing 432,980 lbs., and valued at £17,015. In 1896, while
the special duty was suspended, the import amounted to 1,529,310 lbs., valued at
£51,943. As a further relief to the commercial community, I would suggest that the

Tmiwferdutyon transfer duty on landed property be reduced. This, of course, will bear also on mining
ty. P'^P*'" properties, and we think should be reduced. Regarding the Pass Law, much has been

The pms Law. g^^j j before this Commission for and against this Law, and I may venture also to say

"^^ufiS* to*Paw *'^^^> ^^ °^y opiiiio^i ^^^ l^w is a good one in the main. But it requires amendment
Zaw. in some clauses. The clause which stipulates that a pass should be renewed on the

first of every month is unworkable, and frequently causes innocent natives to be
arrested and fined before their employers have had time to get a renewal of the pas&
An instance came to my notice in which a van-driver was arrested on his master s van
on the 1st April, at 11 o'clock in the morning. This arrest took place in spite of the
fact that the man was in possession of his pass and badge for the month of March.
It is acts such as these which make natives irom other States afraid to come here in
search of work, and when they come they demand higher wages to cover such risks.
It would be a good thing if the passes could be taken for a longer period than one
month. In Kimberley, where I formerly lived, it was possible to take out a native's
pass for twelve months, all payments for that time being paid when the pass was
taken out. A point which 1 have been asked to bring forward specially is that

sweepetaketuui relating to swecpstakes and lotteries. We feel that the evil is growing so rapidly that
lotteries. something should be done to put a stop to it. It is reported to me on good authority
that during the last race meeting over £100,000 was spent over these lotteries and
sweepstakes. It is in the experience of many traders that they cannot obtain pay-
ment during the currency of these sweepstakes. We also feel it is a cause of dis-
honesty. An instance was brought to my notice this morning. I cannot say it is ft
positive fact, but I believe it is true that recently a youth took three tickets and paid
for them in postage stamps. I think your recommendations might do something in
that respect

Mr. de Beer

Why was not the matter of sweepstakes referred to in the statement of tlw
Chamber of Mines ? Should it not have been referred to by the joint associations?—
I can only explain its omission as being an oversight

I have seen the crowd so large on race days that you could not get throQgi

Mr. K. Rood's Evidence. 293

— . - - ■

^mmissioner Street, and I feel that the Commission is quite prepared to act in this
liter. — We can, if the Commission desires it, bring further evidence on that point

Do you mean by taxation that some of the duties are so high as to put the goods import datiet.
t of the reach of poor people ? — Yes ; to a certain extent, certainly.

And if the duties should be reduced the poor people would be able to buy
eaper ? — Certainly.

Mr. Smit

In the evidence before the Commission, it has been suggested to take the duty off
le article and off another. Don't you think it is desirable to chuck the whole lot at
ice ? — No ; I don't think so. You must let me explain. I think the Government
venue is very large ; it can stand reductions. But, in the case of some reductions, if
le Government had possession of the railways, they would make them pay.

Mr. Jovhert.

You consider the expropriation of the railway desirable ? — Certainly. Expropriation of

Supposing the company are prepared to make reductions — the main point is the '***^''*^'
uestion of reductions — that would also satisfy ? — It might satisfy temporarily, but
ot permanently.

But why not ? — Because the Government can control it better.

What you are really asking for is {reasonable reductions in everything. After
liese have been made it really matters very little who is in management? — I think it
lafcters a good deal. I might explain we are constantly hearing of incivility.

You see the Commission has to report ; that is why they want to go into details
I the matter. — I quite understand the reason of the question. I would only eay I
ave frequently heard complaints of incivility and lack of attention, and these com-
laints, in my own opinion, do not apply to the regular Government officials to the
ime extent.

Mr. Kabe Rood was the next witness called. He said : Mr. Kan Rood's

evidenoe.

I want to give evidence with regard to the enormously high taxes levied by the sanitaiy Boaid
mitary Board of Johannesburg. I have only a short declaration to make. I have ****••
►t proofs to show that the charges come to about 20 per cent, of the revenue of
:ea property, which, of course, makes living in Johannesburg very expensive, and
nsequently affects the mining industry. I hand in a number of receipts which speak
r themselves. My place is bringing in a revenue of £4,000 a year, and taxation
mes to £800. That includes taxes m general.

Mr. de Beer,

Do you consider the water rates as taxes ? — I don't refer to the Sanitary Board Taction otuxed
me. I refer to all taxation on fixed property in Johannesburg. J2S»nn«bu*°

Do you also include stand licences ? — Yes, but that is a very small part of the
biole.

What are the stand licences per month ? — I think it is 10s. per month..

Do you consider the stand licences too high ? — No.

It is the only Government tax ? — Yea I gave £15,000 for my stands in the boom
D6B, and the Sanitary Board have a.ssessed them now at £16,000.

Why do you not work in the matter ? — If I were elected a member of the Sanitary
laid I certainly would work in the matter. I have an agent, and he told me he i^

294 Mr. F. W. Kock's Evidence.

not treated with ordinary courtesy when he goes to make objections. I consider the-
high taxation is one oi the reasons which make living so very expensive. I also
want to express my surprise that the people of Johannesburg always talk about other
taxes and never refer to these.

Chairrtian,

That is not really a matter that comes within the province of the Commission.
The authority of the Commission does not include a recommendation to mix them-
selves up in the local administration of Johannesburg. I always understood the
matter to be entirely in the hands of the people of Johannesburg, and it is for them
to look after their own interests. Unless the Government gives special instruc-
tions we cannot possibly go into this matter. We will go into the evidence and see
if any of it comes within our scope.

**deM«!** *^*' Frans W. Kock, chief of the Pass Department of Johannesburg, was then called.

He handei in a statement, of which the following is a translation : —

The pmb Law. I have the honour to state, with due respect, that I have read the different

declarations with attention, dealing with the Pass Law, being Law No. 31, 1897, as
given by the different witnesses before the hon. Commission. To make any remarks
^offtS? lAw**" to that portion which reflects on my defective administration, I consider unnecessary,
as comment would be superfluous ; but still, the evidence of Mr. C. S. Qoldmann
Pmb Law good on that point is worthy of consideration. That the Pass Law is an exceedingly good
ftmendment!^ law for the control and regulation of the native labour on the goldfields in this Stat^
must be acknowledged ; it requires, however, some modifications and improvement^
to make it better and more complete. And although most of the witnesses who were
before the Commission, wished strongly to impress this upon the Commission, I have
not yet learned that one of them has made a definite and practicable proposal how to
effect these improvements, and I will now try to give your Commission an idea of
what would be necessary for the proper administration of the Pass Law, and will thus
place my report under two heads, namely — (a) Administration and (b) Amendments
of the existing Pass Law.
^o?rm»uw**" (a). Administration. — I. According to a proclamation in the Stoats Courant, the

Witwatersrand goldfields were proclaimed in three divisions, namely — Johannesburg,
^'^SSSJSbu **' Krugersdorp, and Boksburg. First under Law No. 23, 1895, and, later, under Law
BokBburg, anti No. 81, 1896 (at prcscut in force). In each of which divisions the Government ap-
duSfeto' ^^ pointed a staff of officials.

II. Since the Pass Law Regulations were put into force, it appears that, in order
to ensure good and efficient administration of the Pass Law, it is necessary, and of
the greatest importance to the mining industry, that further appointments should b
Appointment of made Under the Pass Law, namely — (1) a chief administrator, or head of the depar
teator. ^"^^ ment over the three labour districts on the Witwatersrand goldfields, and ov
such other goldfields, public diggings, and private unproclaimed fields of this Sto
as the President, fi-om time to time, by virtue of Article 2, Law No. 31, 1896, n
Duties of chief proclaim. Such chief administrator shall stand under and be responsible to
administrator, jjinister of Miucs, and under such instructions and regulations bs the Ministe'
Mines shall draw up and submit to the Government for approval ; (2) a special
Appointment of commissioner for the Johannesburg labour area, where the circumstances are peer
commission^* and such othcr labour areas where circumstances demand it ; (3) a force of twen
Special police morc mouutcd poHcc, and as many for the other labour districts as may be f
STfordistricti necessary; (4) one chief warder, with six or more under- warders, for the Johanne
under Pass Jabour distrfct, and as many for the other districts as may be deemed necessary,
appointments are inter alia necessary.

Mr. F. W. Kock's ^Evidence. 295

(a). Chief administrator or head of the department, to conformably regulate the a chief adminit.
different Pass OflSces under his jurisdiction, so that the Pass Law may be administered id^uci '^'
in the same way wherever proclaimed ; for instance, it is administered in a different S^SJ^^°^
way in each of the present proclaimed areas, whereby the objects of the Pass Law der pms iaw
become frustrated and uselesa A head who would take an interest in the working °**"*^*
of the department, and who would have the time and opportunity at his disposal to
represent and lay before the Government the difficulties and requirements, in this
respect, of the mining industry.

(b), A Pass Commissioner, who shall have the same jurisdiction and powers as a a pws oommis-
Criminal Landdrost, and who shall stand in direct connection with the pass offices, so ^SSliailurii
as to expedite matters, to adjudicate upon all cases falling under the provisions of the diction neces
Pass Law. *^'

Attached to the pass offices must be a charge office, where natives who have special charge
transgressed the provisions of the law, especially arrested deserters, can be kept for ? ®°* SJ^Sj
about twelve hours, for identification by their employers, after which they could outPawLaw.
immediately be dealt with according to the law, or ordered back to their employers, as
circumstances may demand.

(c). For the assistance of the pass issuer, and the detection of deserters, a special stair o;
complete staff of police is necessary ; and ^r^^^canyS

(dj. For the proper control of the charge office, and assistance to the pass issuer, a SSar^wiid
a staff of warders, as firtx)ve specified. «" required.

The probable revenue from this office for the year 1897 will be £67,500, and about Eetimated rev
£15,000 in fines, while, if a staff, as suggested by me, were appointed, the expenditure oS!*.**' ^'**
would hardly be £15,000 per annum. ^'^^^^ *5

(b). Modification of the present Pass Law. — Since Law No. 31, 1897, was put into pass offlci
force it appears that certain regulations thereof are incomplete, and to make it more o^S&on!*
practicable further amendments are necessary, namely : '^SicMea^*"^

Art. 4. 2nd par., 4th line, to erase the words " without unreasonable delay," and x^^e^^*
insert therein, " within 4 days."

Art. 5 (a)., 7th line, to erase the words, "Irrespective whether the same be Article 6.
from within the Republic or from beyond the borders thereof," and to insert therein,
"obtained in accordance with Art. 4 of Law No. 22, 1895, or Art. 11 of these
regulations."

(6). To add a new sentence as follows : — " And the pass official shall destroy the
travelling pass immediately after registration."

Art. 7. To add, " contraventions of this article shall be punishable with a fine Article?.
of not less or higher than £3, or not more or less than three weeks' imprisonment with
or without hard labour, or lashes not to exceed 25."

Art 13. New par. to add the following, (a) " The pass issuer is empowered, in Article i8.
the event of registered natives going to work temporarily in another labour district,
to issue a certificate granting leave that natives may be moved to another labour
district on travelling passes ; provided that their employer made proper application to
the pass official, such certificate must mention the name and registered number of
each native, the time for which it is granted (not to extend, however, beyond two
months), what sort of work has to be executed, and the name of the employer. A
copy of this certificate must be sent to the pass officials, for information, in the other
district Such natives must be provided with (a) a monthly pass of the district in
which they are registered.

(6). When natives are transferred for good from the one labour area to another,
or wi^ to leave in accordance with Art 11 of these regulations, in order to work

296

Mr. F. W. Koclc*8 Evidence.

Article 14.

Article 10.
Article 18.

Article 18a.

Article 21.

Article 22.
Article 23.

Article 27.

Article 82.

Article S2a.

there, their monthly passes shall remain in force for the new labour district, to the
end of the current month, provided they are endorsed by the proper official. '

Art. 14 to read as follows : " Any native found in the labour district without
the district pass of form ' A ' and metal badge of that labour district, or without a
travelling pass or any contravener under Art. 9, shall be punishable on conviction
with a fine of not less or exceeding £5, or imprisonment for not less than six weeks
or more than two months, with or without hard labour, or lashes not exceeding 25.

New par. — Any native sent by his employer, or who, with the consent of his em-
ployer, wishes to go anywhere within the labour district wherein he is residing, must
be provided by his employer with a special permit, describing the circumstances of his
mission, the date of issue, and period for which the permit is gi'anted, but in no case
shall such a permit be granted for longer than three consecutive days.

Any native found in the labour district without this permit shall be punishable
in accordance with the punishment as laid down in the above-mentioned article.

Art. 16, 15th line, after the figure £5, to insert the word " or."

Art. 18 to be replaced by the following — *' Any native leaving one labour district
for another, not provided with the proper travelling pass of form * C,' shall, when
arrested, be immediately handed over for punishment to the authorities in the labour
district from where he came in the first instance ; and, in the event of having deserted,
after punishment to be sent back to his employer. Contraventions of this article shall
be punishable in accordance with the punishment as laid down in Art. 14 of these
regulations."

Art. 18a. It shall not be lawful for any native within a labour area to be a master
of natives. Punishment for transgression oi this article to be in accordance with the
punishment as laid down in Art. 14 of these regulations.

Second Art 18 to be altered to Art 19.

Art. 21. To add a new par. to Art. 21, as follows : — " Whenever a native is hired
by the week or month, either the native or employer shall be held to give one another
one week or one month's notice. In all other cases, if the engagement is for a longer

Seriod, one month's notice shall be required. In case of misbehaviour or dereliction of
uty on the part of the native, the master shall not be obliged to give this notice if he
wishes to discharge the native."

* Art. 22 (a), first line, to insert after the word "employer," the following;
" agent, mediator (bemiddeldarX or person."

Art. 23. To add a new par. — " The district passes of all deserted natives shall be
sent in, together with the returns of form ' E,' to the pass official, and a note shall be
made in the registers kept in the Pass Office of such desertions, and the district passes
destroyed."

Art 27, fifth line, to insert after the words " labour inspector," the following:—
" Clerks, police, warders, and other subordinate officials under the jurisdiction of the
pass issuer.

Art. 32. To add a new par.: — "The Sanitary Board shall not issue any
travelling (' togt ') or other licence to natives unless permission first be granted by
the pass issuer."

New Art 32a. All contraventions committed by natives, against which no pro-
vision for punishment is made in this law, shall be punishable by a fine not exceeding
£3, or imprisonment not exceeding three weeks, with or without hard labour or
lashes; and contraventions committed by whites shall be punishable in the same
manner, with the exception of lashes.

The whole object of the Pass Law is the eontrol and regulation of native labour
on the goldfields, and if the desertion of natives can be prevented, the miuing

Mr. F. W. Kock's Evidence. 297

industry would be fostered, and the object of the law attained. Should the above ^^^^^^'^
suggested proposals therefore be approved of and accepted, I have no doubt that fields and
this would to a large extent be the result, and with some further modifications the the'^BnmbUo
Pass Law might be made to operate throughout the entire Republic, so that this <>^*»*»»we.
•control and regulation will be exercised not only over the natives on the various
goldfields, but also over those going to and from them, and over all of those in the
Kepublic It is, of course, well known to me that large numbers of natives desert i>e8ertioiL
from the mines, and also that not many of them are again brought back to their
employers ; I do not, however, admit, as several of the witnesses stated before the ^"JlJj?®'*®'*
Commission, that no deserted natives have been arrested and returned to the mines.
Besides, it is by no means certain that natives deserting are not punished, as no native
can obtain a travelling pass, district pass, or badge, or be re-registered unless he has
complied with the one or other regulation of the Pass Law. It thus speaks for itself
that, perhaps with a few exceptions, deserting natives are punished. It has to be
acknowledged that when a native throws away his passes and badge, he cannot again ^^!"**?2J!**diffl'
easily be identified by any of the pass officials, and I challenge anyone to describe a cSl
native, and register him in such a way that he would be able to identify him without
the aid of his passes and badge, out of 60,000 other natives.

This is the case with every native registered, but should they still be in possession Means tor iden-
•of any of their passes or badge, identification becomes easy enough. Identification JSSSw. ^^
would, therefore, be easier by the officials of the different mines, and in order to meet
this I have suggested a charge office, with a large yard, where all natives arrested
could be kept for a certain time to ensure identification by their employers.

According to my opinion, the question is not so much the detection and apprehen- Means for pre-
sion of deserters, but the prevention of desertion. Prevention is always better than So^"* ^'^^
•cure, and this may be accomplished only by taking away the inducement to desert,
•which may be done in two ways : —

(1) By mine managers and other employers of natives ; that is, by acting strictly
in conformity with the provisions of the law by not engaging deserted natives and

those who have not fulfilled the requirements of the Pass Law, such as was and is the
'Case at the present day.

It is unreasonable to expect that the Pass Law can be carried out with proper
veffect if only a small portion of the public act up to it.

(2) By making the punishment for desertion so severe that no native will venture
to leave his employer illegally, and for this offence I have accordingly suggested a
j)unishment to meet the case.

Finally, I may state that I am the first Pass Issuer appointed under the Pass
Law, and the above remarks and suggestions have been maoe from facts gained by

•experience, and I believe I have had a better opportunity than anyone else to become
thoroughlv acquainted with the different requirements and discrepancies of the Law,

•and that I am therefore in a position to give a sound opinion on the matter ; being at

•all times willing to give any further information or explanation.

If these proposals were adopted it would be greatly in the interest of Administration
the mining industry. I thought the mines had approached the Government them- *' P»»Law.
selves regarding the faulty working of the Pass Law, and being under that impres-
ision I waited the outcome before carrying out my intention of approaching the
Oovemment personally on the matter. There was a meeting of mine managers called,
and before it was held some of the managers called on me for an expression of my
viewa I agreed, and they then asked for my views in writing. I complied, and the
•document.is. still in the hieuids of Mr. De Boos and Mr. Jobna The managers then

298 Mr F. W. Kock's Evidence.

asked me if I was willing to submit my statement to the Government if they agreed'
to the provisions, and I said I was quite prepared to go to Pretoria and explain the
matter to the head of the Mines Department. Nothing, however, came of that.
Subsequently I saw in the paper that the mines were taking up quite a different pro-
posal k> the one I had submitted, and that is the reason why 1 have delayed placing
the matter before the Government. I got no report from the managers what their-
opinion was, although the mine managers were going to petition the Uovemment. I
cannot quite see if the law were altered that it would interfere with the administra—
^©"ieMjjJ^oii tion of the three departments — Judicial, Minister of Mines, and Native — and my
suggestion is that the head of the Pass Department would still be under the Minister*
of Mines.

Mr. Joubert observed that if the law was altered as proposed it would create a-
new department of administration.

Witness said there would be another landdrost, and he would sit on these special
cases. Continuing, he said : What I want to see is one head regulating equally the-
work on these fields.

Mr. Hay.

The proposal re^rding the appointment of a special judicial officer practically
means another landdrost? — ^It would only be a special department for a special
judgment.

He would be dealing with the Native Department? — Yes. Government must
appoint a third or fourth landdrost whose work is to deal with the Pass Law.
ifMton^p of There is one clause, or a suggested new article, referring to the question that no-
native is to be a master of natives. Don't you think that in laying down a hard and
fast rule of that kind the law would work very awkwardly sometimes ? — ^There is a
correspondence pending on the point. I formally proposed to the Superintendent of
Natives, that if special free passes were asked for, the applicants should be registered
But a Volksraad resolution hia.s been taken, and it now happens that natives, except
in the case of missionaries, ask for free passes, and then they lure a lot of nativea
The Pass Law says every native must have a master, and that is the reason why I
make this proposal regarding native masters. As an alternative I have asked for &
limit to place on the number of kaffirs a native can hire.

Would it not be wiser to include in this law a provision that in the case of a
''native" man hiring natives that he has the authority of the head of the pass adminis-
tration.— It is a difficult question.

These pass regulations, as drawn up, apply particularly to kaffirs ? — Yes.

Okpe bovB and Then the difficulty arises with the people known as Cape boys and bastarda —
^>»"**^- That is the reason I made the proposals, in order to give the Government an oppoi^
tunity of drawing the line.

Don't you think it Ivould be better to separate the two classes of people
altogether — that is, make a distinction between the native who works on the mine
and what is known as a bastard ? — I think it would be difficult to draw the line.
You cannot make two laws, and the same law must apply to all natives, just as the
same law applies to all white&

But you have got the question of white people, you have ffot the mixed breed, ■
and you have got the pure Kaffir. Don't you think it would De better to make a
regulation to enable this middle class people to register, and give them a certificate for
a year ? — ^My recommendation to the Superintendent of Natives was that the line^

Mr. A. B. Pyffe's Evidence. 299

could be drawn between kaffirs and those who depended on themselves for a liveli-
hood, and that they should pay a diflferent tax.

Yes. As illustrating the difficulty, I will give you a case which happened to my-
.iBelf. I have a man in my employ and he is very dark, but his father is an English-
man, who is married to a woman who is descended from a St. Helena woman and a
white man. Out of nine children this man is the dark one ; all the others are white.
— Was the case before the court ? '

Yea — And thie Landdrost gave judgment ?

Yea I am not finding fault, as originally I made the man take out a pasa But
would it not simplify the law very much if these people were made to pay a separate
^^harge — a reasonable amount, and give them licences. — That is being dealt with at the
present moment

There are some of these amendments which, if I may suggest it, I should like to sugsrestioni for
hand to the mine managera I think if the amendments were put before the Mine KSST"
if anagers' Committee, asking them to send a reply in writing whether they approved
or disapproved of these alterations, that could be handed to Mr. Kock for his considera-
tion. 1 understand Mr. Kock to say in his report that the pass regulations taken as a
whole are good, and that the fault of the law not being properly administered is
mainly because of the pass office having been undermanned — The law is a good one,
4ilthough several articles require modification.

Replying to the Chairman, witness said the registration of kaffirs was good enough
^t the present moment. One of the objects of his suggestion regarding hiring natives
was that nobody should be able to hire kaffirs who were not in possession oi district
passes, and he hoped that would stop desertion to a great extent.

Mr. Alexander Buchan Fyffe was called, and being duly sworn in, said that he Mr. F^fle's evi-
wished to give evidence on the working man's wages on the Rand. He said: **•"***

Mr. Chairman and gentlemen, in the first place allow me to apologise for not being

present this morning when I was first called. I only knew yesterday that I had to

appear before the Commission this morning, and I was in the Orange Free State. I

«tnen left by the first possible train last night, and arrived here this morning. I have

to thank you, on behalf of the working men of the Rand, for allowing me to give in a

statement with regard to the working man's wages on the Rand. In the first place, I

wish to point out that the wages of white men generally, working on the Witwaters- white

rand goldfields, are none too high, considering the cost of living. That has been

dimply proved by those who have already appeared before the Commission —

by Mr. George Albu and Mr. Fitzpatrick. Let me say that the average wage of a

K»rpenter, the trade to which I belong, is £1 per day. On the average that

<comes to about £27 per month, and the expenses are made up in much

the f oUowing fashion : — Food comes to £6 per month at a mine boarding house. Some

•of the mines again charge 10s. per month for a room. Then you have to provide for

jrour wife and family, who are generally not provided with a house on the property on

which you work. That house rent in the district of Bjnigersdorp. costs at least £7 per

month. Then you have to provide food for your wife and family, and this costs about

£7 per month, and that leaves you with about £6 with which to buy clothing and

to educate your children, and to make provision for a rainy day, doctor's fees, and such

little odds and ends as clothing for yourself, and tobacco, and some little enjoyment.

Most of us now present on the Rand left our homes in Britain and America because of

the view put before us by the capitalists that wages were high on the Rand, and the

•cost of living not exorbitant We left our comfortable homes and the pleasures of life,

300 Mr. A. B. Fyffe's Evidence.

and we came out here in the hope of making a little money, and at some future date-
of going home to see our friends and the place of our childhood. Now, I hold that a
living wage is what a working married man can live on in peace and comfort. Accord-
ing to the evidence given you by Mr. Barrow, you will see that the working man,
unless he gets a house provided on the mine on which he works, cannot keep a wife
and family in this country out of the wage he at present receives, because, gentlemen,
the majority of men in this country are not carpenters but are miners, and their wages-
do not rise as high as £27, but who have, gentlemen, on aui average, £20 per month.
^Mid mine*offi- ^^^» ^^^» ^^ estimating the cost of white labour on thase fields, all divisions of white
dais' and di- labour, f rom the general manager downwards to the lowest working man on the mine,
rectors' have been thrown into one lump sum, and this has been taken as the average expenses

of white labour on these mines. No witness as yet examined has stated in detail how
these wages are paid. I would suggest that the Commission have a public auditor
appointed to enquire into the various items which figure as white labour on these
mines. Gentlemen, it is unfair to saddle the working man with the entire cost of
working these mines. I should suggest that a statement be got from the leading com-
panies giving in detail the following : — The London and Johannesburg directors' fees^
the London and Johannesburg secretaries' fees, then the consulting engineer's salary,
the general manager's salary, the mine secretary's salary, the total clerical stands-
salariea Put these down and get the cost per ton, and in another column get the cost
of the qualified working man's wages. In regard to the question of rent, I see that
Rente of minew some Companies adopt a very unjust line. Take the following instance: a company^
quarters. . Up 12 single mcu's rooms on their property. This costs at the outside £800.

They charge you on an average £1 per i-oom per month ; therefore they draw fromj
these 12 rooms the sum of £144 per annum, and the return on their outlay of £800 is.
about 16 per cent. Now, gentlemen, if the mine directors and the mine manager
grumble about the extortionate charges of the Netherlands Railway, they ought also, in
the first instance, to make their own house clean, so that if we have to pay rent for
rooms let it be a fair return on their outlay. Let me here state that all mines do not
charge for rooms ; some mines provide good married men's houses, and also good single
men's quarters, without charging anything for them from employeea Again, I wisW
to point out another item on which the Commission ought to get some informatioi^
from mine managers and directors. If I am rightly informed, the cost of dynamite i^
^ and**' iSf **to ^^^^ ^^ 5s. per casc. How does it come about that on certain mines they charge men.
contract work who are Working under contract from £5 10s. to as high as £6 per case. I saw. this
"*"' from the bill of a contractor on the Randfontein Estates for 25 cases of gelatina I

think, according to the statement of the manager of the Crown Reef, that gelatine coets^
£5 2s. 6d., while Mr. J. B. Robinson charges £6 for a case of gelatine. How dothej
charge so much more to contractors than the actual cost of the article. Take ano&er
item, perhaps small in its way, but still important, namely, fuse. That costs, at the
very outside, in Johannesburg, 5d. per coil. In Randfontein, contractors are cbar;^
6d. per coil. Now, Mr. Chairman and gentlemen, I wish to point out another thug:
which has a very important bearing on the wages of working men on these tsxdi^
tn on mines. In the first place, on many mines — I don't say on all mines, of course there ai^
exceptions — there is simply no provision made for enjoyment or pleasure of any kind,
for employees. A man is supposed to rise in the morning, take his breakfast and goto^
work ; work till dinner time, take his dinner, and go to work agfkin till tea time^ tfd
then there is nothing left for him to do but to go to his room — ^which, in some cases is*
hardly fit for a kaffir — to spend the rest of the evening. We have no enjoyment whit^
ever, and I hold that unless you can make the lives of the employees of the mineB*
happy and comfortable, the best men at present working in the country will find it-

Mr. A. B. Fyffe's Evidence. 301

does not pay to work here, and will go home to their own country, where they can

enjoy life, and have the pleasures and comforts of a home life. Another point I wish

to bring before the Commission is the question of dismissing men on short notice. Digmissai of

When a man comes to a mine and gets work, he is told first of all to go down to ™"**'^

the office and sign an agreement, whereby he gives or takes 24 hours* notice.

Now, gentlemen, this is not optional, because they don't compel you in the strict

sense of the word to sign this document ; you are compelled by the exigencies of the

case to do so. If you don't do so, you are not employed. Another thing which the

working men on the mines are much against is this compulsory signing of an

insurance coupon. The man when received on to a mine must agree to take a Miners' insur-

stipulated sum in the case of receiving an accident on that mine when in the *°***^

company's employ. The outside limit on the mines I have worked t>n is £300.

Now, gentlemen, I claim if a man, through the culpability of a manager or the

officials of a mine, in which he is working, sustains an injury whereby he is disabled

for life, he is entitled to a little more than £300. I would urge the Commission to

approach the Government with a view to introducing an amendment to those two

items in regard to employment on the mincR. I consider in this country we ought to

have an Employers' Liability Bill, framed on somewhat similar lines as the Employers'

Liability Bill in Great Britain, whereby an employee is not allowed to contract Employers' ua-

himself out of the benefits of the Employers' Liability Bill. At Home if a man **^"

sustains injury when in the employment of the company, although he has signed an

agreement that he will take a certain sum, he has the right to sue that company for

not providing sufficient means for safe working on that company's property. As I

said at the commencement, gentlemen, the living wage I laia down as an irrefutable

maxim, is what a maiTied man can exist upon. Now everyone agrees that unless

there is a home life in a country, that country has not the elements of success and

stability in it. la there any inducement in this country at the present moment for a

man to settle down and make it his home ? You want to make the conditions of life

here pleasant enough to induce married men to settle instead of coming here for a

few years and going back again. Some talk has been going on about the mines

dosing down in the event of no reduction being made in the Durdens resting on the

industry, namely, the cost of labour and dynamite. I wish to point out that if the

Government allow the mines to close down they are exposing themselves to a great Dangen of cioe-

and grave danger. If the mines are closed down a large number of men will be J^„^ ^

thrown out of work. These have not enough money to take them out of the country,

and they will be compelled to live in the country, although starving. Unrest will

ensae, and the consequences will be that the Government of this country will be in

danger. This is no fanciful picture, gentlemen, and I would like to point out that in

Australia, in the Victorian Colony, when the managers closed down the mines, and

threw a large number of men out of employment, the Government of the country

stepped in and gave them a fortnight's notice to open the mines, with the option of

having them confiscated. Now, I don't know that I nave much more to say, because I

have not been able to place before you the written statement which I had prepared,

and I have had to speak entirely from memory, and I hope the Commission will

erense my disjointed remarks. I shall be pleasea to give any further information. I

wonld again impress upon the Government the necessity for making the life in the

country such, that married men can settle down and become citizens of the country.

If you want to make this a healthy, happy, prosperous country, you have got to keep

op the standard rate of wage, and induce tne best men to come here, because in the

mkg run it will come to this — ^that good men will not come here, and the rag-tag and

own

302 Mr. A. B. Fyffe*s Evidence.

bobtail will ; and even the companies will be the losers by their policy. As the poet
Bums said :—

Go make a happy fireside clime for weans and wife
Is the true pathos and sublime of human life.

That is all I have to say, and I have only to thank the Commission for having so
patiently listened to my rambling remarks.

Mr. Smit

Have you been employed by one of the mines ? — Yes, on the Violet Consolidated,
Bjnigersdorp.

To whom did that mine belong ? — Mr. J. F. Henderson, I think, is the principal
shareholder.

What salary did you get there ? — £1 per day. We were paid monthly, but we
are liable to dismissal at 24 hours' notice.

Tou say that the average of white labour is calculated on the basis of lumping
together all the big salaries and the workmen's salaries, and then the average is
struck. I quite agree that the men getting the smaller wages must suffer ; can jroo
Mine oiBcuu'give an instance of any big salary paid to officials? — I cannot give information
'*^*^*** because I have not seen the books. The report is that the manager on the mine I
was working on received £2,000 per year, and one of the witnesses before the
Commission stated there were instances of mine managers receiving as high as £3,000
a year.

Tou say that the Government must adopt such means as to make it a good place
Din^miofmin- ^q i[yQ ^qj. married people ; what do you mean by that ? — ^I mean that the Gtovem-
ment should interfere in the instance I have mentioned. A man being dismissed at
24 hours' notice, where he is paid monthly, is putting the men in a wrong position,
because it places him at the mercy of the company, and I would ask the Commission,
and through them the Government, to make a regulation that if a man is paid
monthly he should get a month's notice. I may say that the kaffirs on these fields
receive a month's notice, and the white workmen on the Randfontein Estates, when
the reduction took place, only got three houi*s' notice. The Government can put the
white workmen on the same basis as the kaffirs, and give them at least a month's
notice.

You are entitled to a month's notice unless you make a special contract by which
you bind yourself voluntarily to accept 24 hours, and how can the Government step
in ? — If vou don't take work on these conditions, you won't get work at alL It m
impossible for a man to refuse, because if he does he is turned adrift There is no
union amount the men sufficiently strong yet to take up the case of the men.

Supposing the mine managers and the directors think that the wages must oooje
A good uving down, how could the Government meet you there ? — The only way to make it
^"'***' possible to live here is by giving the men a good living wage. Most of the witneasee,

including Mr. Albu and Mr. Johns, stated that the wages of white labour cannot be
reduced under present conditions. It is absurd for the companies to throw the whole
blame of the mines not paying at the door of the Government and at the door of the
white men's wagea There are mines on the Rand which will never pay even thoogh
the cost is reduced to 15s. per ton.

Supposing the Government improve the conditions, and the mining men will nfl*
oost of Uving of pay you good wages, how can the Government help you ? — Well, for one thing, they cm
rid«cibie*"by rcQuce the cost of living materially, and bring it down to the same level as in the
Government Cape Colony, where a man can live for at least £1 28. 6d. per week.

Mr. A. B. Fyffe*s Evidence. 303

The expenses of living cannot be the same here as in the Cape Colony, as, for
instance, grain has to be brought by transport 1,200 miles ? — What is to hinder this
-country producing all the grain it requires ?

Mr. Hugo.

Witness.] I came to Johannesburg in November, 1895. I was employed at the
Eandf ontein Mines, not directly but through a contractor.

There has been some a&dtation there recently in connection with the reduction of Reduction of

^ xr ® white wftgeson

wages f — Yea R a ndf ontein

You took a rather active part in it ? — Yes. ™^"^

What has been the result of the reduction ? — Well, the effect of the reduction has
been something like this : Mr. Robinson threatened to reduce wages of carpenters
from £1 to 16s. 8d. per day. The men refused to work, and the company has been
compelled to get the whole or at least the bulk of the carpentering work done by
contract. The contractor got most of the men who were formerly working on the
Randfontein Estates, and he gives them £1 2s. 6d. for nine hours, and Mr. J. B.
Robinson was only going to rive 16a 8d. for 10 houra

Are any of the men going back to the Randfontein Mines to work who left on
acconnt of the reduction of wages? — I left Randfontein on Saturday, and up to that
time no carpenters had gone back to work. A drill sharpener took work by contract,
.and instead of earning 18s. 4d. per day as proposed, he earned £1 7a 6d. That is the
itestimony of some of the men at present working by contract.

Have you any experience on other fields ?— No.

You think the life of white workmen in this country is not very favourable ? —

Is it not a fact that they are able to participate very liberally in subscription lists sweepstakes.
4Wid sweepstakes ? — I cannot say that they have gone in for sweepstakes ; I have not
been able to go in for sweepstakes myself. I was seven months on the Violet, and no
subscriptions were got up during that time. I worked till March, 1896, and then I
took typhoid fever. I was off for sixteen weeks, and that sickness cost me at least
£200 — over £100 in expensea I am also counting the money I would have received
liad I been working. It takes all my money to pay my current expensea

You appear U> make a strong point of the fact that companies invest £800 in ^'^rtew *"*'*^
btiilding rooms, and charge £1 per month ; is it not a fact that buildings of that ^^ "'
"description depreciate very considerably ? — I think the charge is exorbitant. If a
building is properly put up it lasts as long again as a mine.

Do I understand that the Robinson group charge contractors £6 for blasting coet of Reutine
;celatine ? — I saw the account of one man who came out on strike ; he was not affected workmen.'**^
by the reduction of workmen's wages, and he was charged for 25 cases of gelatine,
^150.

You say the price of gelatine delivered at the mine is £5 2a 6d. I think that is
•* mistake ; the charge is about £5 9s. 6d. ? — I might have made a mistake. They sell
^ contractors, and pay no licence for stores at alL

Mr. Hay.

In your statement, where you calculate how much miners receive, and then how Bents of minen

^uch they pay out, you made a statement there that they sometimes paid a rent of ^J^*****

lOa per month for a room ? — I made the statement that single men paid 10a on some

f^ipperties, and that married men, in the majority of cases, Cfiuinot get rooms oa the
^xiinAft

304 Mr. A. B. Fyffe's Evidence.

Subsequently you went into a calculation, and said that on some mines they"
charged unfairly. You calculated that a charge of £1 per room per month, on an
outlay of £800, would return 16 per cent. — Yes ; but you are forgetting the fact that
in single men's quarters on the mines there are always two occupants in a room, and
they have to pay 10s. each.

Do you think the charge for a room is universal on the mines ? — No, I don't say
so ; but there are mines that do.

Practically you don't know anything at all about it, except the mines you have
been on ? — I may say that on the mine I was on I was not charged.

Practically it is only what you have heard. You can only answer for some
mines ? — Yes ; but why should it be on some mines ?
Uniform rate on But you would uot exDcct pcoplc to be paid at the same rate on every mine ? Is

niinesforwhite ii . i f . ^ j^. ^ ^. ^ t_ ^i • j. f

wages. that what you are arguing, and, irrespective whether a man is competent or a mere

" botch," he should be paid at the same rate ? — I argue that the same rate should
obtain on the East Band as on the West Band.

Your argument is that every man who is a carpenter, wherever he lives — whether
at Modderfontein or Bandfontein — should get exactly the same rate always, competent
or not. — No, decidedly not If a man is incompetent he should be kicked off the pro-
perty, but I hold that a competent man deserves £1 per day.
White wages. The qucstiou is whether a mine can pay or not. It appears that a man must be

paid £1 per day. Now, if a mine cannot afford to pay £1 a day, what are the
managers to do ? — Well, they should approach the Government and try to get such
concessions as to make the mines not paying, pay. Speaking for myself and the rest
of the working men, if the cost of living be reduced they will be quite prepared to
take a good deal less than £1 per day.

You recommend, or warn the Government in a way, that the mines will be closed
down ? — Yes.

Supposing a mine does not pay to work then, what is to become of that mine
Is it to be closed down or go on ? — I hardly follow you.

Supposing there is a mine which does not pay to work — and you have said ther^
are mines on this Band which will never pay — then what do you propose to do ; ia
that mine to be closed down or go on ? — Well, if it is proved that nothing will make
that mine pay they must close it down. But there are plenty of mines which wera
paying which will be shut down, I suppose, if the white man's wages are not reduced
and concessions are not panted the industry by the Government. If the Government
does this these mines will be compelled to keep open.

What authority have you for making the statement that mines will be dosed

down if the concessions are not. granted by this Commission ? — If you judge from the

companies which have shut down which were paying, you can easily see that other

companies will follow suit.

cioBfag^ down of Will you name a company that has closed down which paid to work?— The

fontein.. North Baudfoutcin was paying, and it closed down for several months.

Why was it closed down ? — I don*t know what reason it had for closing down.
It had a good output, and it was closed for several months ; and Mr. J. B. Bobinaon
said that, if he did not get white labour reduced to the rate he wanted, he would close
down Forges Bandfontein, which is a paying mine.

Then you mean to say Mr. Bobinson made that statement ? — Yes. I mean to say
that Mr. Bobinson made a statement to the effect that if he could not get white labour
reduced, and other concessions, he would close down the Forges mine.

The North Bandfontein was re-started again ? — ^It stoocT about a fortnight dnrii^*
the lock-out ; now, I believe, it is at work again.

ces.

Mr. A. B. Fyffe's Evidence. 305

Therefore, as far as you know, the closing down of the mine may have been for
some very good reason ? — It may have been.

. Is it not a fact that the mine was closed down because the natives were drunk,
and that no native labour could be got ? — No ; I don't think so. I will give you an
instance. I was speaking to an official of Block A, which is presently to be closed
do¥m, and he told me that on that mine they never had any scarcity of boys, even
when the difficulty of getting native labour was at its worst ; and the common belief
is that Block A was closed down because therfe was no reef there.

That was inevitable if there was no reef there ? — No ; and I don't think capitalists
will float mines unless the reef is there, and then saddle the Government and the
working man with the blame if these mines are not paying.

You refer to the question of blasting gelatine. The price at the factory at Ooetof geutine
Modderfontein is £5 7s. 6d. per case, and it costs practically 2s. 6d. to bring it to
Johannesburg. That would bring it up to £5 10s., and to that there is the carriage
to Randfontein. — I can produce evidence in confirmation of what I have stated
regarding the price dynamite was sold at to a contractor.

You seem to complain because the companies insure men's lives against accident. Minere* insumn.
— It is a grievance to me that a man is compelled to insure, and if he is injured he gets
less than he would in a court of law.

If a man works on a property, and the injury he receives is the result of his own
carelessness, he has no claim on his employer. Is that a fact or not ? — Yes, that is a
faci

Not only here, but elsewhere, the same conditions exist ? — Not only here, but all
over the world.

If I employ a man to work for me, and he sustains an injury through his own
fault, am I liable for that or not ? — In a court of law you are not.

You say that £300 is the limit of compensation a company pays in the case of
total disablement ? — I am speaking from the agreement I signed myself. The agree-
ment on the mines here is that, if a man is killed, the company pays a year's wages,
with the limit of £500. That is, those who earn more than £500 are limited to £500.
That is the universal custom on these fields. On the mine on which I worked, if a
man were totally disabled he got a year's pay.

With the limit of £300 ?— I did not say the limit was £300.

Yes, you did. — I don't know whether he was alluding to the secretary or not.

It is a year's pay with the limit of £300 ? — Is there a working man in any branch
of trade getting more than £300 ?

Yes, there is. I am speaking from knowledge. I know that during last year we
have paid a lot in compensation. — ^Do you hold that £300 is sufficient for a man totally
disabled ?

Most of the accidents which occur are the men's fault. — I don't say that, because
at least nine-tenths of the accidents on these mines are the fault of the company, as
far as my experience goea

These things were talked over long before you came into this country, and the
conditions have been considered fair and equitable. — I don't think so. I know the case
of a man with a broken arm who has lost more than the company have paid him.

How much do you think a man ou^ht to get ? You ask the Government to step
in and help you. What sum do you think the Government ought to fix ? — I think it
would be presumptuous for me to fix a sum for the Government. It ought to be left
to a court of law to settle, and I am quite confident that the working man would get
more than he receives in compensation.

306 Mr. A. B. Fyffe's Evidence.

Do you think it would be best to give one, two, or ten years' wages ? — ^I don't
think I should express anything of the kind ; that ought to be left to a court of law.

The question is do you think that £300 is too small. What do you think would
be fair ? — I don't think it would be a fair question to ask at alL

When you say the amount is too small, the question is a fair one. — At home, if a
man is injured, he can go to the law courts. He can't contract out of the benefits of the
Employers' Liability BflL
Mineofflciais'Bai- You Say in the first part that you think many managers' salaries are too high.
You think a man with £2,000 a year is overpaid ? — In some cases I think he i& I
don't consider any man on these fields, whatever is his experience, is worth £3,000 a
year.

Still you think a man ought to get more in this country than in Europe ? — Yes.

In the same way you would get here £1 a day ; how much did you get in
Europe ? — When I was in Glasgow I was in receipt of £1 18a 6d. a week.

Then you get in this country three times as much as you got in Glasgow ? — ^You
have to bear in mind that a manager's salary is not only two or three thousand pounds;
he has, in many instances, a carriage and pair, servants, coal and light. All these per-
quisites count up to about £1,000 a year. A working man only gets his bare £6 a
week.

A man with a manager's appointment is supposed to be a man who has been well
trained ? — I have undergone a training also, and have have had as much training as
any man here. The fact remains that there has been no attempt to reduce these
officials' salaries ; it is always the working man. In Mr. J. B. Robinson's circular there
was nothing about reducing the consulting engineer's salary, or the manager's salary.

Chairman.

Jiineitf insur- What premiuu) have you to pay for insurance ; or do the mines pay it ? — On some
"*^" mines you pay it, and and on some mines you don't pay anything. 1 did not pay any-

thing on the Violet for insuring my life. If it had been optional I would not have in-
sured my life, but I was compelled to sign the agreements of 24 hours' notice and
insurance, or lose the prospect of work, which is none too plentiful at the present
time. On some mines I believe they do pay a small sum per month for insurance,
doctor's fees, and other things of that description.

Mr. Hay.
The insurance is not mixed up with the doctors' fees ; they are quite different

Chairman.

Your objection is that there is an obligation to sign these agreements ? — ^It is

practically compulsory, because, if he does not sign, he would not get a job on the minea

What premium have you to pay in the accident companies for £300 ? — ^I cannot

say as to this country at all. I was insured for £300 at home, and my premium was

£2 5s. a year. That was against accident

You object, because, having signed that agreement, you have no action against the

company ? — Yes, you have to accept a sum, in most cases, totally inadequate to the

injuries received.

Comparative Now, as regard wagcs. Here wages are £1 a day, in Scotland £1 18a 6d. per

oT^vinjc*^ week. Now, what is the comparison between the two countries in the matter of wages

^'^SeRand.** and the cost of living ? — Well, my board and lodging, mending, washing, and iromnff .

in Glasgow came to 13s. per week. That included a comfortable room, well fumishea»

•on

Mr. A. B. Fyffe's Evidence. 307

in addition. Washing and mending comes to a pretty sum here when they charge 4s.
per dozen articles. Plenty of men live in Glasgow and other parts of Scotland as low
as Ss. per week. Here in Johannesburg if you work, as I did, in town, they charge £6
and £7 per month for food ; £3 per month for your room. My washing bill came to
about 10s. per month on an average. Clothes cost three times as much as they do at
home, and the quality is very much lower ; and boots last about a third of the time
they do at home, and cost about twice as much.

So you a^ee with the mine managers that it is impossible to reduce white labour Reduction of
at present ?—^nder present conditions it is impossible. If the cost of living is ^^^^ ^"'■fi^-
reduced to a reasonable rate, there is no workman who would not be willing to
accept a good reduction in wages, and be prepared to accept 16s. per day if the cost of
living was proportionately reduced. We have no desire to keep up the £1 per day
for good, bad, and indifferent men, but so long as living continues as high as at
present, it is absolutely impossible for a workman to live in a decent manner under
£1 per day.

What is the object of your evidence ? — I may say that I was appointed by the
newly-formed Mineworkers' Union, which takes in all branches of employment on the
mines — miners, carpenters, blacksmiths, drill-sharpeners, handy men, and all others —
to represent before this Commission the fact that wages could not be reduced from
current rates unless li\nng was proportionately reduced. I am not representing
myself alone, and I have no desire to come here, as I am losing time. I was asked by
tins union to appear before you and give their views on these questions of wages and
cost of living.

You said we must try and get a statement from the different mine managers comparative
showing the salaries and wages paid from the highest to the lowest ? — Why should SS*°SiciiS^
not mine companies be compelled to properly audit their books to show exactly how Jjjjjj,** ^*
the money is spent.

The average given us of the percentage of cost of white labour ranges between
£23 and £28 per month. Now, if we were to get the wages of all, that average
would be reduced ? — Most decidedly it would be. A mine manager drawing £3,000
per annum would pay, and will pay, the salaries of a good many workmen. One of
the witnesses examined before the Commission would lead the public to believe that
the working men were getting the vast bulk of that percentage. I hold that a very
large proportion of it goes in salaries, of which there is no mention of reducing at all.
I don't mean to say that mine managers' salaries should be reduced, because, as a mine
manager said to me, " If my salary is reduced, yours will have to come down also."
What we want is a living wage for ourselves. That is what we are fighting for, and
we will allow the mine managers to look after themselves. I don't care if a mine
manager gets £3,000 a year, so long —

Do I understand that, with reference to the closing down of these mines of Mr. contract work
Robinson's, that after the work had been stopped through the proposal to reduce ftDdtime^-airc.
wages, the work was given out to contract ? — Yes, on Porges Bandfontein; where they
are putting up large workshops, and the work was practically begun, the foundations
having been laid, and it was intended to be completed bv the company. This has
been let out to a contractor who is employing a good few oi the men who were locked
oat, at the rate of 22a 6d. per day.

So you think that at the present moment the work will cost more than it would
have done at the original rate of wages ? — Of course it will cost more, as far as I can
see. The contractor will do the work quicker no doubt, but it will cost more than if
the wages had not been reduced below £1 per day.

308 Mr. A. B. Fyffe's Evidence

Mr. Smit

Minew insur- You Say you did not pay your accident insurance ? — I did not pay it on the
*"""• Violet.

Why are you against it ? — Because I am compelled to receive a lower sum than I
would receive if I put it before a Court of law.

The contract you sign there prevents your going to a Court in case of accident ? —
Yes.

It does not prevent further insurance of your life ? — Certainly not ; it does not
control your private actions.

Mr. Brakhan,

White wagreR. You stated that the wages of miners are inferior to those of carpenters, and you

give us a figure of £20 per month. Isn't it a fact that a competent miner earns £40,
£50, and even more per month ? — I don't know what the average wage is per month
for miners. I know that the wages on the Bandfontein Estates were reduced to
£4 10s. per week.

You speak of Bandfontein Estates. Why don't you speak of the Band generally.
I know for a fact, and it has been stated before the Commission, that the average
wage is considerably more than £20 per month ? — ^I quite agree that where a man is
working by contract he can earn more than £20 per month ; but the fact remains that
where a man is not working by contract, and I take it the majority of miners don't
work by contract, their wages are not above £20 per month.

Is it not a fact that most miners prefer to work by contract than by the day ? I
speak of mining in the mine, not surface work ? — There are some parts of work that
cannot be let out by contract. A stope cannot be let by contract, and the stoper
is paid 8s. 6d. per day.

I know one mine which does not work by contract, and the average pay of
miners last month was somewhat over £29. Some did better, some worse, on account
of working better ? — Yes ; you have got a number of these men who get big pay, who
sanday work on work on Saturdays and Sundays.
"^"**' Do you mean to say there is any work done on Sundays ? — Most certainly.

On the mine to which I refer there was no work on Sundays except in tiie
milling. Therefore, it shows clearly that a competent workman is able to earn a very
good wage on the Band, and that those who don't earn such good money are not soco
good men, and are not taken on by the contractora I don't say in all cases, but in a
Overtime. good many. — I have seen it stated in the papers that on one of the mines, contractonii
after the beginning of June, would not be allowed to make more than £26 per month.
I know plenty of mines where there are no contracts given out. If I were allowed
overtime I could make considerably more than £1 per day.

Experience is not in favour of overtime, as it is found that work is done duriM
overtime in three hours which takes four hours by day work ? — That is the fault ol
the foreman.

It is to be regretted that intelligent men have to be watched ? — If any of the
companies had men of the class referred to they ought to be put ofi the mines, as there
are plenty of men to do a fair day's work for a fair day's wage.
White wagee. The point is this : a competent miner is not confined to £20, his pay, in most

cases, averages much more. There may be some who only get £15 per month, but
companies would be much more ready to pay them £30 by contract if mod work is
done, than pay at a smaller rate and vet be to the good. There is no endeavour herfr
to cut down miners' wages if they do good work. It is not correct to say that till

Mr. A. B. Fyffe's Evidence. 309

wag^e of miners is £20 per month. — I hold it is not above f 20. It has not been
proved before this Commission or anywhere else. The average of any mine should
not be taken, you should take the average for the whole Band.

Some men are earning nearly £100 per month ? — Yes, I saw where the manager
•of the Simmer and Jack gave £140, but you must point out the opposite at Rand-
fontein. How many men at the Simmer and Jack get £140 per month?

There is one statement you made that capitaliste had told the workmen that high ^l^J^ in^^E^"'
wages were earned on the Band ; can you gave any names ? — That is a general state- land.
ment. What I mean is that there are men going round about at Home, I do not know
whether they are in the pay of capitalists or in the pay of steamship companies, or
whose pay they are in, but the fact remains that these men lecture at Home about
the big wages paid, indirectly inducing men to come out here without their having a
true knowledge of the state of affairs.

Can you substantiate the statement with regard to the capitalists ? — I say it lies
either with the capitalists of the mines or the capitalists of the steamship companies.

I want to elicit where capitalists who control the mines have been spreading these
reports with the consequences you name ? — I say that last year there was a letter sent
out by the Master Builders' Association enlarging on the rate of wages on the Band,
and contrasting the high rate of wages here with the low rate of wages, as they call
it, at Home. 1 take it you would call them capitalists because they are directly
responsible to the mining industry ; without the mining industry Johannesburg would
not last six month&

You do not accuse any of the mining houses spreading about such reports ? — No,
I cannot give you the names of any mining houses, but I know there are men going
About lecturing for this purpose, and they do not do it for love, and it follows that
men who pay them will reap the benefit of the men coming to this country.

Now about the short notice. Cannot the man just as well give 24 hours' notice DUmisMiofmin-
to leave as the company ? — Yes. Most decidedly. I think I said so in my statement.

So it is a hardship on the company also if a man gives 24 hours' notice. It cuts
lx>th waya — You won t find a man who will throw up a good job to take the chance
•of getting work in another place.

I know two years ago, carpenters have thrown up and left in 24 hours' noticci
T)eeau8e they could get 2s. 6d. more at another mine.— 1 know a man who got a job
^dh a mine not far from Krugersdorp, a married man, who took his wife and family to
tile district. He was only there three or four days, and he had all the expense of taking
liis belongings, and furniture out, and because he was at the mercy of the consulting
•engineer ne was thrown out.

Anyhow, it cuts both ways. In the case of the men the chance is the men are
^ot competent, and the company is justified in dismissing them ? — If they are going
to dismiss them, they ought to get a month's notice, as they pay them monthly. If
they are going to dismiss a man by the day they ought to pay him daily. I don't
Contend thev ought to be paid daily. In the case of clerks, secretaries, and amal-
.^amators, they get a month's notice and they are paid monthly. If a secretary is
^Oismissed at a cmy's notice, he claims a month's pay.

Chairman.

en.

I understand you have a written declaration, but, being called at short notice, you
^oald not farmg it with you ? — Yes, I had a statement written out, but owing to the
%d that I was in the IVee State yesterday, and I had to appear tcnlay, I was unable

310 Mr. Q. A. A. Middelberg's Evidence.

Where is it ? — In Krugersdoro. I can send it in.

I shall be glad to have it. — ^Then I shall only be too pleased to hand it in to the^
Commission.

Mr. o. A. A. Mid- Mr. G. A. A. MiDDELBERG, after being duly sworn, said :

delbenr's e%'i-

*"**' Before proceeding to answer the questions which will be put to me, I should like-

to have the opportunity of supplying certain information, in consequence of the^
interrogatory of witnesses which has already taken place. The most important point
NetheriandBof the accusatiou laid against the tariffs of the Netherlands Railway consists in the

in Th^o"ugh sharc of the carriage obtained by us in the traffic from the seaports to Johannesburg.

rates. rJ^^^ accusatiou that the tariffs from the ports to Johannesburg should be higher by

our taking a greater share of the profits, than they would be if we accepted a lower
share, is devoid of foundation. Let us commence with an illustration, which will
make the situation and position clear. When two individuals decide to build a hoose^
and provide the necessary funds therefor, and when the rental of that house has been
fixecf then it is certainly a matter of indifference to the tenants of the house what
share of the rent each of the two owners receives. This is exactly the same in the
case of the share of carriage received by each of the administrations in the traffic
with the ports. Let me now return to the history of the present existing tariflb. When
Hiatoiy of pre- the railway from the Cape ports to Johannesburg was completed, the Cape Qovem-

ratM. ^^^^ ment had obtained the right, by the so-called Sivewright Convention, to raise the^
tariffs entirely at their pleasure, only binding themselves to pay out a certain share bo
the N.Z.A.S.M. These tariffs exist at present, although since then reductions have
been introduced here and there. So far as I know, prior to six months ago, no object
tion was uttered against these rates, and the agitation which has arisen during the

gist few months has certainly surprised both you and me not a little. When the
elagoa Bay line was opened for traffic, we asked ourselves, as any railway manase^
ment would have done, what rates must be introduced on that line, so that that line
should have a share of the traffic in accordance with the forwarding capacity of the
Difference of ijne. The difference in rates from Delaffoa Bay with East London was fixed on aa
goft Bay and average of 15s. per ton. Again, somewhat later, the construction and opening of ft
&j8t^London jj^^ ^j^j^^ Natal was negotiated, and again the question was asked, what tariffi diftll
Tbrough r^waj \yQ rccogniscd ou that line, so that also that railway connection should obtain a pro-
line, portionate share in the traffic As you are aware, and as appeared later from experi*
ence, the rates from East London to Johannesburg have assured also to Durban a
sufficient share in the traffic. The rates from the ports to Johannesburg thus in th»
Shares of differ- way stood firm with the most sound railway principles. What share each of the
mi'^^iSo^i administrations should receive therefrom has nothing to do with these rates, Imt »
mtce are°in§e! ^® result of agreement ; or, if you will, of struggle between those different admiiufl*
pendent of the trations. When, therefore, a limit was placed thereon, by the Cape managemeDt
* taking measures to prejudice the railways from Delagoa Bay and NatiEil, by demaod-
ing from us a higher share of the rates, there was no mention of increase of tarifi^
but alone of the ceding of a greater share by the Cape administration to u& He
correspondence having reference to this is to be found in Green Book No. 1, 1895. R
is surprising that these so simple facts are not grasped in Johannesburg. This is Ite
more to be wondered at, because bjr a comparison of the 80-<^alled rates from Mid-Vael
River with those from Vereeniging, an elucidation of the fact could so easily be
arrived at. But this is still more surprising, for when some time back a dis-
agreement arose between the Free State and Cape administrations tcugaiduof
the share of rates which each should enjoy in the through traffic, and woeo w

amount
rate*.

Mr. Q, A. A. Mlddelberg's Evidence.

311

Cape administration threatened to extort a greater share for itself, no cry of

incugnation sprang up in Johannesburg that the tariflfs would be raised, because

they then fuUy understood that a higher share for the Cape administration was

equivalent with a lower share for the Free State. I do not here contend that the

rates from the ports to Johannesburg are high, or low, or just ; I merely wish to

demonstrate that the share which the S'.Z.A.S.M. has obtained has nothing to do with

the tariffs from the porta Certainly the N.Z.A.S.M. could have induced a tariff war,

instead of warding it off; but I consider myself fortunate that hitherto the tariff war

has been avoided. Many in Johannesburg would have rubbed their hands in esctasy

had the three competing railway lines to the ports commenced a tariff war in the

genuine American manner. It reauires no demonstration that this would have been

greatly to the detriment of the wnole of South Africa and its Govemmenta With

respect to this State, the important fact should not be forgotten that it receives 85

per cent, of those higher tariff shares, and of those greater receipts, and over and

above this, as a large shareholder, about another 5 per cent. In place of which it

might have been expected it would have been said, " Thou, good servant, thou hast, in

accordance with genuine commercial principles, assured thvself of the largest share of

the general revenue by which this State has been placea in a position to cover the

increasing expenditure," — a cry of indignation is uttered, which, taken at its least, is

unjust, rermit me now to subject the direct tariffs to a closer examination. In the

first place, people have distorted the shares of rates of the N.Z.A.S.M., and made them

to appear as tariffs ; and they have compared them with those in other countries of the

worla. It is astonishing that they have forgotten to make a comparison of the tariffs

from the ports to Johannesburg, with the tariffs from the ports to other places in

Soath Africa, namely, to stations of the Cape Colony, Free State, and Natal. Had

they done that, they would have arrived at the surprising result that not alone had

Johannesburg reason to pity itself, but all the other places, for instance, in the Free

State and Cape Colony. I attach hereto a statement of the tariffs per ton and per

mile in the Cape Colony, Free State, and Natal, and I find that, far from the rates

&om the seaports to Johannesburg being high, when compared with those to other

places, they may be called exceptionally bw.

Share of State in
Ketherlanda
Railway shares
of throuffh
rates.

Comparative
railway rates
from ports to
Johannesburg
andfromporto
to other SouUi
African places.

GOMPABISON OF THE TABIFFS PER TON AND PER MILE ON THE CaPE AND NaTAL OomparatiTe to-

-. -. Me of railway

Railways and from the ports to Johannesburg : — ntei per ton

Kr mile on
m and Na-

j™^ tal raUwayt,
and from ports
to Johannes-
burg.

Normal Goods. Medium Class.

Cape Railway (local traffic) —

60 miles^ delivery fee not included
100
200
For long distances, sach asPort Elizabeth, Johannesburg

n
n

6d.
5-40
4-90

2-80
2-40
2-20

1-71

(Roufrfa
Goods).

4*80

3-60
3-30

2-68

Actual rate to Johannesburg —

From Port Elizabeth, delivery fee included
„ East London
^ Cape Town
^ Dwban.
,, Delmgoa Bay

>»

2-70
2-76
2-56
8-79
4-24

2-41
2-48
217
3-84
8-64

1-75
1-77
1-67
2-43
2^52

312

Mr. H. A. A. Mldclellfer^r& E^^eiMe.

Kate from Port Elizabeth —

Kormal Goods.

• •

Uedinm OUm.

Ttadw*

To Bloemf ontein

8-90

1-78

2-60

„ Eroonstad

318

1-97

2-87

„ Viljoen's Drift

2-85

2-67

„ Kiraberley
„ Mochuli ...

4-01
3-63

•

1-82
1-97

2-72
2-36

Natal Railways (local traffic) —

■

25 miles

. ■ •

• •• O

5-20

oyj |. ... •*. ...

. . •

4-60

3-70

310

100 „ and more

. . •

•4

3-25

2-76

Netherlands South African Railway Company —
For all distances without terminals

4-60

Throitgh ndlway
rates to Rho-
desian mines.

State railway
principles un*
suitable for
South Africa.

Railway rate^or
coal on English
railways.

Thus for instance, where the 2nd class goods are forwarded from Port EHizabeth
to Johannesburg for 2'7d. per ton and per mile, the rate to Bloemfontein amounts to
38. 9d., to Kroonstad 3*18d., to Kimberley slightly over 4d. ; and we see that the
inhabitants at Viljoen's Drift have to pay almost the same rate for oversea goods as to
Johannesburg, certainly a proof that a share of the rates from the Vaal river to
Johannesburg has no effect thereon. But the differences come out strongly when we
compare the rate for timber to Johannesburg with that in the Cape Colony and the
Free State over similar distances. There we find that timber from Port Ellizabetli to
Johannesburg is rated at l'75i per ton per mile, to Bloemfontein 2'60d., Kroonstad
2-87d., Kimberley 2-72d. The same applies to the Natal line, though in a someiiduit
lesser degree. We now go a step further, and ask under what rates the mining industry
in Rhodesia will have to come for development. People have fixed all hopes on the
development of the mines in Rhodesia. Nowhere have I heard it asserted that these
mines are richer than those on the Rand. Well, now, the rate, from Port Elizabeth to
Mochuli in transit to Rhodesia amounts, for normal goods, 9'4d. per 100 Iba, agaiiiBt
81d. to Johannesburg, and the rate for timber 5'8d., against 5'3d. to Johannesbnig.
To this rate there must still be added the rate over the great distance from Moohiili to
the gold fielda Is it not marvellous how anyone can think of the possibility of ever
developing these fields, when it would appear, with the existing rates to Johannesbore,
already to be impossible. We see from the foregoing that, when anyone in South
Africa has to complain regarding the high railway rates, it can certainly not, in the
first instance, be Johannesburg, but nearly all the other places in the Free Staie,tlie
Cape Colony, and Natal which are deprived of the results of the privilege of lying
nearer the sea. And when the great wish, recently expressed, that' the endeavdun ot
all must be that all whites south of the Zambesi shall have equal rights is realised, tfaeo
important reductions in the matter of railway tariffs will have to 1^ introduced fof the
benefit of these other placea It is just because the principle of a State railway bo Uttb
suits the railways in South Africa, and the railways are rather managed on commerdal
principles, that this more satisf actoi^ result is obtained for Johaunesburg. If the tfXl^
State railway principles whereby privileges for one standard or class above another are'
excluded, were recognised here in. South Africa, then this edrtainly would notoomt'in
the interests cf of Johannesburg .tarifib. I now come to the second great grieviaiDce: the
coal rates in conjunction with the working costa What has not beeniltold
the coal tariff ? In the manifesto of Mr. Leonard, it was already
myself was mentioned as authority, that the profit from the coal xAtes ftxr ibb mimog

Mr. Q. A. A^ Middelberg's Evidence. 3i3

industry along the Rand would be sufficient to cover the expenditure over the entire
line to Delagoa Bay. This was repeated almost recently in the report of the Chamber
of Mines, and by Mr. Eckstein. Mr. Fitzpatrick, with a dexterously chosen example,
which is really an exception, has attempted to give an illustration in the case of the
Geldenhuis Deep, of the weighty burdens which rest on the mining industry through
the coal rates. Another went so far as to quote the tariffs for coal on certain English
railroads, and it was even said that because the Free State Railway charges the Cape
Railway ^. per ton per mile for the coal on behalf of the Cape Railways, this tanflF
<»uld be suitably introduced on the Rand. Why did they not go a step further,
knowing that the N.Z.A.S.M. does not charge anything for the coal for its own use on
its own line, no more than the Cape Railways for theirs, and declare that thereby the
proof was furnished that the coal for the mining industry could be forwarded for
nothing"? The basis for the compilation of all tariffs is the calculation of the working Basis of com-
•costs, as well as of the interest and further necessary and actual expenditure. There SSj'^wte/^n
exist two ways by which the working cost can be calculated. Let me, by an example, co^
make both these modes of calculation clear. Suppose a railway forwarded 100,000 ^cuiatinff ndi^
tons of goods per annum, and receives as carriage £1 for each ton, and let us allow ^^ working
that the cost of working, say thus : the costs for the maintenance of roads and build-
ings, the actual cost for motor power, the cost of stations and traffic persovneL
Further, the general expenses, the interest, and the writings-off amount to £100,000,
then the costs are covered, and it can be said that the actual cost for the forwarding
of one ton amounts to £1. Suppose now that that railway, which has there not
reached the limit of its forwarding capacity, gets an offer to forward 10,000 tons
more, and must do this at such a reduced price that it can make no profit, or, at least,
very little. To estimate the actual cost, which is necessary to forward these 10,000
tons, over and above the already existing 100,000, we go to work as follows : we say
the railroad is there, and is maintained. By the increased transport of 10,000 tons
the interest of a railway is not increased, any more than the cost of maintenance.
The personnel of the stations remain the same, whether one or more trains have to
pass through. The only thing that costs more is the personnel and the fuel of the
trains which have to travel more. Suppose now we arrive at a figure of 5s. per ton,
for which these extra 10,000 tons could be forwarded, then we find at the end of the
year an income of £102,500, as against an expenditure of £102,500. That railway has
thus remained in the same condition. Then, however, the forwarders of the first
100,000 tons say : " You can, and you admit that you can, forward 10,000 tons for
£2,500. How can you then ask us to pay £1 for each ton ? " And yet what a
difference in the account In the example thus far quoted the returns for 110,000
tons are £102,500. Should, however, the whole 110,000 be forwarded for 5s. per ton,
the returns would amount to £27,500, or, in other words, a loss be entailed of £75,000.
Here, in Africa, far too much is already forwarded for prices which do not cover the
•cost according to the first account. It is not long since the Commissioner of Railways
in the Cape Uolony assured me that the net cost of a ton of goods per mile on the Net cost of a ton
Gape Railways, bearing in mind all the cost and expenditure for maintenance, ^f^ Ke
amounted to between l^d. and 2d. I could not believe that then, but recently I have ospe imiiw^ys.
•convinced myself of it by the following calculation, which, as all the data were not at
my service, cannot lay claim to entire exactness, but ia certainly sufficient for our
purpose. I estimate the average revenue per ton of goods per mile on the
■Ome and Natal Railways I said, were those estimated average prices reduced to
rsd., how mneh would oe the loss sustained by the Cape and Natal Railways, and
-I focmd that the smaller income represented a larger sum than the whole net returns
-of the GSape and Natol railways, after the subtraction of the interest of the construe-

814 Mn Q. A. A. Middelberg's Evidence.

tion capital. From it appears that, by a general application of a tariff of l^^d. per ton
per mile, these railways would not be in a position to cover the interest and expenses.
For our railway, ampler data are at my disposal, and applying the same method to
onr returns, I come to the conclusion that the loss for the rs^lway, after the payment
of all remaining costs, amounts to over £150,000 ; l^d. per ton per mile is thus below

^Se SferiMdB ^^^ actual cost. It has been said that our working expenses must be exceptional^
Banway. low. The argument of the influence of low grades, so attractive for the lajnnan, is
always brought forward. Did our working costs amount to less than those of the
other railways in South Africa, then it certainly would be the only thing in the
Republic that is cheap. I have never heard it stated that we pay extravagantly high
salaries to the persouTiel, or that our personnel is too extensive, and yet I can assuis
you that the working costs amount to considerably more than on the other lines. In
this respect we are proceeding by degrees ; each year the working expenses become
less, but it will be long before we reach the figure of the other railways. It would
take me too far to sum up all the reasons for this, and point out the facts which place
these reasons beyond any doubt. Should the Commission be interested therein, I

B^jjy i*te« shall certainly give information later with regard to it. Now, it has not been my
toAi cost *° intention in the above to contend that it is unsound policy to fix tariffs lower than the
actual cost, by which all expenditure is taken into consideration. We are quite at
guilty as the other railways thereto. The cattle traffic, for instance, is done at a muck
lower rate than the so-called actual cost, and demonstrates clearly how far we can 00
with the lowering of the tariffs in South Africa. Where, for instance, a truck with
eight oxen is forwarded on our line at a rate of one or one and a half tons ordinary
normal ^oods, the Cape and Natal Railways forward this wagon as if it was only
loaded with one ton of gooda When we bear in mind that the average load of a
wagon is eight tons, then this cattle traffic, which certainly belongs to the most
difficult class of traffic, and to which delay can do so much mischief, takes place at
one-eighth of the tariff for ordinary goods. The forwarding of coal to the "ports takes
place on all South African lines at ^d. per ton per mile, more or less. These examrles
go to show how far we are already below the average actual cost of traffic With

BaUway rates on respcct to the rate of coal along the Rand, I shall certainly not contend that this

Mdaionsr the eai^not be lower. The returns are somewhat greater than the actual cost, but assuredly

not so much as people think. Let us closely examine the returns of the coal traffic

Here follows a list of the quantities of coal which have been forwarded on the so*

called south line, from Pretoria to Vereeniging, and Springs to Potchefstroom.

Tkble of ooal TABLE OF COAL — IN TONS — ^FORWABDED ON THE SoUTH LiNE AND RaND TRAX
tonm^tmiu- (INCLUSIVE) TRANSPORT FROM BRUGSPRUIT AND BALMORAL TO^ STATIONS

SITUATED PAST PRETORIA:

1896.

November ... ... ... ... 76,689 tona.

December ... ... ... ... 89,676

1897.

January ... ... ... ..♦ 81,898

February ... ... ... ... 76,528

March ... ... ... ... 90,735

April ... ... ... ... 88,847

February ooai In February the returns from the coal traffic amounted, including costs for sidiiifli

mIJS'^ re- *^^ platforms, all in all to £25,362 158., or an average of 68. 7d. per ton. In Mam

tumi. the returns amounted to £29^567 Ss. 6d., or an average of 6s. 6d. per (on. In April

Mr. Q. A. A. Middelberg's Evidence. 315

the returns amounted to £28,411 46., or an average of 6a 5d. per ton. This was the Apru oo«i re-
ooal required for aU purposes — mining industry, tiudes, and household use. The whole ^"^
revenue of this tramc, including the high cost for sidings so enlarged upon by Mr.
Fitzpatrick, amounted in February to £25,362 15a, or an averafi;e per ton of 6a 7d
In March the returns amounted to £29,569 3a 6d, or 6a 6a per ton. In April
£28,411 4a, or 6a 5d. per ton. Well, now, in these returns of less than £30,000 per
month, people seek for ^the covering of the expenses and the interest of the whole
capital of the railway. Were this coal forwaraed for nothing, then the loss in the
returns of the railway, and almost the profit of the mining industry, would amount to
£300,000 or £360,000. Should your Commission come to the conviction that the
needy mining industry could be practically assisted by a reduction of the coal tariffs. Reduction of
and if the opportunity were given us by a lengthened term of existence, then I do not S^SaHpoaSwe
believe that this would receive any preponderating objection from ua We could

C3mise, for instance, that for three years all mines which pay no dividend should
ve considerable restitution of the sum paid out by them for coal transport. This
manner of helping a poor industry was, inter alia, applied on the railways in Dutch
India during the crisis of the sugar industry ; and we thus avoid that to the rich even
more riches would be added. But, to proceed, we will now examine the actual profits
and surplus of our railway, and also those of the Cape Colony and Natal. With
regard to our railway, imagination has unfolded its wings, and as though we were on
tibe market, where people bid against each other, these profits have been mentioned as p^^^^ ^^ jj^^^,
fabulously high. People have spoken of If million, and I know not what besidea eriand* &»»•
Mr. Chairman, there is nothing of the kind ; these figures exist solely in the imagina- "^^
tion of accountants, who had no facts at their disposal. I attach hereto a list of the
actual surplus on our railway during the years 1895 and 1896 :

Table of Surplus — 1895 and 1896. '"^^^'Sf^

IBW. ,«^®^^ Burplui for

(Bough). lirt Md 1886.

£ t. d. £ B. d.

Surplus after payment of the ^aranteed interest,

redemption of loans, deposit in the Reserve

Fund for extensions, truck hire, extraordinary

losses, &c ... ... ... ... 379,209 0 4 890,000 0 0

Of which the shareholders and the company

receive... ... .,. ... ... 56,881 7 0 133,500 0 0

And the State as shareholder ... ... 14,282 10 0 36,000 0 0

The share of the surplus for the State (85 per

cent) amounts to .. .. ... 322,327 13 4 756,500 0 0

While in import duties was raised by the railway 137,337 2 3 242,200 0 0
So that after subtraction of the import dues, the

share of the State in the surplus amounts to. . . 184,990 11 1 514,300 0 0
Surplus of the Natal railwavs —

Percentage on the construction capital ... 4 10 11 9 0^

Surplus of the Cape railways —

Percentage on the construction capital ... 7 9 10 8 19 7

Surplus of the Netherlands South African Bail-
way Company —
After subtraction of the share of the State, in about

percentage on the construction capital ... 5 8 2 6 2 0

tion

The surplus in the year 1896, after pavment of the guaranteed interest, redemp- eriradi
ol loans, deposits in the reserve fund for extensions, wagon hire, extraordinary u»{sJl

Amount of Notb*

Bail-

•urphM

316 Mr. O. A. A; MiddeJberg's Evidence.

losses, etc., etc., amounts roundly to about £890,000, for the figures have not yet been
^^°df'^u' 8^^P^^*^^ ^y ^^^ Government Commissioner in the Netherlanda Of this the share-
^y°Burpiu8 of holders and the company receive £1,335,000, and the State, as shareholder, £36,000.
1896. rpj^g share of the surplus for the State amounts to £756,500, according to the

concession, while £242,200 was raised by the railway in import dues, so that, after
deducting the import dues, the share in the surplus for the State amounts to £514,300.
Well, then, Mr. Cfhairman, the whole surplus amounts thus to £514,300, plus £133,500..
This amount could thus be thrown into the lap of the poor mining industry. In how
far this is necessary, in how far the State will give up its income, is not for me to-
decide. I can only speak of the share which the company receives, and I for myself
can declare that, should the Government consider that we, by continuance, served to
work the line, and should the assurance be obtained, we would have no ol>jection to-
Proflte of Cape meet the wishes of the Government. I do not here need to repeat what surplus the
tSk3B.* Cape and Natal railways could deposit in the lap of the mining industry in the same

manner. This is a matter which does not lie in my path. I would only remark that
the profits made by the owners of the railways in the Cape Colony and Natal, are
considerably higher than those of our railway, and hence I come to the important fact
that the surplus, according to the percentage, make a greater share of the general
returns, and also of the returns of the goods traffic in particular. Should this appear
strange to you, and the desire be entertained to have rurther data, I shall be willingly
prepared to answer your questiona Before conchiding, I must return to a couple of
iwiwjy divi- general points. It has been declared that the railways must be satisfied with an
interest of 2^ to 3J per cent., even when the market rate of the money should be so
low. While this at the present moment amounts to 4 per cent., I can declare that
although I have seen many railways in my life which only paid out 2^ to 3 J per cent
dividend, I have never seen one that was satisfied therewith. On the contrary, I see
that even big railways in Europe, in the most populated countries, carry their
dissatisfaction so far that they pay out dividends which are considerably higher — even
aa high as those of the mining industry in Europe. It is also said that the mining
industry is an uncertain industry, and must therefore make bigger profita We must
consider, in this connection, what another witness has said here before your Com-
mission, that the railway and the mining industry are subject to the same
Uncertidiitar of rfsks. If the mining industry deteriorates, he says, the railway does also in a like
RiSiway' pro- degree. Well, now, if that is so, then the uncertainty of the mining industry is
**^ decidedly a reason for the railway industry to desire higher sums for profit, and for

the rapid redemption of the capital when it stands and falls with the industry which
is declared to be uncei'tain, and which, in the natural course of circumstances, will
one day come to an end. It has been said that our railway has the key of the situa*
tion in its handa I will admit this for a moment, and declare myself satisfied that
up to the present the possession of that key has been the reason for the prevention of
a tarifi" war to the detriment of this State, and of very brief benent to certain
Poaribie wduc- merchants and the mining industry. I repeat that when we are further placed in ft
nS§*'in ooZ positiou to work for the benefit of the State and the industry — and no attention is
ooyernmen^ givcn to the desirc of manv in Johannesburg to expropriate the line at any price^
AM ^^^^n^' "^^^^ ^^^* cannot be done lor other reasons — then certainly a way will be found to
ways. deal with the reduction of tarifls in conjunction with the Government and the parties

concerned. But this is certain, that the remaining railways in the other countries of
South Africa can never thereby be lost sight of. Which portion of the returns of th^
various railways in South Africa should be yielded "for the profit of the mining
industry, and perhaps also of other whites south of the Zambesi, now labouring nndtf
prejudicial conditions, can only b^ fi^^ in conjunction with the allied administraticiA;

Mk^.Qv a. JV- Midd'elbergr^s Evident. 317

and with an eye to the general welfare ; and not by the use, or rather misuse, of the

posaesaion of the key to the situation, il have now come to the conclusion, but I

must not omit to touch on a couple of minor points, which by declarations made

before you might .have brought about an entirely wrong impression. It has been

made to appear as if we are opposed to the construction of sidings, and as if it were constmction of

our fault that the coal is still always forwarded in bags. Nothing is more unjust •**"***•

than that. We have frequently insisted, and are still insisting, that the mines make

sidings, and when it is at all possible, we meet their wishes in' the matter. For several

years we. have eone to much trouble uot to forward coal in bag& For instance, we Traffic of ooai \n

always do it for our own service, and it has always been a puzzle to me how, on ^*^*

account of the not inconsiderable cost, the traffic in bags is not given up. I have

repeatedly asked thereanent, but have never got a definite answer, and now at this

moment it is pleasant for me to be able to say that one of the mines between Elands-

fontein and Johannesburg, even without having a sidiQg, will make a fair trial of the

traffic without bags. The other points are of too subordinate interest, but perhaps I

shall find opportunity to bring these forward during examination. I thank you,

Mr. Chairman, for having listened to this declaration, .and hope that you and the

members of the committee will give me opportunity to further elucidate any points,

principle, or meanings contained therein, which may not be clear to you. After the

foregoing was prepared, I received the tarifis on the Beira Railway. This railway Be ir* ndiwav

from Beira to Chimoio is the property of, and is worked by the same company which '****

has to develop the mining industry in Rhodesia. The length is about a third of that

from Delagoa Bay to Pretoria, and the rates are : — Machinery, corrugated iron,

cement, provisions, liquors, and general merchandise, 7& per 100 lbs. ; furniture,

millinery, beds, &c., from 7s. to 20& per 100 lbs. ; grain, 3s. 6d. per 100 lbs. ; horses,

inules^ cattle, £8 10s. each., Before declaring the tarifis of the N.Z.A^.M. the highest in

the world, a comparison with that railway in our immediate neighbourhood should

not be out of place.

Mr. de Beer.
According: to the estimate you made in your statement, it carries about a million EatimAted coai

X £ \ oTT traffic of Neth-

toDS of coal per annum ? — Yes. erianda lun-
This is at an average charge of 5s. 6d. per ton ? — Yes. A^wtamte per

Can you state to me Ihe percentage of pvoBt per ton ? — You cannot possibly take J? J therUnS!

one cla^ of goods individually in estitiiating profits. As I have . said, the real ex- Railway.

penses of one ton per mile is averaged on the entire traffic, and is l^d. per ton per ^^St^r ton

mile. The carrying df coal on the Band is certainly not the cheapest traffic we have ^eriln^^ii-

got. The cheapest traffic we have got' is across the Free State, where the train is '^^y-
taken over the boundarv without any shunting. The carrying of coal on the Rand is
und^r^ slightly more difficult circumstances.

The suggestion has been made to the Commission that the carriage price of coal suggested so iht
could be reduced 30 per cent. Can you tell me the actual cost of coal ? — I cannot say tfraof noiway
the distance it is carried. rate on ooai.

It is said to be 28 miles?-;— It. is wrong to say it is 28 miles, because at the Distance of coai
present moment 500 tons of coal are sent daily from Brugspruit and Balmoral. transport

..You cannot give us what the price per ton per mile is ? — No, I cannot do it. I
qan .b^ye it done; for a month to get the average, but it would take a lot of time to do
that • ..

' , , ypu. have made u^e of . the e^iureasion " tiie key <rf the situation." Who has got ^,iu!jJL*^i^!
^e,kc^ of tha situation ?— We have got it. • tion:

318 Mr. Q. A. A. Middelberg*s Evidence.

^ifa

It has been declared that way before the Commiflsion, and witnesses have farther
stated that if tarifis are lowered, that, as a natural consequence, the Colony and other
neighbouring States will have to follow suit, and if thev don't do it we could get Ofur
go(^ through Delagoa Bay ? — ^That is quite ri^ht Assuming that the tariff from
Delagoa Bay was lowered considerably. Natal will have to folfow suit, and the Cape
will put the question to itself as to whether its traffic will still pay, because the
difference between the freight to Johannesburg and the tariff in the Colony will be so
great that opposition will arise from the side of the inhabitants of Cape Colony,
unless the local tariffs are lowered, and the Government will see it is better to drop
the traffic.
^^oiTf ^^o m C*^ y^^ carry coal at 3s. 6d. per ton from Springs to Krugersdorp without loss ?
spripRB to — I must again point out to you the different ways of calculating. If one takes the
nigendorp. ^j^^^g^ ^ ^^^ Other traffic — ^maintenance, expenses, interest, amortisation of loans,
reserve fund, and so forth — and coal has to Dear its share of general expenses, it
could not be done, but you could carry coal cheaper if you only have to charge for
hauling power.

Mr. SchTnitz-DuTTumt

DWerentw imn- You havc said in your statement that the directors would have no objection to
S^end-pay- granting a restitution oi freight pay to mines which did not pay a dividend for three
^^i^^^o^' years ? — ^That is an idea I have thrown out, and I am quite prepared to abide by it if
the Government desire it.

You have not gone into details yet ? — I have worked it out in my mind. Of
course, if the idea were adopted, it might not become a permanent institution.

Aiid for those mines tnat pay very low dividends ? — We could make a sliding
scale from 10 per cent, up to 50 per cent. ; so that mines paying three per cent woola
get a reduction of ten per cent
Proportion of The real tailway surplus is £647,000 ? — Yea
^t^SveSn- What proportion would that be on the share capital of the company ? — Fifty

lands BaUway. p^p ^eut

Do you know any railway which makes a profit of 50 per cent. ? — You must bear
in mind there are very few railway companies where the share capital is so small
compared with the total amount expended. If the share capital were the whole cost
of building, the dividend would be nothing out of the way. »

There are debentures? — You put the question whether I don't consider the
surplus. If certain capitalists say we want good security for capital, with low
interest, that has nothing to do with the economical position of the railway. We
have always carried out the wishes of the Government, and also carried them out in
this instance.

You propose that the Government must lose about £500,000 ? — Excuse me, I do
not It IS a question of how much you can give, and return nothing. I don't SBJ
you must do it

If the Government gave £500,000 and the company £133,000, how would it be

possible and how would you bring about a reduction ? — We could reduce machineKj

to a lower rate on an average of two or three months taking the same quantity ot

Api>ortionment traffic as exists at present We should have to see how much less revenue we should

loJSf^^ui' ^t Say we give £200,000 out of the surplus we should have to distribute that sum

tioDof rauway jjj g^^|^ ^ manner that*. the mining industry gets a share and agriculture as well I

can give you every facility for getting an estimate.

30 p«r cent re- The mining industry wants rates lowered by SO per cent on foodstuffip, maehi*

Sif ?^"Si' nery, etc. ?— In one month the revenue of the entire goods' traffic is about £200,000

Mr. Q. A. A. Middelbersfs Evidence. 319

and a third of that would be £70,000. That would mean a loss of £840,000 to the g^K ew
railway, and that would be a bigger figure than could possibly be given according tive.
to the surplus of last year.

Mr. AUm.

Maj I ask you again what the gross receipts were in 1896 ? — ^There will probably
be a lot of questions asked me about figures of last year, but I must state tnat they
have not been fixed by the Railway Commissioner at Home, consequently I cannot be
exact. Within a few weeks, the whole statement will be published.

It is a pity that we cannot have the figures approximately to-day. — If you put a
question, I will give the figures as near as possible.

What were the actual receipts of the Netherlands Railway for 1896? — ^I willNetherUndt

S've the figures approximately, and I shall be open to correction, [On referring to SpStonSc!
B portfolio, Mr. Middelberg could not find his data, and said he had omitted to bring
the figure&]

Now, would it be correct to estimate the receipts at £2,970,000 for last year ? — ^I
cannot give you a reply with certainty, but the figures you name seem familiar to me,
and may be correct, but I am not certain.

I would like to know how you arrive at a surplus of £500,000, as, according to
my fissures here, we arrive at much higher ? — I don't know. The report will be very
shortty published, but I cannot give you detaila

It will be published before the Commission publishes its report ? — Yes.

When I was examined I mve figures, and I think they are pretty reliable, that workinf cottt
the actual receipts of the Netherlands Railway were £2,970,000, and the working SStS'y''*^
expenses £1,237,000. — 1 don't think that last figure is correct What is your source *^^
of information with regard to working expenses ?

I would rather not meiltion that. From these figures I said that, if the Govern-
ment were to expropriate the railway, and take last year's figures as a basis, and allow
6 per cent, on the debentures, and on the expropriation capital — We pay 4 per cent.

I say, if you allow 6 per cent., you get, in excess of actual receipts, £1,298,000. —
You must have made a mistake somewhere.

It is a pity we have not got the figures before ua Now, you have pointed oiit to
a member of the Commission that the capital of the Netherlands Company is in itself
but very small, but you have debentures which, to a great extent, cover the cost of the
laaterial and building the railway line. — ^Yes, to a great extent.

But you must not forget to point out that it is owing to the fact that the interest ®**i5Tl^TJ^
on those debenttires is guaranteed by the Government that you are able to have such BaUway' de
an enormous proportion of debentures on the share capital. I could float a gold mine **«°*'*'^
with a small capital if the expenses of machinery and equipment, and the development
of the mine, is guaranteed by the Government in the shape of interest on debentures.
The credit of this Government is so good that we would be quite satisfied if the Govern-
guaranteed our debentures at 4, 5, or 6 per cent. That's a difference. — ^That is so
manifest that it it is tmnecessary to argue it You see the position is this : you must
never for^t that, on account of the Government guarantee of the entire amount of
debenture interest, the Government also gets 85 per cent of the surplus; and theoorernmeBt
Government gets nearly six times as much as sharenoldera j^^£SSn^

What I wanted to point out is that the Netherlands Company claim a special p^^^
merit for having so small a share capital, and a larger debenture capital since the
Cbvemment of the Transvaal has guaranteed the debentures — ^I don't claim any merit

I want «Bnply to point out that, had these debentures not existed, your dividends
Would be Jiifimtesunalr}^ small, and the big profits over which we are shouting about

320 Mr. Qi A. A. Middelberg's Evideace.

would be nowhere. — ^I don't think you understood my reply to Mr. Dumont. He asked
me how much was the capital and dividend, and I said so much. There was no pride-
in it, and we take no special merit,
to ^ personnel May I ask you — I hope I am not indiscreet in putting the question — ^what do you
BuSway'^"^ cstimatc the bonus to the personnel to be ?— Two-nmths of £133,500.
B<ii^Vo mn- ^^ ^^. ^^ ^^^^' £18,500 ?— Two-ninths of £56,000.
nw of N^h^?. You think this time it will be about £35,000. Now, the capital of the Nether-

in"i^5^"''*^ lands Railway is £1,166,000. In the event of the Government expropriating the
railway, considering that the Government has got 400,000 shares, this will leave about.
£700,000 to pay dividends at 4 per cent., and interest on debenturea Of course we
must assume, in case of expropriation, that the shares would have to be expropriated,
at least at 150 per cent, premium. — I don't quite follow yoiL

I wish to show in case of expropriation very little more would be required in the
shape of premium on guaranteed interest than the personnel alone receives here. — ^If
you take it for granted that the bonus to the personnel is simply a present ; you see
even the mines give a bonus to their employees, which is a voluntarv action.

Quite so ; for services rendered. These services would have to be rendered in the
case of the railway, even in the event of the Government taking over the railwaya — ^
In some other way you would have to pay it, unless you go from the standpoint that
the wages are too high.

I would be induced to put that question because I do not know how much the
directors at Home get out of it ? — I can say a considerable portion of that is retained
for a pension fund.

We maintain that the rates charged by the Netherlands Kailway are too higL—

Do you speak about local tariff or the tariff from the ports ?

^wiSds ^lull. "^^ tariff on the Netherlands line portion. — Such a tariff does not exist. In my

wfty rates from declaration I hold such a separate tariff does not exist; it is only the portion of the

^^' whole traflSc charged from the poii: to Johannesburg that the N.Z.A.S.M. receives. I

maintain you have got very little to do with what the railway receives out of it ; yoo,

must go on the broad basis and deal with the tariff from the port to Johannesburg.

We must go on the basis that we must not take into account how much the
Netherlands get out of the traffic, or how much the Cape Colony gets, but we must be
satisfied to pay and look pleasant, and not mind who gets the pi*ofit. — No, you can
say that the whole of the tariff charged from the port to Johannesburg is too high,
but it is a mistake to say that that portion of the tariff is too high. It is simplj;
an arrangement between the two administrations.

I say that the whole tariff to Johannesburg is too higL — This discovery has been,
made within the last six months; it is a marvel that it had not been discovered withia
the four previous yeara I wrote a long letter six months ago, expressing my surpriac^
that the mining industry had not long ago objected to the high tariff levied from the.
port to Johannesburg.

Only for argument's sake I will put the question, is not the tariff from the port
to Johannesburg too high ? For instance, the tariff from Port Elizabeth to ViijoeaV
Drift is, for third-class goods, 2d. per mile per ton, but from the Drift to Johanneaboig
ThjMijrh »nd is 7d. — You forget to mention that in the through tariff there is a transit tariff aiidli^
ntes. ^*^ local tariff. The transit tariff is a fighting taiiff. The one you quote is the ixaxm^
tariff, and I will give you the local tariff to V iljoen's Drift The local tariff from Eaat
London to Vilioen's Drift is 6s. 6d. per 100 lbs., and from East London to Johasaeft^
burg is 4fS. lid. From Port Elizabeth the local tariff is 5s. 3d. to Johannesburg $iA
to Viljoen's Drift 7s. ,).d. It would look, according to your .argument, as u tli»
NJZ.A.S.M. paid 2s. towards carrying the goods.

Mr. O. A. A. Middelberg's Evtdeiliee. 821

I don't quite understand it. You charge 78. 7d. ? — No.

That is what we pay ; who gets it ? — The Netherlands get it from the Cape.

If you get it from the Cape, who pays the Cape ? — You pay 10s., and out of i^t
e Netherlands gets its share. The enarge on timber from rort Elizabeth to Johan*
sburg is 5s. 3d., and out of that we get 20d. May I say one word with regard to
at ? 20d. from Mid-Vaal to Johannesbusg looks extreme, but it is really a fighting
riff We get the lion's share, but you must not forget that the expense of hauling a
lin from Mid-Vaal River to Johannesburg is not higher than the expense in
hannesburg for the station, kazeme, and delivery. I dia not like to put it in my
claration, because I might have given the impression it was the tariff I wanted to
Fend. That is not the tariff, it is our share of the total tariff from the port to
hannesburg.

Who gets the lion's share ; I have got the statement of 1896, and it shows an '°<^"JJJJ' ^'®**J:
ormous income. I have also got a table of the Cape Government Railway, and it cape raii\*-ay8.
3ws an enormous income ; it is generally stated you are the stumbling block of the
lole of South Africa. — There is a lot of calumny scattered about it.

Is it not a fact that at a conference at Maritzburg you and Mr. Hunter, of the Railway confer-
ktal Railways, proposed that galvanised iron and flour should be removed from a SS?^* "^
ver to a higher class, and that the Cape Government, as represented bjr Mr. Elliott, ^"r?van*ued
posed it ? — No ; it was an indiscretion on the part of Sir James Sivewright to assert »«>" "><* fl®"'-
it, and he is plainly answered by Mr. Murray of Natal and Mr. Brounger of the
ee State. The question was raised casually at Pietermaritzburg whether it was not
ssible to do away with that special class, but they thought it better to ignore it, as
the goods in that class were put into a higher class it would make a bad impression.
le matter was not even mentioned in the minute.

There was no definite proposal made ? — No.

Then you absolutely denj^ that you have been the cause of the railway rates not NetherUnda
Ing reduced right through South Africa ? — Of course, I absolutely deny it. The Sjj^^vented
pe has never made a single proposal for the reduction of the tariff. It is only since g^^^^AfrioS.
8 Commission has been appointed that Sir James Sivewright, in an unofficial railway rates.
jiner moved for a commission to look into railway matters. I have not yet
leived an invitation to attend such a commission, nor has the Government.

In other words, there is a good deal of protestation and assumed fighting going
, but there is no earnest desire to see in what way the rates could be reduced ? — 3
tt't want to say that. Now that matters have taken this course, conferences will be Railway confer-

, , ^ -1 'J Ai_ !.• enc€« to be-

id to seriously consider the question. heia.

The mining industry is in this position. We find that under present circum-
jices it is impossible to work the majority of our mines at a profit We have got
ise burdens — high railway rates, dynamite, and minor legislative measures. We
pmoaehed the Netherlands Railway and the dynamite people to help us by lessening
see burdens. Our feeling is that where a surplus has oeen obtained during one
ar of over £1,000,000 in the railway department, a further £2,000,000 have been
tained from us in the Cape Colony, the dynamite people made a profit of £500,000
more out of us, it is natural we should think these are the spots which we can
Dch. Iliese various industries can help the big mining industry, which, after all,
pports everything. If the Netherlands Railway Company could not be expropriated
f the Government, then they would be quite right to mak:e as much as they could,
Bit the Government has the right to expropriate, and has not the Government the
llplit to dictate the tariff to you ? — I have never found that in the conicessioh. We ^liu^J^SJl.
iHe the right to fix the tariffs, and the State has the right of expropriation. ^^^^ ^^

1 have always thought if Uie mining industry and uie various other industries in S^ ^^

322 Mr. O. A. A. Middelber^'s Evidence.

this country could come more often together and discuss matters, we would be able
Original local settle this difficulty. In the first instance, you take the tariff four or five years a
erianda ^1^ wh^n you started your railway, it was framed on a very small traffic I — Are you c
^y- cussing local or otherwise ?

When I am speaking about five or six years ago it must be local ; but althov
the traffic has increased enormously you have not seen fit to reduce the tariffii to 1
20 per cent re- Same extent at all ? — You got a reduction in coaL You call it a small reduction
w'»toi'*on don't It was a reduction of at least 20 per cent

^^^- It was a small reduction, the traffic was very limited in the early days. In yi

supposition in your declaration about the carriage of coal, would it not
better to reduce the tariff to an average of 18s. 6a. Is it not a fact that }
PMribieinorease dictate this TTA to the Cape ? If the Cape were to reduce their rates would you i
aginrt^ Cape immediately raise your rates so that the Cape would not be a competitor of Delaf
Bay and Natal ? — ^1 do not know what I would do.
But you have done it ? — No.

Sir James Sivewright said in his speech the other day that whatever the O

reduced their rates by, the mining industry would not benefit by it ? — Sir James Si

Wright spoke as a prophet and not as a man who quotes facts.

AiiMred raiainir But havc you not done it before ? — No ; there is a Green Book for 1895 wh

against Cape coutains the wholc of the correspondence on the subject, and since that time there I

'•"^^ been no further correspondence on the subject

^ Mne*not to^bJ ^^^ y^^^ ^^^® ^^™ Komati Poort to Johannesburg in conjunction with \

uMd to reduce Dclagoa Bay line can act, if you so wish it, as a lever upon the Natal and Of

portratefc Qovemment lines. What prevents you from reducing these rates considerably

order to make the Cape reduce its rates ? — Because our policy is not to exeroai

leverage, but to act in conjunction with the railways of the Colony and the nei]

bouring States.

Your sentiments are to bring our goods as cheap as possible ? — Why not ?

Your actions have not proved it ? — Because our motives are higher.

Are these motives higher dividends ? — ^No, they are to keep pace with the n
ways in South Africa. You must not forget these tariffs have been fixed je
before by the Government, when nobody knew of the surplus, such as we had 1
year or this year.

Just so ; that brings me down to the question I put before. These tariffi w
fixed some years ago, when the extent of the gold mining industry in the Transv
was not certain, but for the last two or three years the traffic has increased en
mously, and so far we have not seen that you have paid any consideration to this i
reduced the rates? — Why should the railway company take the initiative? ^
always heard, until a short time ago, of the enormous profits of the mining induH
and the poorer mines have only been discovered quite recently. Why aid noli
initiative coine from the side of the industry ?

I can answer that by saying that the mining industry, or rather the leaden
the mining industry, had found out that the industry — and you must not take oub
two mines — was not as rich as we anticipated, and we have also become ooavine
that our working expenses, compared with those in other countries, are abnonml
high, owing to the concessions given by the Government — If the mining indnit
discovered that lately, how could you expect the railway company to have fc<

Part repreeenta- ^ OUu . ^ i , . -■ • i • ttt i_ j i_ i^

tione of min- It IS not lately that we have discovered it We have urged upon the QOWB
J^innt NetK ment, the dynamite people, and the railway, the necessity of reducing tariflk— Wh
wit^t-J'**^' there was a question about the reduction in coal tarift — a reduction which I eodtit

way ratefb

Mr. Q. A. A. Mtddelberg's Evidence. 328

important — ^was made, do not forget that the reduction in the ooal tariff was the seduotioa of
remit of a conference at which the member for the First Baad for Johannesburg was oaool^iiiUM!
present, and the coal mining industry was represented, and they were quite satisfied.

When did this reduction in the coal tariff take place ? — 1st July, 1896, and it was
temporary at the request of the industry.

Since then you have opened your Charlestown and Delagoa Bay lines ; of course openinv of
first we had to see how these lines would work, but when they had a large margin of Md^'DSSSoa
profit we expected you would reduce your rates. — We do not go on the question of ^y >*»•*
sentiment, but on business.

I have no sentiment in the matter. As I have told you, if the Netherlands Bail- NetherUnds
Company were a private company with a concession, they would be perfectly right to obi^nniSt
make as much protit as possible, but the industry looks to the Government for protection, '^*g[«P«>-
and if the Bailway Company is stubborn, and says we won't reduce the rates, then we are
perfectly J ustifiea in requesting the Government to nationalise the railway, in order that
we ^oula get cheaper ratea — I don't dispute your ric^ht to ask it.

I am not bringing sentiment into the question. I simply appeal to the Govern-
ment, and say that the Netherlands Company are making this enormous profit, and
won't reduce their rates ; and the mining industry finds this burden too heavy. There
have been manv deep levels which have stopped work for want of funds, and from the
fact that capitalists say they will not put another 6d. until the conditions on the fields
are such as to make our work profitable, we do not want to work for the railway or
the dynamite people. It is a matter of dire necessity that something must be done. Necewity of r«-
The mining industry has to do its portion, and everybody else has to do their portion. i**"^^Sj"*
I am surprised in your very able statement to find you draw a comparison between
the Beira Bailway and the Netherlands Bailway in the matter of tariffs. Do you not
think this railway will reduce its rates 50 and 75 per cent when the trafiic justifies it ?
— ^I do not indulge in prophecies.

I will make a bet they will reduce them 60 per cent.

Witness said that when an industry was in its infancy, imposing killing tariflb
was not the way to foster the industiy.

It is a matter of opinion, Mr. Middleberg. If I had the administration of this
eountry, I would run cheap railways to develop the country. It might be useful to comparative
show vou a few comparisons between actual rates in the Transvaal and the [maximum Hf "^^guu^d

in Holland, also in England. From Vereeniging to Johannesburg we know it is ^juttTAfriSJ*^
tH miles, from Volksrust it is 178 miles, and from E^maati Poort 341 miles. In the " ^'
Tranavaal, for mining machinery, it costs from the port 104s. to bring to Johannes-
Imrnr ; in Holland the maximum rate over the same distance, and on the same kind of
i, the cost is lis. 3d. In England it is 31a 8d. On iron and steel in South

^ ica it is 72a 2d. ; in Holland lis , thus showing the great discrepancv between the

p. Bailway rates in England, Holland, and South Amca. — If you will only go one step
foriher, and apply the tariff of Holland and England to our tariff, not only wm
:^ flarplua interest disappear, but the State would have to pay a large sum into the
nalway.

I am only showing you the difference. I don't say it can be done. — What leads
foa to your conclusion ?

I wiU give you the results of the earnings of certain railways. The revenue of Bevenuepermiie
the TranavMl is £4,775 per mile. — I cannot contradict it, because I have not the Budi^?^"*'

I am checking these figures by Mr. Qregson's book. — As regards the railway, that
Mk has incorrect figures as a rule, and has to be taken with the greatest care. If
fou tAke our report you can depend upon it

324 Mr. Q. A. A. Middelbers:*s Evidendb.

»^y "j;*"^* The revenue per mUe in the Transvaal is £4,775 ; in Natal, £2,825 ; in the CJape,
Ratal, the £1,810; in India, £685; and in the United Kingdom, £3,844. — Everything is very
■^l!St{ieUnit^ cheap in Holland, and the circumstances are altogether different.
Kingdom. We must make an allowaucc for these things. I want to show you the enor-

mously high rate charged here. Do you think it is necessary for the Commission to
:suroiu« of profit poiut that out to you — that your rates are very high ? — I don't want to show theper-
BwitSjTalllS^ centage. I want to show the surplus of profit, and that is the only sum which can be
able 'o' ««i"c: taken into account in a reduction of tarins.

t^ono rayn-a3 y^^ ^^ ^j^^ Govemmeut gets 85 per cent, of the profits. — ^The Government and

the Company together get a certain amount of surplus, and that is the basis on which
you must go if you want to reduce the tariff.

That is quite so. But the Government get 85 per cent. You say the railway
company shows a comparatively small income. — I refer to the amount of surplus that
is available for the reduction of rates.
^^nTrntfoVof ^^^ ^^ ^^^ Government expropriate the railway ? — They would have the same

railway. SUrpluS aS UOW.

Supposing the Government expropriate the railway, and paid you out ? — ^Then the
Government, unless wages are reauced, and they find material cheaper, cannot earn
more than we are earning.

If the Government were to expropriate and issue debentures at 6 per cent, this
would mean £435,000 interest on the working expenses for 1896, which were
£1,237,000.— That is not correct

In 1895, the total expense on the revenue was 43 per cent.; in 1894 it was 48 per

iperceiitofce of ccut. Is that corrcct ? — I dou't know for 1894, but for 1895 it is correct

to re\"e^iuTS Very well, then, your revenue has increased, but your expenditure does not increase

Ne tji^eriujida Jq proportiou, so we can take 40 per cent. — Prom the figures here, I cannot say tlM

i894^and im, exact amount of working expenses ; but you have got the sum of £890,000 as 8urphi&

You see, it is somewhat di£Scult for me, as you have one set of figures and I have
another. I base my figures on the expropriation of the railway by seeing how much
the profit would be for last year. You have not got your figures, which is an mh
Collection of CU8- fortunatc thing. With regard to the collection of customs at Delagoa Bay; does tiiis
•XrSpoort.'^^"*" amount go into the railway revenue ? I understand that, according to the concessioii,
you have got the right to charge 5 per cent, commission for collecting, and that the
whole amount you collect goes as income to the railway ? — ^Yea

Eighty-five per cent, goes to the Government You take out your reserve fond,
€md you pay your shareholders a proportionate profit. It is not in the concession, ot
arrangement with the Government, that you should collect customs dues at Eomati,
and then charge 5 per cent, for collection fees. You simply take this as Tail¥raj
revenue ? — I will read you the article in the concession.

Yes, please. — ^This is the portion of article 17 : '' Import, export, and transit dvtiei
on the Portumiese boundary, due for all goods transported by railway, including eotl,
are coUectedby and on behalf of the concessionaire, according to rules and regolatifliV
to be fixed in conjunction with the Railway Commissioner, or on instructions bm
the Government"

What instructions were given ? — ^They are exactly the same instructions as an
given to other collectors of customs at Eomati Poort
Revenue of Ne- You havc an iucomc of £20,000 per month from this source alone ? — ^The first con*
luuXiv'^f^^m cession was exactly the same as that between the Cape Colony and the IVee State
^tSnS!^ ^' The original concession between the Netherlands and the Government was that of ib^
net profits, 50 per cent, having to go to the Government, and 50 per cent to the oov
pany. When, in 1886, it l^came necessary, for financial reasons, to hAv% beMa

Mr. Q. A. A. M!ddelberg*s Evidence. 325

eeeurity than the Netherlands guaranteed the State, which at that time was not rich, ^^^^ <>' <»°-
that the interest should be increased from 50 per cent, to 85 per cent At that time therUncteRau^
the collecting of import duty cost about 10 per cent. JSto^"^

You say that you know the cost per ton per mile on the Cape Railway is 1 Jd or ^°'^J5J"p**'J
2A May I ask you when that was ? — You will find it in the Cape Blue Book for 1892. tonpermiiion
It was in consequence of the tariff charged by the Cape Colony Government on rails ^^'•P«'»*^*'*y»-
and aleepera I wanted l^d. per ton, and the Commissioner told me the cost was l'07d.
Afterwards there was a Parliamentary Committee, and the cost was based by the Com-
mittee as lOTd. as the net cost.

It would have been cheaper to-day. — I have made the statement, and the cost in
Cape Colony is not far from l^d.

Do you make concessions with regard to your railway tariffs to merchants here in privileges for
the shape of bonuses ? — No ; at the last conference in Pietermaritzburg we agreed that i*rge oomign-
none of the railway companies should give any privileges for large consi^ments. "**"
The Cape Colony did for the transport of coal up to a short time ago, but it is now
abolished. There is no privilege of any kind on our company.

You did not give Lingham privileges, for instance ? — In the year 1894 we made a The "Lingham"
contract with Lingham, and I have often explained the circumstsuicea We were then contract.
about opening the Delagoa Bay line without knowing the attitude of the other rail-
ways, and without knowing whether we should get any traffic. Then we assisted
Mr. Lingham in the transport of really very large wood consignments for Delagoa
Bay. We attained our object, and in March, 1896, that contract lapsed.

Since then he has paid the same rate as anybody else? — ^There was a lot of The "Daviee"
jHPivilege to Davies, whose wood the railway companies agreed to take at 40 lbs. the p'*^®^-
cable feet instead of 52 lbs. Since then it has been increased to the usual rate. With
T^ard to the Lingham contract, it has been said that the Netherlands Company have
paid £60,000 to make the contract null and void. There is not a word of truth in
that statement The bonus got by Mr. Lingham according to contract did not by any
means reach that figure, and no sum has been paid in order to cancel the contract.
We, in conjunction with the English firm, have found a re-arrangement which has
satisfied both parties.

Is it true that the Netherlands Company forces the Cape to keep up transit dues xransH dues on
•on certain articles ? — No ; I would not know how to do it. In the Green Book you Capemiways.
will find an interchange of telegrams at the beginning of 1894. During negotiations,
transit duties were lowered by the Minister of Finance without any communication
being made to me, upon which I asked information by tele^aph whether such was
tme. But he must have made a mistake if he was under the impression that I should
make any observation on the subject, and so far we have never used any pressure^

You cannot tell us what was the approximate profit on your coal traffic ? — I have pront on ooai
.stated to Mr. de Beer that I cannot give the exact revenue per ton per mile. *'**^-

Is there any objection to the coal companies having their own trucks ? — Under special raUway
-certain cases you mi^t have special wagons, if these are used between two fixed ^^^^
pointa I know in England it is not customary to allow special wagons unless
i Detween fixed points.

Chairmcm.

Must I understand, if we agree with the company to make a reduction in the Reduction o f
"boating tariff, that it would not be desirable to make such reductions until you have '*"'***^ ^^^
^ had a conference with the other States and Colonies ? — ^If the Government should ^iTIi^^Boci^
I inA that we should break the limicable relations with the other States, I certainly ^Jj^ibSsto
[ irobld not take up polities myself.

826 Mr. Q. A. A. Middelberg's Evidence.

I think it desirable that a conference should be held on that point. — ^That is my
personal conviction.

Mr. Brakhan.

So far, the argument seems to me to be confined to the profit which the Nether^

lands Railway have been able to make out of the rates ruling from the traffic to the

coast. Now, what I want to brin^ forward is this — that not alone the Netherlands

Beduotion of Railway Company, but also the amoining railways have to cut down their rates, and

of"^ 8^^ that, therefore, the benefit would, directly or indirectly, come to the mining industry.

Atttaui iiHCB jn connection with this, I would ask you whether, in case the Netherlands Company

were to reduce their rates on the Delagoa line, whether in that case the other railway

The Netherlands Companies, to maintain the traffic, would also not be compelled to reduce their rates ?

SSS5'«dr. -Certainly.

^on «'gj^^ Therefore, if the Netherlands Railway Company were to call a conference of the
African Unee. railways in South Africa, and would insist on the rates being reduced, then the Natal
and the Cape, which principallv come into consideration, would also follow suit. I
want to brine this out, and particularly to lay stress on it, that it is not alone the coal
rates in which a reduction would benefit the mining industry, but principally the
Reduction of coast ratcs, because, if we don't have a reduction in rates from the coaist, it seems to
Sr*im£efrOTx ^® almost excluded that any amelioration in the cost of living, not alone in Johannes-
ports necesB- burg, but in the whole of the Transvaal, would follow. As I have already said, an
^' all round reduction on these coast rates, the amount which will be saved directly by

the mining industry, and indirectly again by cheaper living, would accrue through the
reduction in the revenue of the adjoining railways. Now, if you will allow me to
point out the Cape never asked you to get a reduction, may I ask if the Netherlands
asked the Cape or Natal for a reduction ? — No ; I gave a reason for that just now.
There was no reason for it.

I express the opinion generally held, and, if I may be allowed to, give my per-
sonal opinion. Of course we know that in the coal rates some reductions have beooi
made, but not on the coast rates, which is after all the material thing. Tou referred

**FSfrhtlmri
Arom vU
Drift to

nesbniv. Capetown, where a difference in Port Elizabeth and East London rates had been
maae, and to be secured of a certain guarantee of traffic, for the Delaijoa line we
wished to have a larg^e difference. The Cape Administration wished the difference to
be a very small one, in order to retain the bulk of the traffic from the Cape ports.
Then I carried, against the wish of the Cape Administration, that the difference of tho
freight by Delagoa Bay should be about 15s. per ton, whereas the Cape wished for a
much greater sum. If we were to place merit, then we might claim we are the people
who made Delagoa Bay rates as light as they are. The Cape Adminbtration thea
threatened to lower the tariff to such an extent, to come so low that under any cir-
cumstances they would have secured half of the traffic ; the moment had arrived for
us to take up our defence, and what the Cape had never thought, that one of the
points of defence would be, and what would compel our share of the traffic frcHD
Viljoen's Drift, we established these fighting rates. Don't forget one point that you
should not lose at all. The time when these tariffs were in existence there was do
reason for creating opposition for us, and we then made them so that Delagoa Baj

inorawed traffic ^hould sccurc for Delagoa Bay a fair share of the traffic.

and reduction That may be so, but at the same time the general trade of the Transvaal
n[tc«[^^*^^^ very much smaller than at the present time. Therefore, when the rates were qqito

ates
ports to
Free
Stated

Mr. Q. A. A. Middelberg's Evidence. 327

called for at that time, there is quite room for a material reduction which would yet
leave the company such a profit on its capital, and a share of the profit to the Qovem-
ment, which would be about on a par with the railway results at that time, say 2^
years ago. — I have put that in my declaration very plainly.

^ I^ly wanted to bring outVgain that thereVcertaLly room for bringing the
rates down to a lower level, — Yes.

Then you brought some examples as regards timber. You mentioned that the *^JJ^ ',
rate from Cape ports to Yiljoen's Drift, for consumption in the Orange Free State, as omige '
hi^er than those rates paid on the timber traffic to Johannesburg. Now, don't you
think that this is quite justified, or more than justified, in so far that the timber traffic
from the coast to tfohannesburg is infinitely larger than that up to Yiljoen's Drift. —
That also explains the carriage to Kimberley.

I take it the Kimberley people themselves will look after this, also that the KUnberiey rail-
demands in this respect are not to be compared to Johannesburg. — ^Don't you forget ^^ **
that there is a great deal of wood used for the mines in Kimberley. Still, for Sie
building of houses, why should people in Bloemfontein pay a higher rate than those
in Kimberley ?

Then people in Bloemfontein must bring pressure to bear on their Government,
and the people in Cape Colony too. The argument hardly holds good in our case.
It is a fact tnat the Kand here is an enormous customer of the railways in South
Africa, and on that account they are entitled to consideration. Now, Mr. Middleberg, isoe-isorretunu
yoa have told us you have not the exact figures with you, but I should like to know, SSw^!^*"*^
by a kind of calculating from the surplus, and by taking the receipts which you have
said this morning were about £2,970,000, how to arrive at the various items which
make up the difference. In taking the receipts at £2,970,000 we have to make the
following reductions : The interest on bonds and redemptions I take to be £335,500.
I put it m this way. Of course it is somewhat a smaller item, and some bonds are
nob redeemed. The guaranteed interest to shareholders is £66,000, that is 6 per cent,
on 11,000,000 florins. That would be a total of £698,750. This, deducted from the
£2,970,000, leaves £2,271,250. Now, you mention that the interest on the bonds
which were issued for the Natal line— or, I ought to put it differently — for the Natal
section, would increase the item to £335,000. Can you tell me about how much that
would be ? — I don't wish to commit myself to figures, which are at present being
printed, and I would not speak from memory.

In other points you give us figures, but do not give us the basis on which you
arrive at them. It is possible for us, in discussing the whole matter, to arrive at a
certain conclusion ?— You can only compare the figurea

Then you cannot give us the basis on which you arrive at the £800,000 surplus ? £8oo,ooo Nether.

1^^ ^ © J » r lands R«Uw»y

— vWO. surploi.

We can only gather from the figures you submit to us, that the shareholders of the ^^JSadJiuS
company for the year 1896 received 13 J per cent. ? — I cannot say whether the figures way foriaoc
are correct, but it is about that.

I have mentioned it, because I have not had any contradiction so far that the
shareholders got 13^ per cent That means that they got over and above the
guaranteed interest of £66,250 another £89,000. The concession provides that one-third
surplus which remain^ after the Government has received its share, shall be bodtu to Mr«on
divided amongst the employees. That would come to about £44,500. You take then J^dJ'i^uwJr
two-thirds for the directors and one-third for the remainder, that is about £15,000 and
£30,000. Now I much re^t I have not the basis to work, as regards the actual
working expenses, because the fissures before me, wluch I submitted to the Commission
as evidence, show that if certain reductions took place in the rates, yet the shareholders

328 Mr. Q. A. A. Middetbel^'t Evidence*

^dend'of Nete- "^o^^^ receive an 8 J per cent dividend, which anyhow, in my opinion and generally,

erunds Bau- is Considered a very good rate of interest — ^I£ your figures are just and correct, it

tiono°ratea^ would be a Very agreeable surprise, not alone to us, because that would show me that

the figures would be too low and that agreeable suprise would show that the figures

would be available to efiect reductions, so that I really must express the hope that the

figures prove to be correct, though I don't believe they are.

I have since found some inaccuracies so far lets the rates in goods and passengers

are concerned, as the duty has been included, but taking this into consideration, the

figures are improved. But from the figures we now have before us, and which it is to

be resetted, are incomplete, it would prove that yet a substantial surplus does exists

and these figures would also prove that the working expenses have not decreased in the

ratio of the extension of the traffic, for whilst the proportion of the reduction of the

working expenses in 1895 is about 43 per cent, they are most likely more for 1896.

^RiSwa'* hold! ^^^^ *"* regards the adjoining compames, if, as I hold, the Netherlands Railway calls a

key of position railway conference, ana declares that thev are going to lower their rates on the Delagoa

Bay line, in consequence of the matter which has been brought before the C!ommis8KHi

ana from the Commission to the Government, then the Cape Government as well as the

Natal will be compelled to also lower the rates in order to maintain their shares of the

traffic. Now is there any agreement between the railway companies which prevents

^^?if °^ d! ^^^ Netherlands Company taking this step ? — There is an agreement with tne Natal

BidiwaV trith Government published, and pubhc property ; there is an agreement with the Free

otherwuways. g^^^^ Govemmeut about an amicable arrangement of the tarm ; and further, with the

Portuguese Government regulating the shares and the freight ; beyond that there is no

fixed agreement

It would appear that this agreement does not prevent the Netherlands Company
from coming forward with these proposals. — A proposal anyone can make, but
whether sudi proposal be accepted is another question. There may be serious and
weighty arguments for not accepting the proposal by the other party ; I cannot say
before the time comes.

The only reason I can see is that they would want to make an unjustifiable
profit out of the traffic to the Band. — You see the different railway administratioDB
Govemmentoon- are entirely under the control of the different governments, consequently it is the
^can ^ o^^ governments of these different companies and their parliaments to say how far they will
onui wuways. co-opcratc, or what pressure, in the other direction, to this Government they will giva
NetheriAndB It would appear that the Netherlands Railway holds the key in their hands, and
keyoT^tion if they have the earnest will to help the mining industry here, not alone to maintain
a great number of mines which at the present moment everyone knows cannot pay,
but also to further the interests of the mming industry — if this desire exists on the
part of the Netherlands, the situation can be materially altered. Then I have also
soutib African read that semi-official declarations have been made in Capetown that, as far as the
uAtira!^ " Cape is concerned, they are anxious to reduce the rates in order not to jeopardise the
industry in this part Therefore, you acknowledge the company could do a great deal
in the matter. — ^If that should be, the Cape Government Railway is a philanthrojue
institution. There may be another explanation, that thev are not satisfied with tbeir
share in the traffic. That, reading between the lines, I take to be a threat held oat by
the Cape Colony in the correspondence which is contained in the agreement, namelyi vol
the declaration by Commissioner Laing.

That was in 1892. — ^The end of 1894 ; a couple of months before the opening d
the Delagoa Bay line.

Don t you think the situation has greatly changed since then. At that time i^
would appear from your remarks that uie Cape tried to do everything to stifle tb^

Mr. Q. A. A. Middeibers^'s Evidence. 329

Netherlands Bailway Company on its Delagoa Bay line, but now it has to reckon
"with it as an accoinplishea fact — I would replv to that by a fact that has happened
lately. When the Riee State Bailway was taken over by the Government of the ^'^^^o!^^^
Free State, the Gape 49eriously threatened to stop the entire traffic to this Republic, to Fnesuteand
compel the Free State to concede their demanda So that to think that the Cape ^'^^ »U'»*y»-
<3ovemment administration would be ready to sacrifice everything for its philan-
thropical feelings towards this Republic or Johannesburg, is not borne out oy the
&ct8 of later time&

I should say the Cape is less stimulated by philanthropic motives than by the
reason that they see verv well if these high rateis are maintained they will be a much
greater loser than by reducing the rates. If the traffic were to lose by about one-half
of what it is at present, they would — having all their lines opened and having their
money invested in them — lose much more than by reducing their rates materially. I
think the same argument also holds in regard to the Netherlands. — I don't know
what is in the minds of the Cape administration, but I only refer to the fact that a
short time ago the Cape administration threatened to stop all traffic sooner than give
in to the demands of the Free State. The object was to raise the share of the Cape
administration to such an extent that there would be very little chance of traffic with
the Transvaal unless the Free State gave in.

Yes, but they would have injured themselves, and I suppose it was only a little
bit of bluff. The result has shown that the Free State got its own way. — Yea

Mr. Pierce,

Are the railways in Holland owned by the State or by private companies ? — ^tl^**,an!
One-half of the railways are owned by private companies and one-half are owned by waya.
the State, but exploited, or worked, by private companiea

Were the half now belonging to the State originally State railways, or belonging
to private companies ? — They were built by the St^te.

And afterwards leased ? — And afterwards leased to the company who worked it.

Are the railways generally on the continent owned by the State ? — I cannot say ownenhip of
the greater portion, but a considerable portion ; the French only a small proportion, SiSiiiii*'***'
the German a greater proportion, and the Austrian a small proportion.

Do the^ railways play an important part in those countries ? — like in this
countey, of course.

They are very useful in developing the country ? — As you see here.

And the country and people are entitled to the railway for assistance? — As they
always get

We have been told that certain railways in Germany carry coal at rates which ^^^Uj^jJ^*^^
barely cover expenses. Is that in order to encourage mining in certain districts muny. ^
through which tne railway passes ? — The recison is more to be able to compete with
foreign coal. In Hamburg and North Germany they only get a very low tariff for
-coal, in order to exclude English coal.

Can you tell us if goods are carried in Holland at special rates in order to foster ^^^ «p^**i
industries ? — Only amall rates to ports, in order to get the through transport from ^"^ **
porta

Still they do carry goods at very low rates in order to assist ? — ^They carry at a
Taie which pays expenses and a certain interest. The great element in all railway

tariffs is how much the population can carry.

It is not the object to get as much out of the industry as they can ? — Well, in *^jj ^^"^

330 Mr. Q. A. A. Middelberg's Evideiicr.

England it is that way. The only object is high dividends. That they do not
succeed in making high dividends is not tifieir fault.

Do yon know that in England complaints have been made from time to time
abont the high rates of railways, and those rates have formed the subject of enquiry
by the Board of Trade, with the result that the railway has been compelled to reduce
them ? — I don't know whether they were obliged to do so. I know about the
passenger rates on the so-called Parliamentary ti^ins, but that was a rate granted in
their concessions by the companies to the Government I don't know that the
Government have compelled the railway companies to lower the rates <hi goods, or
whether they are allowed by law to do so.
BtatosofNether- Well, it is a fact that they have done so. Do you consider the Netherlaxids
^^' BaQway a private company ? — It is a quarrel about the name. You know the con-
cession, and you know uie articles of association.

Can you give any other instance of a so-called private company in which the
Government is the largest shareholder, and whose debentures are guaranteed by the
Government ? — I cannot recall one just at the moment.

The position is a rather anomalous one. It is an unusual one, is it not ? — ^No, I

don't think the Italian railways differ very much from our system. Take the

railways in the Netherlands, where the railway is the property of the State. The

company who work the railway have a very small capital and consequently a very

small risk.

Netheriandi They are the lessees of the railways, not the owners. Do you consider the

T r an Bv* a 1 Netherlands Bailway has, through its rates an important influence on the develop-

J^JJJ2Je*^^ ment of the trade or industries of this coimtry generally, agriculture as well aa

mining ? — That is very probable, although I have not got an absolute certainty of

that in my mind. I have noticed on repeated occasions that when taxes or railway

rates have been reduced, no reduction takes place in the price of foodstuffii or goods in

the retail trade. Is has repeatedly occurred that the lowering of taxes or tarifli^

simply puts more profit into the pockets of the middlemen, wiuiout a profit to the

consumer.

That has not been the experience in other countries. From some instances given
of the railways in other parts of the world, it appears that the rates charged in
Holland are very low. — We have already discussed that this morning.

Low and high Do you Consider low rates or high rates best calculated to assist the industry ? —
faiiway rates, rpj^^ question is not Capable of a direct reply at once. I can imagine that a certain
tariff existing gives a certain development to an industry, but the lowering of the
railway tariff would not assist in any material way to foster such an incmstiy as
agriculture, because the only reason of the development is certainly not to be soc^t
alone in railway rates.

Still it helps it. If the lowering of rates does not assist an industry, why is it
that manufacturers and others are so anxious to get low rates ? — I don't think ia
order to foster the industry, but for their own benefit.

Effects of a rail- You say in your statement, in speaking of the tariff war, that this would

way rates war }^yQ \)qqjx greatly to the detriment of the whole of South Africa and its Governments.

Would you give us an explanation of that. How would the Government suf^ f^

For instance, the mining industry is in a flourishing condition, as it has been up till

the last six months — as it appears to have been up till the last six montha

Now, is it possible that, with a lower tariff, a great surplus might be ^
out in the shape of dividends and bonuses, and a great deal might be sent tfr
England ? — ^The higher railway tariff gives the Cape Colony, Free State, Natal, and

Mr. Q. A. A. Middelberg's Evidence. 331

this Bepublic the means to develop the country by the building of railways, the
assisting of railways which do not pay, improving luurbours, etc, etc. Then certainly
the question is what is best for the entire community.

You say you could have induced a tariff war instead of stalling it off? It is
evident that if the rates had been lowered, and so brought on a tariff war, somebody
must have benefited. It could only have been the people here in this country.
Therefore, by not bringing on this tariff war, and so getting reduced rates per-
manently, you have done the people of this country a very bad turn ? — I don't agree
with you there. I have never heard that the railway tariff war would have been
of anv permanent benefit to the people of this country. It would only have been of
benefit to a few.

As a matter of fact, where a tariff war has taken place, rates have never returned
to their old level ? — I would ask, is that a benefit or is it a disadvantage ? You only
refer to the benefit to one particular industry. I argue from the broad standpoint of
what is best for the whole community. I don't admit that the low tariff of railway
rates is under every circumstance best for the whole Republic.

Well, many people think differently. — But I believe that many people are wrong.

Has the Netherlands Railway approached Natal and Cape Colony with a view ^«JjJ**°J ^|
to reducing rates ? — No. w»ynLsfrom

If the Netherlands Railway were agreeable to reduce their rates from Vereenig-
ing to Johannesburg — You see, I don't admit that the rate of 7*7d. is the tariff from
Vereeniging to here. That was fully discussed this morning.

It might not be the tariff, but it is not denied that the Netherlands Railway
receive it — That has been already discussed this morning.

You do ^et it There is no doubt about that— I don't say yes or no. I simply
refer to the discussion this morning.

Well, we will take it as a fact that they do get it If the Netherlands were

willing to reduce the rates to assist the industry, would it be open to them to reduce
that charge? — That is only a matter of arrangement between the Cape Colonial
Oovemment and the Netherlands Railway. You can only mention the question of
the reduction of tariff.

Yes, but I want to mention the tariff received by the Netherlands Company. —
The onlyquestion you have to do with is the tariff you have to pay for carrying your
j;ood& What the division is you have nothing to do with.

Well, as we have to pay for it, I think it does matter. — You don't pay it

You don't deny that you get the proportion of that charge for through rates? —
No, I don't deny that That you will find in any tariff book.

If the Netherlands Company were willing to help the industry, could they not Netherlands
give up a portion of that ? — I don't see why you should always come back to that Jj^'^^co^'
point I am prepared, as I said this morning, to co-operate towards a reduction. SI?*h"^S^

Well, that is satisfactory at any rate. You have heard that the Cape Gk)vei*nment way rates tram
resolved to make a reduction of 6s. 8d. in the carriage of cement, and that the Nether- ^^"^
lands Company induced them to withdraw the reduction by threatening to put on the increase of rau-
difference at this end. Is there any truth in that ? — I have been trying to get at the ^©nt ^ **°
truth of that assertion. I have even asked Mr. Goldmann by letter, to put me on the
trace of that rumour, but he has refused to ^ve me the name of the informer. But
I know I cannot trace a particle of truth in that statement I know nothing of it

Is the rate charged on goods the same to all towns or points in the Transvaal ; I ^^*J5^,Si'^'
have heard that the rate charged on goods to Heidelberg is the same as the rate f^ooda.
tharged to Johannesburg ? — No, that is not a fact

332 Mr. Q. A. A. Middelberg's Evidence.

Overcharges. j^ jg ^Iso stated that in certain cases where goods are carried to places beyond

the actual destination, the consignees are charged an overchar^. The Jumpers and
Heriot had to pay caniage on goods to Johannesburg and back ? — ^That might be
true, because, perhaps, these goods had to be cleared for Customs in Johannesburg.
But it is just as easy to consign the goods to Elandsfontein, and send them from
there to the Jumpers. It might, too, be the fault of the agent at the port, who*
simply consigns to Johannesburg.

It is the fault of the consignors then ? — In very many cases it would be.

R^jjy^^o' What justification is there for charging the same rate for large tanks and boilers,,

^ which occupy much cubic space., as for rails and girders, which occupy a small space t

— ^That remark is very just. We have got in our tariffs an increased rate for bulky

goods, but we have had to waive that because the other administrations have not got

a similar charge. It ought to be done, but it is never done. We, for a long time,

Persisted in following a similar calculation for furniture, which is very li^t, but
ulky, but have had to abandon it because the other administrations have not got a
similar charge.

Has an effort been made to try and reduce them ? — Discussion has taken place,,
but never a serious effort. The fear to introduce any novelty in the existing tarifis haa
kept them back.

Is it true that in Holland the rates for truck loads are very much smaller thaa
the rates for lots ? — There are cases where it happena

What could the mining companies do to assist the railway to reduce expenses and
make it possible to carry goods at lower rates ? — I believe very little. I think in that
way the railway has to look after itself.
••pightinsrmteB" What do you mean by fighting rates ? — A fighting rate is, for instance, a rate that

is far below the real cost, and also the rate to places where competition exists. For
instance, from Johannesburg to the Free State or Cape Colony.
Diflerentdai wu- There is uo railway competition in the Transvaal ? — ^No, but the tariff here is
w^ratee on Jowcr than to Bloemfontcin, Kimberley, eta

The fact that the rate to Kimberley is higher than the rate to here has been
explained in another way. — And Bloemfontein ?

I don't know about Bloemfontein. That concerns the Free Stata It is a small —
community in Bloemfontein. — There is no reason to charge burghers more in a smalL
place than in a big one.
Advantages to You refer to the saving that would be effected. Do you consider, if the railwaj^^
Son of*f3S»y rates were lowered, that is all the benefit the mining industry would get ? — That is all.
»*«* the State and the railway company would get.

Yes, but that is not all the mining industry expects to get. That is a veiy hand*
some sum itself, but, if the railway rates were reduced all round, including the ColonifiJ
rates, the mining industry would benefit to the extent of about three times that som.
Evidence has been given of the average pay of white miners. Can you tell me the
Wages of Euro- average pay of European employees on the railway ? — I cannot give you the averaga
empioyeSr*^ The lower officials are paid aoout the same as in the mining industry. I also take into
consideration that the railway has a surer income, and enjoys greater advantages than
the mining industry.

You think, then, the rate of pay to the railway employees is just about the same
as paid to the mining industry ? — Yes.

About what pay would these men get in Holland ? — A man who ^ts £20 a month
here would get in Holland from £100 to £125 per annum at the outside.
Differentua ndi- In reference to a question as to the rates to a place with a small population being

jw^jmtw on jjjgj^g^ ^Ija^jj Ijq q^ large town, witness said the question of population was no reason

Mr. Q. A. A. Middelberg'8 Evidence. 833

why living should cost more ip a small place. So far as he knew, that was not done
in England. That was agamst every principle of a railway as a public institution.
Every ratepayer would protest most earnestly to his representatives in Parliament
against any privileges being granted in that manner to any laorge centrea

In other countries it generally happens there is competition in railways, but we Railway oompet
have none here ? — In some countries it is so, and in some it is not In France and ^^^
Qermany there is no competition. They are all State railways, or big groups, which do
not compete with one another.

The fact that there is no competition in some countries, Qermany for instance,
was one of the reasons the Government took over the railway ? — I don't think that is
one of the reasons.

It may not have been the sole reason, but it was one of them. — That is quite new
tome

Mr. Albu.

Tou say fighting rates are those which leave a very small margin to those running ••Fightiiigntet'
the railways ? — I don't say that is in all circumstances a decided definition of fighting
ratea

The Netherlands Railway is employing fighting rates at the present moment ? —
We are.

And when I look at the balance sheet, and find that you have got a mUlion and a
half revenue over your expenditure or working expenses, I think your fighting rates
are very stiff*. — And still leaves the opposition very healthy.

Yes, unfortunately, there is no opposition here. The unfortunate thing is that
the industry pays these fighting rates. — Only within the last few months you have
eome to the conclusion there is something unhealthy about the industry.

Not for the last few months, but for the last five years. You have not seen that?
—No.

The industry is so healthy that 185 companies have invested at par fully 85
millions, but a lot had been subscribed for at a hi^h premium. I think the industry
paid last year about a million and a half in dividends. Do you consider it healthy Dividends o
that the Netherlands railway, with a capital of one million, makes a profit of nearly a therUn^Rau
million. You have said our industry is a healthy one. I am proving it is not, and thai '"^ profits.
yours is much more healthy than ours is. — I cannot say whether the situation is
healthy or not. It is in the hands of the Commission.

You have the key of the situation in your hands in Delagoa Bay. What prevents ^^tJu •'^"1^!
you from reducing the rates to such an extent that the traffic from Natal and Cape keyof^tior
Colony would be threatened, and they would be thereby compelled to reduce too. ^^Sl^v^
What prevents you from doing that ? — 1 just gave a very plain explanation of that to
Mr. Pierce. If there was only one consideration in South Africa, namely, the industry
of Johannesburg, then it wouJd be quite easy, but other industries have also a right to
be heard in the lowering of the tariffs.

I have lived 21 years in South Africa, and there is only one consideration and one
industry in South Africa, and that is the Transvaal gold mines. There is nothing else
in the whole of South Africa so far. — ^Then I suppose Natal and the Cape Colony
would also appreciate that fact.

Yes, but so long as you keep the Delagoa Bay rate so high, just a little lower than
the others, they won't lower it. Finding you have the key of the position you must
reduce the tariff to such an extent that tne Cape traffic is endangered and they will at
once acquiesce. — ^Then the consequence will be certainly to your benefit, but to the
detriment of whom ?

334 Mr. Q. X A. Middetberg's Evidence.

Nobody. — If there was no agriculture or anything else but the mining industry,
then certainly you are right

Agriculture would profit immensely if the produce could be brought to the market,
which is Johannesburg, and no other town. I don't see why you don't force the
situation. By doing this you would support the whole industry, the industry of South
Africa. — ^And if we do as we do at present we support the State. The Commission is
here to give a reply to that. I have already saia the result of that reply will certainly
not excite any opposition from me.

As I have the honour to be a member of this Commission, although I may not be
asked to be present when the report is handed in, I should like to know what prevents
the Netherlands Railway from making use of the key which they have in their power ?

Chairman.
You simply all go round the one point, and do not go any further.

Mr. Albu.
Yes, because I don't get a satisfactory answer.

Chairman.
^«8 of NetEer^ ^^ questiou is — ^what is the position of the railway, and what are the profits

lands BaUway. tO-day ?

Mr. AU)u,
Then I cannot get even what the profits are.

ChairmarL

We want to find out in what way the mines are oppressed, and to take allC
particulars. Then it is for the Commission to come together to discuss the difi*erentt^
points and frame their report

Mr. Albu,

Yes, but I have not been able to find out what the profits are.

ChairTTvan.

Mr. Middelberg has promised us this morning that before the report is made up hy
the Commission, he will hand in the official report for 1896, which is not yet in tu9
handa

Witness,] I have given the profits. The only things I cannot supply are those
particulars which are not yet fixed.

Mr. AU)u.

Thank you very much.

Mr. Hay,

coajtions for As far as I understand, the position is this : a reduction in the tariff depends
nxSn^y nte& UDOU practically the extension or alteration of the concession which you have.— No,
that is not correct

Do I understand that means an extension of time ? — ^It means that, supposing the
Volksraad this session resolved to expropriate the railway, then we could not poflsiUy
give a lower tariff.

If the Government agreed to take it over, according to the agreement, they wonW
have to give a year's notice, and the tariff would remain as it is? — Up to the end of
next year.

Mr. Q. A. A. Middelberg*s Evidence. 335

If we go to the Netherlands Railway as a company, and ask them to rednce the
tariff, would they want an alteration in their concession ? — No, the concession fixes the
maximum tarifis.

The question is, here there is a surplus which, Mr. Middelber^ says, would be given
away by the Qovemment, of £500,000. But if the tariff was reduced-— the passengers
and goods exactly the same — then the revenue would be reduced, and therefore' the
profit accruing to the shareholder would be naturally lesa Do I understand that Mr. ^S^^xiSi^ie ^
Middelberg would be agreeable, as far as he can speak, to a general reduction ? — Yes. S^wJ^wS

Then the point put us by the different people who have given evidence is that a rates.
^mall proportion of the mining companies pay dividends, and a large proportion of
4hem pay nothing, and if many of them cannot effect a reduction in the cost of work-
ing, then they must close down the mines. If that occurs, then the revenue of the
railway would be reduced. Therefore, it is to the interest of the railway to have as
jDany companies at work as possible, and, therefore, if the reduction of the tariff would
•ensure the working of the whole of the mines and the opening of mineb which are not
^t work, it might probably make up the profit which they gave away by the reduction
•of tariff. — That is a thing which theoretically seems to be quite correct, but to which increawd re-
"we are not accustomed yet in South Africa. Here there has always been an increase, wiESi'^SS^
*<<ven in this last month of so-called depression. We have always had an increase in ^y*
^e receipts, so the subject for me — that is, during the last year — has never been what
U had to do supposing traffic should diminish, but always what I had to do to cope
with the increase. So I never trouble very much about the dark future or the
thought that in case it were realised there would be a ^reat retrocession of business.

The evidence we have had is that a large number of mines must close down
imless they can work at a profit — ^I cannot see the result of that yet within my
^narrow horizon.

But Mr. Middelberg must see that it must come about. — It is quite possible.

The gold produced last year is only worth seven millions, and the profits of the
Jfetherlands, the Cape, and Watal Railways comes to nearly half that. — ^So the result Prodti of oape,
is that the Cape Colony, Free State, Natal, and this Republic get a good share of the SwSllnd^ran'
^Id, which I think is a very happy sign. ^"•yt.

If the railway people are to get all the profit, how can the mines live ? — ^I have
been asking myself that question for the last two or three years.

One question in regard to the carrying of coal in bulk. What are the charges sidings,
for a siding ? — The charges for sidings are that the company pays for the construction,
and for every truck or wagon used on the siding, 48.

Then the responsibility of the engine rests with the company that makes the
49iding whether an accident be the fault of the Netherlands or not ? — ^That has to be
proved first

The question of the railway tariff is simply that the Netherlands must decide to ^1^^®'* how!
reduce their tariff, and the Cape and Natal lines are compelled to do so. You, Mr. kejofpodtton
Middelberg, are a man of lon^ experience, and we have omy a superficial knowledge
Perhaps you will be able to advise us on what points reductions can be mada I have
here a number of questions which I wish to put, and these I can hand to Mr. Middel-
berg, and also a copy to the Commission, and this will save going through them, as
that would take too long.

This arrangement was agreed upon.

Mr. BraJchan.

I should like to have a little information about the following passage, which
appears in your statement: — ^"I can only speak of the share which the company

336 Mr. a. A. A. Middelberg's Evidence.

receives, and I, for myself, can declare that, should the Qovemment consider that we
by continuance served to work the line, and should the assurance be obtained, we
would have no objection to meet the wishes of the Government." Are we to under-
^^^SdiSion of ^^'^^^ irom this that the Netherlands Railway Company will make a reduction of
fouway rates, ratcs in casc the State foregoes for a certain period the right to expropriate the
railway ? — ^That would be a matter for negotiation with the Government. What I
wanted to express is that if the railway company, according to the desire of the
Johannesburg mining industi^, is expropriated this year — and one cannot expect that
without compensation — the amoimt lor expropriation would be considerably lower.

If the Government think it wise to enter into this arrangement, the Government
would deprive itself of or forego the benefits which would acrue to it from expropria-
tion until such time as is decided upon ? — Certainly.

I was desirous of having this point clear, because I think it is a very important
matter for the welfare of the State in throwing light on the question of exDropria-
tion. Because if this arrangement, as suggested, were to be entered into, the Nether-
lands Railway Company would have absolute power later on. — ^I cannot agree with
your last conclusion. I do not see how the Railway Company can at any time acquire
power to do what they like.

I do not mean to convey that in a very broad sense. — Within a narrow sense it
would not apply.

It would in so far that the Government would never be satisfied with the profit

they get out of it, whereas if expropriation should take place at any time with one

ExOTopriation of year's uoticc, the benefits might be much larger ? — ^It is for the Government to judge

^^' of the benefits of immediate expropriation, or if expropriation be postponed.
^*^?S?u ' *^fnS* ^ ^^^ ^^ Article 27 that notice of expropriation can be given at any time. —

£ay. *^°** Notice can be given at any time, but it must run for a calendar year.

Is it so expressed in the concession ? — ^No, there is a correspondence settling that
point.

Mr. Brochon.

Yesterday you said that in case of a mine not paying dividends for three yeara
you would be willing to meet them by a restitution of rates. Is that correct ? — Yes.

By acting so it will be a rather late remedy. — It is for this Commission to make
a recommendation on that point.

Still I am pleased to learn of the disposition on the part of the Railway to make
this reduction.

Mr. Hugo,

oost of expro- Yesterday, in reply to a question put by Mr. Albu, you stated that if the Oovern-

l^tionofraii. j^^j^^ went in for expropriation that about 150 per cent, would have to be paid.— No;
150 per cent, above par.

It would mean about £250 per share. — The calculation is very easy to make.
Let us estimate that the extraordinary dividend above the guaranteed interest is
taken on a three years' average at 6 per cent. Then take it that all shares are 6 p^
cent, shares ; then average the dividend for the last three years, and that would be l!
per cent. Twelve times 20 is 240, and add to that 1 per cent, for each year from
1898 to 1915, i.e, 17 per cent., then you get the figure of 257 per cent.

That is if the Government expropriate the railway at the end of 1898 ? — ^Yes.
R^iwfcyratcion With reference to the coal, the average cost of transport is about 3d. per ton per

mile ? — From Springs to Johannesburg a little over 2d. is charged. It is a slidioj^

Railway rates.

Mr. Q. A. A. Middelberg's Evidence. 337

scale in conjunction with the coal mine to give the Brugsprait and Balmoral collieries
a chance to carry their coaL

May I ask what you would suggest as a reduction on that tariff? — As to the Reduction of
question of how much coal rates can be reduced, it would depend on other tariffs. By ^^, ^^*
a reduction of 1& per ton, the loss, reckoned on last month's returns, would be £4,400,
and you idways have to make the reduction in such a manner that the difference
between the price of carriage between Springs remains what it is at present, otherwise
it would be a great disadvantage, and a great injustice to mines brought into life
under the present arrangement.

The muiing industry complain that they have to carry their coal in bags, and not Traffic of coai in
in bulk. — I cannot understand where the accusation comes from. We do everything ^**^
in our power to encourage carrying coal in bulk. As I have said, at the present
moment one of the mines that has not got a siding is trying to carry its coal in bulk.

What is the local tariff between here and Vereeniging? — It is 6d. for ordinary vcreenigingand
goods, and 3d. per ton for rough gooda i^ ^^^§

The industry has promised us, and if the Government will assist us in getting ^^^
this reduction they will endeavour to reduce their expenses. Isn't it possible For the
railway company to reduce your working expenses, or are the present expenses as low induction of Ne-
as they can possibly be ? — The present working expenses are as low as they can be iSfy^^^rw^
imder present circumstances. «*^«

Mr. Smit

You mean to say that if the profits of the railway remain as at present the cost oo^ of expro-
of expropriation would be less every year ? — One per cent, less every year. ^. ^^

And the concession has still got to run eighteen years ? — Yes. Length of Neth-

Mr. Fitzpatrick has stated that several lines have had to wait on account of the ®™*^oonwB-
plans having had to go to Holland ? — ^That statement is entirely incorrect. No plan SoJ.
ias ever been sent to Holland to be judged upon, the only exception to this being the ^NetS^eriMid*
^^way station here, which was worked out by an architect in Europe. Railway woria

It was stated by Mr. Fitzpatrick that there was a profit of £1,300,000 ? — ^It will ^^^i^^^^'
^ery soon be seen from the printed report that the figure I have given is the correct for isoc ^^
Oiie.

The reserve fund is £290,000; the public would like to know what became of ^J^^JJ!J^„5J
^t — The reserve fund fund goes to building stations, laying double lines, buying rolling RaUway.
^tock, and, further, the expenses of each Ime — as laid down by the concession — is not
<)ebited to capital account, but is taken from the reserve f imd, which is fed from the
Revenue. This is a sound stipulation in the concession, as under it the Government,
On expropriation, gets value which is far and above the original cost of the railway
^nd improvements. Take, for instance, that in ten years that every year £300,000 —
to quote round figures — is taken, that is £3,000,000. This is used to improve the
ttdlway and for doubling lines, so that the railway gets a larger value, and the
^rtion of the £3,000,000 not being used for that purpose remains in the reserve
cond and goes back to the Government without any reduction.

Was the reserve fund last year sufficient? — It was sufficient for the rail ex-
tension in South Africa, but it has not been sufficient for the large increase of rolling
Btock. Therefore, the Yolksraad have approved of a loan which will have to be
t^paid by the reserve fund itself.

Mr. Bobinson has stated here that he has taken a lot of trouble to get a siding at sidings.
one of his mines and could not get it. — I have tried to find out which is alluded to.
ttr. Bobinson has many mines and I don't know of any refusal to give him a siding.
I know of a case where, after a long correspondence and a lot of trouble being taken,

338 Mr. Q. A. A. Middelberg's Evidence.

the idea was relinquished. Perhaps Mr. Robinson refers to the correspondence of a
couple of years ago to make sidings for a group of mines — ^the Langlaagte Boyal and
Block B — where bigger efforts would be made to put coal in trucks to allow the
wagons to go up to the mines. But that was dropped by these mines,
'^"^f^re'nce-^ At the Rauway Conference at Pretoria a little time ago, can you tell me why no
^penuways* arrangement was come to about the tariff, eta? — ^The reason was that, notwith-
propoaaia. standing the promise of the Premier of the Cape Ministry, the delegates from the
Cape Railway asked for a much bigger share of the traffic for themselves than any of
the other railway companies were prepared to rive. The Cape Railways wanted half
of the traffic oversea to come over tne Cape lines, and besides that the Cape line
should 2et a bigger share of the traffic between the port and Johannesburg — jyro nUa
to the length of their line. That proposal, worked out, came to this, that the Cape
would have half of the oversea traffic, and that the goods would have to be carried
from Mid-Vaal River to Johannesburg free of charge. It was clear that the proposal
was made because the delegates did not wish to go home without making some
proposal

Is it a fact the Cape wanted three-fifths, and wanted to give the other railways
two-fifths ? — The Cape has tried to get everything. I know that some time ago Mr.
Laing^, Commissioner, thought he would be satisfied with half, but he afterwards
thought he went too far.

The railway administrations could not agree to take two-fifths between them ? —
It was ridiculous.

Mr. Joubcrt.

oonditionBofex- In the couccssiou it is left to the Government to expropriate the railway when-
ggpr^tion of ^^gj, ^j^gy ^yjjj^ fi^ ?_Yea

Under what conditions can the Government expropriate ? — The railway is to be ,
liquidated, has to pay all its liabilities and receive ail its assets, must pay all its loans,^,
and the money wanted for that purpose must be handed over by the State, and th<
shareholders will receive 20 times the average dividend for the last three years, pi
1 per cent for each year that the expropriation takes place before 1915.

What constitutes the dividend ? — The dividend is formed as follows : Interest i
guaranteed on the shares at 6 and 4^ per cent., and there is an extra dividend of 1
per cent, out of the surplus, but that has never been paid except in 1895, when it
3 per cent

The dividend comes out of the revenue ? — Of course.

If reductions were made in the tariff, and the railway was expropriated, would
not the reduction be far more than 1 per cent? — Undoubtedly, if the revenue getff
less, the expropriation price is less.

Mr. Pierce.

Off . iMuiing of You said your company is now trying experiments to have coal off-loaded in
col in bulk. ^^Y^ What company is it ?— The George Goch.

How long have you been trying the experiments ? — Works are being constructed
which will make it possible.

Then you have not tried experiments yet ? — Not yet

Mr. Q. A. A. Middelberg's Evidence. 339

Questions for Netherlands Sonth Aflpioan Railway Company,

Handed to Mr. Middelberq by Mr. Hay, vrith the answers thereto.

1. Have the regulations of your company, on the strength of which you accept ^^?^*^ j^^ 'JJ

E)d8 for forwarding, been passed by the Volksraad or only by a Committee of the luSiway Ex-
ecutive appointed for that purpose ? ^*^°"^
I consider that the regulations are authorised by the Honourable Volksraad. LUtbiu^ofNeth-

2. Is it a fact that on the strength of these regulations you repudiate liability ^Ij^toj \Stot
for total loss of goods which you carry at a reduced rate, such as deals, iron, etc. ? ^*<>«^-

No.

3. Is it not a fact that your regulations endeavour to contract you out of all
liability for damage and loss ?

4. Has this position of yours ever been contested in a court of law in the
Transvaal ?

Yes.

5. Are you aware that in all other civilised countries, innumerable cases for loss
iuive been decided against the Railway Companies, notwithstanding clauses having
been inserted to the effect of exempting the Railway ?

No ; our case stands wholly on the basis of sound legislation.

6 (a). Do you invariably shield yourself imder the "Owner's Risk" clause, ••o^ne«Rifk-
when unable to trace or deliver goods handed to you for transit under that clause ? rJ^uw.*^*^**"

(b). Have you lost whole truck loads of goods and refused to pay compensation
for such loss ?

(c). Do you contemplate any alteration in the conditions under which you
carry goods at the so-call^ " Owner's Risk " rates ?

{d). How do you account for the frequent losses of goods carried at the so-called
"Owner's Risk " rates ?
(a — 6). No, certainly not.

(c). I intend when eventually altering the tariff to abolish " Owner's Risk."
(d). I know nothing about it.

7. It is a fact that your regulations shield you from claims for loss for any value LUwutyofNeth-

beyond Is. per pound ? J^rfor icSToJ

When classifying for rates does not the higher rate cover such risk, and therefore go«J«-

yon should be liable for losses ?

Yes, but everyone is free to insure for a higher value.

8. Are there not constant complaints of the delay given by your Company in Delay in decid-
dedding on claims for loss and damage ? i^^iSDam-

No more than of any other railway. •*«

9. Does your Company refund the railage, if paid in advance, on goods lost Refund of Raii-
^hflst in transit ? ^ gSJ^" ^^^

N.B. — The Company fails to deliver the goods ; declines to admit claims for such
goods, but yet retains the amount paid for carriage.
Yes.

10. Do you not think that this part of your regulations is manifestly unfair to
tJie public, who are thereby placed absolutely at the mercy of the Railway Company ?

340 Mr. Q. A. A. Middetberg's Evidence.

B«f^^^|Tmck8 11. Is it not a fact that trucks have been refused to forwarding agents i
lagoa y. jj^jj^g^g^ B^y, uuless they signed the clause exempting the Railway from G^ortage an
damage ?

It is a mattter that concerns the Portuguese authorities. I do not, however, belies
that the statement is correct
inepeotion of 12. Do you Consider it fair to the consignee that he should sign for consignmen

by "ooSg^ie to be delivered to sidings, before having had an opportunity of checking the goods ?
tareSR«SS[pt ^^^ ^^^^ ^^^ occur. There is always an opportunity of seeing the goods. On!
on private sidings this can cause difficulties. I see no help for it
Liability of Ne- 13. Is it uot a fact that in cases where a discrepancy is discovered, that you pn

way'rortoMof ducc the clcar receipt and shield yourself under this and repudiate liability for tk
^»<»<^ deficiency ?

Natiu^lly.
seceiptsforcon- 14. When Consignments of a truck load and more are being delivered i

9ignmenu. Johannesburg station, do you decline to give receipts for the separate trolley loadt
Merchants report that you decline to give such receipts and will only sign aiter tl
consignment is completed. Evidence can be produced that the Company declines i
give receipts for each trolley load and afterwards disputes the total quantity.
No, we sign for receipt of portions of consi^ments.
Receipts for 15, Docs uot your Company refuse to give proper receipts for small consigi
jmM|i^conf.jgn- j^q^^ 2 j^ jg statcd that iustauccs can be given where several parcels have been sei
to the station at the same time and the Company make a jotting of the charges on on
delivery note only, initial that note, and positively decline to give any other reoeip
Is not this a contrast to your practice in taking receipts ?
Whenever a receipt is asked for we sign one.
Charges for de- 16. ' Do you consider it a fair charge for demurrage to levy double the tsl

murmire. charged you by the Cape Railway Department ? [ Vide Chamber of Mines Report, p. ?

Use of the Dutch 17. Are you aware of the disadvantage to the mercantUe community in coj
tSS^"Tcthe" ducting your business in the Dutch language ?

lands Railway. ig. Are you awarc that only a very small minority of the mercantile firms wh

are members of the Chamber of Commerce and Mercantile Association, understanc
Dutch, and the majority have to employ translators to enable them to understand youi
letters and notices ?

19. Are you aware that the stafi* at Johannesburg is at a constant disadvantage
in carrying on its work through not being able to understand the mercantile language
of the community ?

(To 17, 18, 19). Yes. One cannot insist too much on the importance of learn-
ing foreign languages and especially the vernacular.
Refusal of initi- 20. Did you rcf use initialed cheques in payment of railage charges ?

ailed cheques [N^O.

RaiSire. 21. Did you insist on payment of railage in coin at the Johannesburg station '

'^^IS'ooin. ' 22. Was not this a serious difficultv to the consignees and to your department?

23. Was not this regulation to insist upon payments in coin a serious risk, both
to consignees and the Company ?

(To 21, 22, 23). No. It does not exist.
^' ether lands 24. Notc. — Rcfor to Chamber of Mines Railway Report, p. 2, re rates per various
Railway rates, gygte^g^ What justification is there for the excessive rates chargea by yotff
administration ?

Refer to p. 5 of Chamber of Mines Report^ Cape Railways carry South African
produce at ^d. per ton per mile.

Mr. Q. A. A. Middelberg'8 Evidence 841

Cape Bailways carry South African produce at

„ „ „ imported „

O. F. S. „ „ South African „

„ imported
N. Z. A. S. M. ,, all produce at

Id.
id.
2d.

— What reason has your Company for charging the extra rate ?
The report of the Chamber of Mines errs altogether as has been fully shown, and
is in this respect quite inaccurate.

25. The delivery charges on packages over 3,000 lbs. weight is 3d. per 100 lbs. i>rfivery charges
Why is a rebate not allowed for the 3,000 lbs. which is alre€uly paid for in the railage,

and the charge only levied on the weight over and above the 3,000 lbs. maximum
according to the regulations ?

It is my intention to extend considerably the limits of the delivery service.

26. Did you have a special contract with Mr. F. R Lingham, by which he had a ^ntoSf***" '
preference of 20 per cent, in rate over other importers ? What amount was paid in
compensation to Mr. Lingham to secure the cancellation of the contract ?

27. Had you a similar contract with Mr. Davies? Did you transport "karri" ^^ tvJot!^'*' °*^"
timber at over 30 per cent, under the actual weight ?

28. What was the reason for giving the parties named preference over other
timber importers ?

(To 26, 27, 28). The questions were fully dealt with before the Commission.

29. Do you consider your employees are experienced railway men ? ^employees. °'
Naturally, if the circumstances are taken into consideration.

30. Have they had previous railway experience or have they only gained
it here ?

All the personnel f No. A large portion ? Yea

31. Importers of produce suflfer considerable loss through shortage. Recently, 8^J^»« °'
<ai6 of your head officials was charged before the Landdrost with having taken certam
quantities of produce, but was acquitted on the ground that these were sweepings. Do

jonr regulations permit your officials to remove goods in this manner belonging to
consignees?
Na

32. Drapers and similar traders complain of your Company taking from 10 to 12 ^^J^2<£!"^*'^
^ys to deliver goods, after the truck has arrived at station here. Cannot you expe-

^te such deliveries ?
Incorrect.

33. There are serious complaints regarding the delays in transit and delivery of ^i^JdeUvSS^f
Uve stock, causing these to arrive here in a deplorable condition. uve-stock.

The fault lies almost exclusively with the consignors.

It is reported that poultry consignments are treated in a similar fashion, and a
<^^ happened the other day where some crates of fowls were put on the delivery
Wagon over-night, left out in the cold and wet, and in consequence between 20 and 30
Were dead next morning. Can you not make some arrangements by which such cruelty
^ loss could be avoided ?

The statements are completely incorrect.

Tou compared rail rates to Johannesburg with those to Eomberley for dvna- Kimberiey Ran-
mite— the Cape charge is 2nd class rate. Etoes not Kimberley submit to the high '^'•'^

342 Mr. W. C. Thomson's Evidence.

rates to Kimberley on all goods and also the high duty on dynamite of 12& 6d»
per ease as a set off against any tax on diamonds, and also supports Colonial coal mines
for the same reason, and therefore is not comparison quite upon different conditions ?

Rates to Mochudi — normal goods, distance from Port Elizabeth, 832 miles, rate
9s. 4d. per 100 lbs. ; Port Elizabeth to Johannesburg, 714 miles, rate 8s. Id. per 100 lb&;
timber 5s. 8d. against 5& 3d. per 100 lbs. ; reasonaUe difference for extra aistanoe and
the fact that aU coal has to be carried such long distances, and again the tonnage
carried is infinitesimal as compared with that to Johannesburg.

The rate to Mochudi has nothing to do with the argument that I have advanced
in reference thereto.
Bates of Nether- Is not the Comparison of N.Z.A.S.M. rates with those on the Beira Railway
BeimRaUwrys altogether ou different local conditions ?

Mr. w c. Thorn Mr. W. C. THOMSON, merchant, then made the following statement :

son'i evidence.

My object in offering evidence before this honourable Commission is to show that«
the economic conditions of mining would be materially enhanced were the Govem-

Biasting mater- mcut to realise and legislatively recognise the fact that forms of blasting material,^

Th^ Transvaal Other than composcd of nitro-glycerine, are in successful use in other mining centres
dymunitemon- throughout the world. The Transvaal dynamite monopoly, which has practically^
been in existence for eight years, is responsible for retarding the introduction of tm
class of explosives that would have performed a large proportion of the work done on th^
Band and elsewhere within the State, in an economical and satisfactory manner with —
out the faintest shadow of risk from accidental explosions. It may be said that thi^
enquiry is only concerned with the pounds, shillings and pence aspect of the questioi
It must, however, without doubt, be acknowledged that economical conditions
working are influenced by considerations quite apart from mere cost price. The lo^s
to the country from the aynamite monopoly is far beyond any figures that have been

De^andioeses laid bcforc your honourable body. When we take into account the thousands of lives
mit?* *^ that have been sacrificed, and the enormous value of property destroyed ; when wa
reckon the loss of time caused by these constantly recurring accidents from dynamite
or gelatine cartridges left unexploded in drill holes, and the daily delays from noxious
fumes — and all in spite of the most stringent regulations that the mining authoritieff
can devise — it will be found that the loss resulting from the employment of nitro-
glycerine compounds has to be reckoned, not by hundreds of thousands, but by
millions of pounds sterling. I do not for one moment mean to say that the quality w

QuautyofTrans- the dynamite and gelatine supplied by the Government contractors is not as ^;ood 88

vaaidynamste. ^^^ ^ bought in any othcr part of the world ; but I do urge the honest recogmtion in

our industrial legislation of the unquestionable fact that all nitro-fflycerine explosives

Dteadvantaereeof are intrinsically dangerous. My contention is, briefly, that had there biaen no
opoiy. **"°"' monopoly, the Rand, and other mining centres within the State, might have beai
supplied with the best and cheapest and safest blasting material procurable. New
inventions, if worthy of encouragement, would have had a chance of being adopted
Inventors in the region of chemistry would have been stimulated to fresh discoverieB
for the benefit of the industry, and Consequently of the State; and with the
healthy competition that woula have ensued, there might have been a reasonable
chance of preventing the growth, to its present dangerous dimensions, of that

••Nobei'i dyna. greater monopoly or ring, known by the name of "Nobel's Dynamite TVostj*

mite trust.- jjj whose hands the Transvaal monopoly practically now ia The object of this

ring is well known to be the strangling oi all competition in whatever part of

the world it can exercise its influence; not so much the competition arising from

the makers of dynamite outside the ring (who are easily reauced to submiasiioi^

Mf."W* C. Thomson *8 Evidence. 343

at the suppression, by eveiy means possible, of such improved modes of blasting
3 threaten to interfere with their interesta In spite, however, of this powerful
ntagonism, there is an explosive, or rather a blasting compound (for it is not
Y itself explosible, like powder, dynamite or gelatine), that has made very con-
derable headway in many parts of the world, notably in Germany, Spain, England,
ianada, British Columbia, Australia, India, and the Cape Colony. The material is
ailed roburite, and since its first introduction, before the granting of . the Lippert BobuHte.
Concession, not one life has been lost by its accidental explosion, for the reason that
ach a thing is impossible. The proved safety of this class of blasting material has safety of robur-
een wisely recognised in South Africa by the Government of the Cape Colony, by the "®-
lunicipal authorities of Port Elizabeth, and by the Harbour Boards of the more
nportant seaports. It is manufactured without restriction in Fort Elizabeth, carried Manufactureand
n the Cape Railways as ordinary merchandise, and shipped from one port to another ililbJSS!* **'
s oi-dinary freight. These privileges were not obtainea until the most searching test
lad been made, and reported upon by the Government chemist and analyst, and con-
vincing proofs afforded by demonstrations in presence of practical experts as to
.bsolute safety. Patent rights for roburite were granted at Pretoria in 1890, but up Robunte patent.
ill now the terms of the dynamite monoply have prevented either the manufacture or
he sale within the Transvaal of any blasting materials of this class. Besides assuring
he incalculable advantages of safety and the innocuousness of its fumes, roburite
ould be sold at from one-half to two-thirds of the present prices of the explosives Price of roburite.
low in use. The employment of blasting materials of this class, by doing away with Advantages of
mdents, would naturally have the effect of inspiring native bovs, as well as white J^buntT*"***'
oiners, with more confidence in their work ; and tne withdrawal oi labour by reason of
oes of life and limb of hundreds of workers being put an end to, labour would necessarily
become the more plentiful, and by so much the cheaper. One of the most serious
obstacles to the increase in the number of native labourers for the mines, is the
nvincSble repugnance of all the Zulu speaking races and of many of the most intelli-
gent and industrious Basuto races to work underground. Those familiar with
he native character and modes of thought will agree that this repugnance has its
origin primarily in the deleterious fumes and in the terrible accidents inseparable
Tom the use of nitro-glycerine explosives; and the majority of them unite in thinking
.hat the elimination of these two serious drawbacks to underground work would
mquestionably, within a short time, tempt thousands of natives (who are now so
irmly prejudiced against this most important department of labour) to abandon their
lot unnatural attitude. It must, therefore, be clear to minds of the meanest capacity Free tnde in
hat the cancellation of the present dynamite monopoly — or at least the removal of all eruST^ "***^
egal obstacles to the importation and use of other classes of blasting materials — would
)enefit the mining industry, not only by the certain prevention of accidents in those
nines which decided to abandon the use of nitro-glycerine explosives, and by the great
Aving of time assured by the absence of noxious fumes after blasting, but also by the
^rtain large increase in the number of natives willing to work underground, and by
:he reduction of wages naturally following such competition. There is no doubt
that, for some purposes, many miners would still prefer gelatine, and there is no
question whatever as to its efficacy; but wherever any blasting material less, Low-power ex-
iiighly concentrated is considered suitable, such as dynamite or black powder p****^®**
the class represented by roburite would undoubtedly be at once preferred. Possibly
ame-half of the work performed in gold and coal mining, and certainly all the work
of prospecting and quarrying, could be better performed in safety than by dangerous safe and dan^r-
Bxploeives, and at infinitely less cost ; and no doubt when prejudice has been overcome, o""®^!*^^^*-
lod experience has been gained by continual practice, it will be found that all blasting

344 Mr. W. C Thomson's Evidenee.

■.■■■■ ■ ■ I ■ » »i. . .. I !■■ I .

operations may be carri^ out without the employment of danfi;erous explosive
will hardly be necessary to dwell long upon the navoc that has been wrought t
^thro^h'itKh 1™^» *^^ property by explosives of the nitro-glycerine class. Every gentleman o
glycerine ex- Commissiou is familiar with the terrible calamity that occurred here 15 month
^ ^^ which cost the country hundreds of lives and hundreds of thousands of pounds ;
the destruction of the town of Santander in Spain a year or two a^o, when <
thousand lives were sacrificed ; with the many disastrous explosions in Eimberl
years past; with the recent Langlaagte Deep calamity (which proved the c
nature of nitro-^lvcerince fumes, by causing tne death of 32 human beings in
minutes), and with the tale of victims furnished us bv the newspapers with sich
regularity. Rules and regulations cannot possibly be framea to prevent
occurrencea Only a few weeks ago in one of the most rigidljr regulated dyr
factories in the world (Nobel's, at ^fljrdeer, in Scotland), five men, including the r©
chemist, were blown to atoms, the only trace of remains recovered bein^ a shii
adhering to a piece of human flesh. I have endeavoured to obtain statistics froi
books 01 the mining inspectors, but have been informed that because of official in
tions received from Pretoria, they were debarred from affording any informatioi
had not already been published. The report for last year not being as yet in p]
had therefore to fall back on the report for 1895, by which it appears that 7{
were killed and 118 more or les3 injured. Judging by the casualties recorded i
Boksburg district inspector's book for 1896 (the only one to which access was o
able), viz., 44 killed and 59 wounded last year, it may safely be assumed thi
deaths and injuries on the Rand mines from this preventible cause, will be quite c
what they were in 1895. Nearly three-fourths of the recorded accidents were c
by natives drilling into or close to holes in which imexploded cartridges still lay.
casualties of the present year bid fair to exceed those of any previous one, for, d
the week of the Langlaagte Deep accident, according to newspaper reports, abc
deaths, to say nothing of mutilations, were recorded. With whatever fault sti»
may tax our legislators, I do not think that the charge of inhumanity can be L
their door ; and I feel certain that it is only necessary to bring the facts I have i
prominently before their notice, in order that they may take steps to -thoroi
investigate this matter, with the aid and advice of otners than those interested i
introduction ^of maintenance of the dynamite monopoly. By permission to allow fair trade in bh
eexp ves jj^g^^^jg^jg ^hj^h do uot coutaiu nitro-glycerfne, the lot of those who form the mai
of the country's prosperity may be ameliorated at an actual financial gain to the I
At the same time the additional safety of the lives and property of the inhabitant
be assured by abolishing the monopoly in dynamite, or, at least, by providing f(
introduction of the class of safety blasting materials to which I have referred,
can afford this honourable Commission any further information on the subject I
be glad to answer such questions as may be put.

Chairman.

^"buribS." ^' ^ When did roburite become known ? — It was invented in 1886.

Why roburite is ^^ ^^ ^8 SO Very good, why should it not be used instead of dynamite ? — ^I »
not more used, answcr for the mines. As I have mentioned in my declaration, Nobel's Dynamite '
is a very widespread organisation. I believe their capital is something lik(
millions, and this dynamite trust has prevented anything of a new nature coming
the market that would injure the interests of this monopoly. Another reason tha
not generally used is that miners are very conservative in regard to explosivei
took about 12 or 13 years from the introduction of dynamite before miners would
to it. They used to employ black powder, and then there was no ring or monop<

Mr. W. C. Thomson's Evidence. 345

■ - ■ - ■> - _ - ■ ■ - ^

{xreveat the introduction of d^nmmite as there is now to hinder the adoption of newer
methods of blasting* In various parts of the world where mining is carried on I can
produce documentary evidence to prove that, in spite of this opposition, roburite has
been preferred. Of course in m&ny places where there is a large consumption of
explosives, the tactics of Nobel's Irust is sufficient to wreck anything but a strong
company. The principal reason why miners in the Transvaal know very little about
roburite is simply b^use they have been forbidden to import it, even in snudl
quantities. Fiv« years ago I had a small quantity, and I was trying experiments at
«ome of the minea A complaint was sent oy the concessionaires to Pretoria that I was
importing this against the law, and I was ordered to appear before the Chief of the
Customs to sive an explanation. If the Government would permit trials to take place, Government
I am perfecUy certain that I would convince not only the Uovemment, but also those item^«^r
who were more directly interested, of the many advantages of roburite. I have met
aoores of miners here who have used i*oburite in England, Australia, and other parts
of the world. If the Commission wished, I could give the names of managers and
miners who mi^t be called as witnessea

Is it better and more harmless than dynamite ? — It is absolutely harmless, safety of lobur-
Until a detonator is added, which is different in composition to a dynamite detonator, ^^'
it wiU not explode at all. Neither fire, concussion, lig^tin^,or other agency which would
ttjplode powder or dynamite could explode roburite. It is a well-known fact among
xnmers and mine managers that roburite would be a verygood substitute for dynamite.
Why have you not made it better known here ? — What is the use of advertising
or making known an article which I am not allowed to sell or import ?

Is it forbidden to make roburite in Europe and use it? — No, there is no monopoly
tiiere.

Is it well known in Europe ? — ^Yes. It is known in Germany, Australia, Spain, uie of roburite
and it is largely used in England, Wales, and Scotland. in Europe.

Do the mine managers here, and contractors and merchants, know of the
existence of roburite 2 — ^Many of them do.

Many gentlemen connected with the mines, including the Chairman of the
Qiunber of Mines, have given evidence before the Commission regarding explosives,
and they have only referred to the dynamite monopoly, and asked for free trade in xhe dynamite
dynamite, but not a single one has mentioned roburita — Of course, they don't mention JJSJJ3S^ *****
any explosives*; they want free trade. If there is free trade and free importation,
then mmers and mine managers will have an opportunity of using whatever explosive
they please. Of course, I may mention, it has never been to the interest of the con-
cessionaires to say anything in favour of any other explosive.

You see the dynamite monopoly is for the importation of all explosives ; so, con-
sequently, when it is proved that for the mines roburite is better, that can be arranged,
through the Government, to import roburite instead of dynamite. — About two
and a half years ago, the Chamber of Mines sent a memorial to the
Yolksraad asking for amelioration with regard to the dynamite monopoly.
It was brought before the Raad, and it was stated by Mr. Vorstman that
as soon as an explosive could be manufactured at a price lower than the present

Kice of dynamite, the Explosives Company was wholly prepared to treat with the
Iders of such patents with regard to the manufacture and sale of such explosive, so that
the mines should have the benefits accruing from such invention. Acting on this, I in-
terviewed Mr. Vorstman, and asked in what way he would allow us to import roburite.
The manlier promised to bring the matter before his directors, and on Sept 5, 1895,
nj^ied that has directors had decided that my offer could not be taken into considera-
tion. I seplied, <ex])vessii]|g ^surprise at this decision in view of the assurance given

846 Mir. ^. C. Thomson's Evidence.

to the Yolksraad, pointing out that roburite was qnite as effective for most mining
purposes as dynamite, ana much more suitable for coal mining and qtBarryin^, to e&y
nothing of its valuable properties of safety, and stating that as under similar con-
ditions as those which the Explosives Company enjoyed from Government, roburite
could be manufactured and sold in the Transvaal at much less than the present pribe
of dynamite — even after providing the Explosives Company with an adequate
consideration for the privilege of working under their ricnts— I should be glad to
know in what manner the Company was " wholly prepared ' to treat with the holder^
of the roburite patent. To that communication a formal acknowledgment was
received, stating that the directors saw no reason to depart from the resolutibn
already come to. My firm had been trying for seven years, without success, to get a
fair trial for roburite in the Transvaal.

BoimriteAodNo- I Understand that the Nobel's people are trying to suppress roburite ? — Yes,
^^'^ they are trying to suppress the manufacture of all articles that interfere with nitro-

glycerine explosives, not only here, but all over the world.

Suppose the dynamite monopoly is taken away and free trade is given ? — ^That
would allow the mines to select their own explosive. I mentioned in my statement
that the Cape Government, in 1890, in view of the many accidents wiiich had
taken place in the Colony, submitted a sample of roburite to a chemical expert, who
after many trials, has given a certificate to the Government guaranteeing its perfect
safety. The Cape Government has allowed us to manufacture roburite in Por-
Elizabeth, and it is sold and conveyed through the countiy without any restriction a«,

Safety of robar- to the observaucc of the Act that applies to dynamite. I need hardly point out iium.
this is a great boon to prospectors and quarrymen, as they can keep the roburit;,
about their work or in their bouses without the slightest dan^r.

I am very pleased with the evidence and your declaration, because it is the firsi
duty to protect life and property, and this evidence will give gr€«it assistance in con-
sidering the dynamite question. People ought to look a^r the lives and property on
the mines, and this is one of the reasons for considering the doing^ away with tba
dynamite monopoly.

Mr. Smit

ExperioMntai- Can you givc US uamcs of people here who have had practical experience of
isto in robur. roburite ?— Yea Mr. Howard Harris, of the Tyne Valley Colliery ; Mr. J. M. Donali
of the Bantjes Consolidated.

Mr. Hugo.

Power of robur- Is it as powcrful as dynamite ? — It is a better explosive than most classes of
*^' dynamite, but it is not as powerful as blasting gelatine. For coal mines it i^

invaluable, not only because it brings out the coal in a more marketable condition,
but because there is no risk should unexploded cartridges happen to be diovelled into
a furnace with the coal, as sometimes occurs, with disastrow results, in the case of
dynamite cartridges. If an opportunity were given in the Transvaal to use roburite
there is little doubt that with the assistance of chemical science, means would be
found to make roburite as strong as blasting gelatine, so that it could be used for th^
very hard rocks in deep level mines.

Mr. Jovhert.

infonnation re- You Say you cauuot get information about the mining disasters last year. If yott

fK^dHLtewf wanted information you should have gone to the head of the department and not te

subordinates ? — I would have done so if I had had time. I cast no reflections on the

Mr. W. C. Thomson^s Evi<tence. 347

officials, but merely state the fact in explanation of my inability to furnish fuller
details as to accident&

Roburite has been receiving my attention for some months, and from the informa-
tion I have on the subject, and which it is my intention to lay before the Commissioi^
I believe it is far safer and less costly than dynamite. ^H^burite!^^

■ ■

Mr. Brochon.

I was induced some years ago to use roburite, and it was fairly satisfactory. You Roborite fumes.
ispeek of the noxiousness of the gas of dynamite ; what is the ^as of roburite ? — I am
not a chemical expert, but I know that the gas roburite emits does not contain carbon-
monoxide, which IS the poisonous gas in dynamite. There are, of course, fumes from
-«very explosive, but gases emitted from roburite are not harmful like those emitted
from nitro-glycerine explosives. I may mention that, in the first inception of roburite,
^obel tried every means to damage its reputation, and it so happened that a miner had ^^^ *°^
•died from the effects of an accident, and it was said that he had been poisoned with
iihe fumes of roburite. Nobel iadustriously circulated this to his agents all over the
"^orld. The directors of roburite institutea a searching medical investigation, with the
xesolt that it was stated on the best authority that the man did not die from the fumes
«^ roburite.

How do you use it? — ^By the aid of a special detonator. The detonator for exploding Manner of ex.
.^latine and dynamite is not of the same character. It is verv smalL It has been f^'^ ^^^
qproved that dynamite cartridges left in a hole may be exploded with a strike of a drill,
^Itttj with roburite, you may strike it with a sledge hammer and it will not explode.

Can you tell us anything about its composition ? — It is composed of the same in- ^^^^^ **'
:^redient8 as the Sprengel class of explosives. Dr. Roth was the inventor of this
purticular explosive. It is composed of nitrate of ammonia, with the addition of an
-extract of coal-tar, commonly called tar salts. The chemical name is chloro-di-nitro-
h&azole.

How if you put fire to it ? — If you place it in a fire it simply bums away.

If you take a dynamite cartridge it will bum too, though part of it when hot ^ Stfe&'ofVj^
enough will exploda Now, does roburite bum right through, or will part of it ex- |^^*°** "^

{►lode ? — ^You cannot ignite it, hence another reason of its being a very good explosive
or mines. It does not sustain combustion. Supposing you take a bucket full of
toburite and plunge into it a red hot iron rod, it would simply blaze up, but, im-
mediately the iron is withdrawn, the flame disappears ; hence it is not liable, like
dynamite, to ignition when, as sometimes happens, the detonator in the priming cart-
ridge is pushed in too far, and the dynamite Ibecomes ignited and sends off poisonous
fiune&

Can you tell us something about the price of roburite, as many witnesses here ^°« *>' roburite
We stated that the actual cost of dynamite is 37s ? What would be the price of
^burite without duty ? What is the price at home ? — It is sold at home at £2 Is. 6d.
per case.

That is very expensive. We can get dynamite at 21a 6d. a case, that is, £43 per
ten — ^I may mention that the power of roburite is greater than dynamite. A smaUer Proportionate
quantity does the same amount of work in proportion of three cases of roburite to four ffi^Tand^
of dynamite. burite.

Do you mean that the roburite is as strong as dynamite ? It is stronger.

What ia the density of roburite? — It is a little more bulky than dynamite.
Wliere you would use 4 ozs. of dynamite in a hole, 3 ozs. of roburite would occupy the
^^e apace, and do equal work.

848 Mr. S. Poote's Evidence

-~ — . 1 I -

Mr. SehmitZ'Dwmont

Tou say youi*s6lf that in many cases the mine manager gives the preference to
gelatine ? — ^Undoubtedly.

Last year the mines used about 40,000 cases of dynamite and 110,000 caaeB oC

e and blasting £relatine. You only mean to substitute roburite for dynamite, not for Uastinir

"'- gelatin! ?-I don't imagine that were roburite permitted to 1^ introduced everybod^

would run and buy it. It would naturally take some time before the mine managers

fully realised the advantages of using roburite.

Have you got any idea of the cost of usin^ roburite instead of blasting gelatine*
for the same work ? — ^ Well, we could sell robunte here for something under £3 per case.

In the one case you take roburite, and in the other gelatine. Which would cost
most ? — Roburite would cost a great deal less, the one against the other, to give tha
same power.

Extensive trials have been made at Home and it has been found that for the —
hard class of work you have here roburite would cost about 30 per cent more thaa.^^
blasting gelatine ? — I daresay 30 per cent more than the low price at which you ge^^
blasting gelatine in America and Euroi>e. I quite agree that roDurite cannot be
as cheap as some of those nitro-glycerine compounds, for the reason that the
cartridge of roburite is chemical. There is no earth or kieselguhr employed in it
manufacture.

Witness thanked the members of the Commission for the manner in which tb&y
had heard him.

ir. samaei Mr. Samxjel Foote, Chairman of the Licensed Victuallers' Association, was next
denoe. Called. He read a statement in Dutch, of which the following is a trans-

lation : —

It affords me great pleasure to be permitted to offer some information to year
honourable Commission upon the old vexed liquor question, especially with r^ard to
its bearing upon the minmg industry. I must, however, admit that I feel the weight
of the heavy responsibility thus imposed upon me in the face of the formidiOde
opposition and grave indictments laid against the liquor traffic, not only by the heads
of the mining community, but also by the Mercantile Association and Chamber of
Commerce, as well as by the various other sections of the community at larga I
pray, therefore, for your kind indulgence. I may be considered, perhaps, as going
somewhat beyond the sphere of this enquiry, upon touching upon that portion ca tb

[iquor tnde de- trade which at first glance may not seem to have any direct bearing upon the minin'
gSid indiiflt^ industry, but I may venture the opinion that all branches of commerce,of which the liow
trade is one of the most important in this State, must be considered equally depenoe
upon the success or failure of the gold industry. The liquor question is one wh?
has exercised civilised nations for many decades past, and the manufacture and sale
wines, spirits, etc., have a considerable influence upon the revenue, I may say, of
whole world, and may consequently be looked upon as a huge commercial item,
some considerable time, I regret to say, the dealers in liquors generally in
Republic have been looked upon as desirous of working in opposition to the interee
the Stato industry ; and in their desire to work on the most economical basif
mining community a^tated what may be termed a hasty draatic legislation, of '
extremists in our midst took immeaiate advantage, the consequence thereof

^?? of iwJ ''^*** ^^ ^^> 1896, which will and must, in its operation, bring about a stato of fir
collapse of those engaged in the trade, as well as enormous loss to the revenue

Mr. S. Foote*s Evidence. 349

State, the extent of which I cannot believe the most honest protectors of the industry
ooald ever even have contemplated. I shall endeavour to point out roundly the
consequences of the operation of some of the most important clauses in the present
liauor Law, brought about entirely by the said agitation of the mining community,
ana after having stated the various grievances in connection therewith, I shall take
the liberty of offering a few suggestions for the improvement of le^lation on this
salgect, and especially with reference to its relations to mining interests and to the
commtmity at large. Article 3 provides that — ** No licence for the sale of spiiituous Artioiesof uw
Uquors by retail or wholesale i^all be granted except in established and acknow- ^^^^^^
leaded towns, villages, and diggings under Government control" This provision,
which means the abolition of alfroadside hotels, was agreed upon by the hon. Second ^^|^{^n o'
Volksraad, and upon strong opposition being shown by a large number of the popula- ^^^

tion, the operation of the clause was suspend^ until next month, when it must come into
force. It is hardly necessary for me to point out how severely the operation of this Article s^oto of article
will affect the interests of many burghers and others throughout the Republic who are
either proprietors or tenants of such establishments, as well as the great inconvenience
that will be occasioned to the travelling public. The non-existence of convenient
accommodation along the various roads of the country must also be specially and
SOTOnsly felt by those members of the mining community employed in prospecting,
etc I shall now, with your permission, make reference to two of the most important
clauses in the law so far as the mining interests are concerned, namely. Articles 5 and Artidtts and e
6, which prohibit the sale or pft of any kind of liquor to any coloured persons. This <^^^*^»^8^
does not only apply to natives, but to other coloured races, including Colonials, among ^^Jjjjjjg?**' ***
whom will D6 found many honest tradesmen, and in fact many well-to-do people. I toiia. ^'^
hope to be able to show you that those governing the mining interests were nardly
sincere in their agitation for the passing of the measure, and that they did not
exhaust the means at their commana for lessening the evils they complain of before
being instrumental in obtaining legislation which will bring disastrous consequences
with it It was the mining people themselves who encouraged the sale of liquor to
natives, powerfully assisted by those in their employment. In order to place the
matter dearly before you, I hope your hon. body will permit me to give a slight
retu/md of the liquor agitation. For some considerable period it was found that
natives were illegally served with adulterated and injurious liquor, especially by un-
principled and unlicensed dealers, and from time to time my association made strong
representations to the Licensing Board not to increase '' kleurling licences," and even KiewrUng ucen-
mA to erant any new licences in town unless actually required for the convenience of *^
the public. Then, again, for a long time past, extremists have agitated for the
revision of the Liquor Laws, and, for a considerable curtailment of b'cences generally.
All these culminated in a resolution of the hon. the Second Volksraad on the 5th
September, 1895 (Minutes, page 645, Article 1571). See Dutch copy enclosed, trans-
lation as follows : " The Second Volksraad, having regard to the report of the Com- Appointment of
mission appointed by Art. 49 of 13th May, to take the Liquor Law under revision, ^^fSl^^to
resolves to refer all petitions and documents in reference thereto to the hon. the J*?"®' ^l]
Government, with instructions to appoint a Commission of Enquiry during the recess, isw. '
with a view to investigate the liquor traffic in the S.A.R, to consider the various
petitions, to obtain information, take evidence, and to draw up as soon as possible a
complete and adequate new law ; and, further, to publish same for treatment by the
hon. the Second Volksraad. The Volksraad further resolves that the said Commission

shall have the power to summon witnesses if necessary, and to give memorialists copy ^^^^ ^
of this resolution." Unfortunately, owing to the late crisis, the Commission appointed nSSiZmoi
eonsisting of the Criminal Landdrost of Johannesburg, the State Attorney, and the q!^q£2iLn'.

com*
en-

350 Mr« & Footers Evidence* v

LanddrcMBt of Pretoria, did not oommenoe its labours till about May, 1896, and the law
in question was never published in accordance with above resolution, the people at
large being therefore debarred from considering the same. The Commission aat at
Pretoria for only one week or two, and I venture to submit that it was impossible in
so short a time to investigate to the full extent all matters in connection with this
important branch of commerce as intended by the Volksraad resolution. I wish now
to point to the practical encouragement given by the mining communitv, as well as by
2loo!i ^nSi' ^te employees, in the sale of liquor to natives. It is a well known fact that manv
ingcompuiet. concessious for the sale of strong drink have been granted by mining companiea It
is difficult for many obvious reasons to give accurate details in all instancea In many
cases tenders were publicly called for in the newspapers for the right to supfdy
natives, and the following are a few examplea When Mr. Cowie's right to sell liquors
on the Geldenhuis Estate had expired (for which, by. the way, he paid the company £80
per month), advertisements appeared asking for new tenders, and Messrs. Sack and
Lediker were successful in obtaming these privileges from the company on lease at the
rate of £1,800 per annum. In the case of the ^Tew Croesus Gold Mining Company,
Limited, Mr. F. W. Smith got the preference at a rental of £1,500 per annum, witn ibe
proviso that he should buud suitable premises, which cost about £1,500. Then on the
New Primrose a similar concession was granted on payment of £1,200 per annum.
Other instances could perhaps have been given, if the lessees were not so reticent in
^«S*iindttJe P^^S details. Then, again, considerable impetus was given to unnecessary drinking by
liquor ques* employees engaged in the mining industry, and notably so by some compound managera
°°' Last year, when I had the honour of interviewing the Government on the matter, I plaoed

in their hands a number of permits for the purchase of quantities of liquor signed by
compound managers, and which are doubtless in their possession. Of course it is mort
difficult to prove conclusively the guilty knowledge of contravention of the liquor laws
by the white employees of various companies, because it is impossible to obtain any
assistance from those in league with them. It would, however, be interesting to quote
two or three instances which have been publicly reported and which I think you vrill
consider somewhat bear out my statement I see a report in the Star of the 10th
April, 1896, headed " 15 gallons of brandy." It was a case wherein seven native^
policemen employed at the City and Suburban Gold Mining Company, Limited, were
brought before Mr. Van den Berg, charged with being in possession of 15 gallons of
brandy. Mr. Clarke, the compound manager, gave evidence for the defence,, and stated
that he depended on the prisoners to keep order in the compound. The Landdroat
stated that he was surprised there was no union amongst the managers on the Band
The accused were discharged. A little time since a white employee on the Rip Gold
Mining Company, Limited, was fined £50 for supplying natives with liquor, and on the
30th April last, W. R. Polithon, described in the Star as the compound manager of the
Pioneer Gold Mining Company, Limited, was fined £75 for selling liquor to a native^
I further learn that an employee of the Oceana Coal Company, Limited, in the district
of Heidelberg, was likewise fined for the sale of liquor to natives on the 12th inst I
beg to produce a few permits, signed by a compound manager in his capacity as such,
for the supply of liquor. It is true that the quantities asked for are small, but the fact
remains. I am aware that, unfortunately, illicit trade is rampant, and that many
witnesses before your honourable Commission have declared that the illegal traffie
emanates chiefly from unlicensed dealers, such as stores and kaffir eating houses within
the precincts of the mines, and I can assure you that no one regrets this state of affftin
more than the respectable licensed victuallers, especially when one sees that the poUw
seem powerless to discover the origin of this unlawful traffic ; and while on this subject
I must again state that it appears to me that compound managers do not use their beflfc

Mr. S. Footers EvidMce;. 351

•efforts to Bunpress this excessive and injurious drinking. It has been stated that ^reat

<}Qantities ot liquor find their way into the compounds, and I should say dihgent

execution of the compound manager's duties on going his rounds, at certain periocb of

ihe day and evening, should lead him to discover the existence of such liquor. I am

•somewhat borne out in this contention by a remark that fell from the criminal land-

drost^ Mr. Van den Berg, on the 23rd July, 1896, where, in a case emanating from

liquor before him, he stated that the compound managers were responsible for rows

ending in death very frequently, as they aid not suflSciently supervise the compounds

•at night. It has oeen urged that the existence of canteens along the reef have »«©' M°£Sr"*

facilitated the thefts of gold. Messrs. Sack and Finestone, canteen-keepers, along the *" *** ^

New Primrose Gold Mining Company,Limited, were actually instrumental in tracing and

- obtaining a conviction for gold thefts from the company. I beg most respectfully and

hnmUy to submit that the introduction of total prohibition to natives has defeated its Total prohibi*

- own object. It is clear that there exists more illegal traffic than ever, and it is only ineff^Stive?^**
by regulating the system upon a thoroughly sound basis that this illegal trade can be

put a stop to. I would like to be permitted to point out to you that the Liquor Laws

- of the United Kingdom are perhaps the most severe, and yet it has been conclusively
proved that the more stringent the prohibition introduced the greater the secret

• drinking and the more huge the illicit traffic. Elspecially was this the case in Wales, ^oui ^ p^ww-
where prohibition was introduced on a large scale, and it was afterwards discovered and Scotland.
that there were in existence more shebeens than there were ever licensed houses pre-
viously. Without desiring to cast any reflection upon our Scottish brethren, it is
pretty well known that, notwithstanding the Sunday restrictions, liquor in Scotland

- on thiat day is easily obtainable, to say the least of it. I mention all this to prove the
futility of so-called prohibition. But that I do not desire to occupy your time at any
too great a length, I could give you many more logical proofs. Still, however, the
liquor question generally is of such vast importance that I may claim your indulgence
for occupying your time longer than I had desired ; but I would just like to draw

. your attention to the fact that in Holland, Belgium, France, Germany, Italy, etc, ^o^o?'iiS^
where huge industries exist, and where the liquor trade is comparatively free, much {JSdfBSgi^"
less drunkenness is visible than in countries where the severest restrictions obtain. Fnmce, oer-
In order to make the working of the prohibition more complete in this State, Article g^l^^J^ofar^.
16 was introduced, which enacts that the granting of licences for the sale of any kind ticie le. iaw
of liquor on any ground given out as a claim, mijnpacht, bewaarplaats, etc, etc., is ^^* ^®^
totally prohibited. Under this law fall some excellent hotels in districts where
hundreds of white men are employed, and in all these places food is supplied to the
mine workers at a price leaving little or no profit. These establishments are supplied
with reading-rooms, billiard-rooms, etc, and the operation of this clause means the aboli-
tion of all conveniences to the detriment of the working men, who, requiring their
wants fulfilled, would leave the works, not only to obtain their glass of beer, but in
search of social intercourse and recreation, now to be denied them. The effect of this
measure will not only be felt in the district of Johannesburg, but also in the important

• districts of Boksburg, Klerksdorp, Krugersdorp, Heidelberg, Lydenburg, etc. The
further disastrous effects of the working of this article will bring about the demolition
of valuable premises and good-wills, and the throwing out of employment of many
thousands of people. I now beg to draw your attention to Article 17, which provides ^f^; ^*^
for the number of licences in proportion to the white male adult population. Now,

the number in the Johannesburg district alone is about as follows : — (a) Wholesale, johannesbarg
4»;(b) bottle-stores, 66; (c) retwl, 305; (d) roadside, 3; beerhalls, 23— total, 436. SJSSL"'"'**'
TThe revenue from licences and billiards may be taken approximately, in this jurisdic-

• tkm alone, to amount to not far short of £40,000. It has been computed that in order

352 Mr. S. Foote's Evidence.

to give effect to Article 17 about 70 licences in all cotdd be* granted. Seeing that th»>
above totals include about 112 hotels, 56 bottlenstores, 27 restaurants, 49 wholesale
houses, considerable difficulty must ensue in apportioning these licences. And further,,
the effect of the operation of this clause woula occasion much suffering, in fact ruia
and bankruptcy, to an extent not easily contemplated. In Johannesburg alone, I
believe, the losses in the forfeiture of stocks, good-wills, and decrease in value of
buildings would reach, I may say, millions, and to whom are the sufferers to look
for compensation? I would further deem it my duty to point out to you.

^^' JSd thi *^**^ the enforcement of this Liquor Law 17, 1896, would affect the revenue

suto revenue, of the couutry to a serious extent. The general revenue of Customs for thet

past six years has been as follows : — 1892, £441,436; 1893, £692,831; 1894,.

contrt^tion^^ £812,173; 1895, £1,085,419; 1896, £1,355,486. I mav say that at least one-

sSoTrevenue. third of the whole of these customs receipts is contributed bv the liquor trade, and a.

huge reduction of that income would have to be made good from other Bource& It

Knjr^^rtoro« would Drobably interest you to know the total of customs and excise duties derived

dse^utiee for from the manufacture and sale of alcoholic liquors in England during 1896. The

^"^' amount is £30,886,129, being 32*62 of the total exchequer receipts for that year, and

this does not include local taxation, such as licence money, etc. The example set in;

England, where, as I have alre€uly stated, the law is very severe, may possibly be some

EngUah royal TOidaucc in the framing of the new legislation. In that country a Koyal Commissioni
iiJ[SSft[|?s.**° has been sitting for nearly two years to thoroughly investigate the liquor laws in
every town ana village, and its effect upon the morals and intelligence oi the people.
The latest report gives a resurai of the evidence of Captain Nott Bower, Chief Constable of
LiverpooI,one of the most important shipping ports in the world. This officer,a gentlemen
who is believed to be a great authority, states, among other things, that a large proportion

^IndCTSne"^'' of the crimcs of violence were due to drunkenness, but by no means all ; ana the sama^
applied to cases of neglect of children ; but, when they came to cases of house-breaking-:
and larceny, or what may be called professional crimes, they were rarely due to drink ;2
in fact the professional criminal must almost necessarily be an abstemious person ; he^
could not possibly carry on his trade if he were not Offences of indecency were veijiB
seldom due to drink, and as to embezzlement, forgery, and crimes of thai character-
drunkenness was veiy often the result of crime, rather than crime the result o"^
drink. It was said in some quarters, and often said, that if there was n^c:
drunkenness there could be no crime, but he did not think that was correct. Factor-*
in the decrease of drunkenness were the demolition of insanitary property ; increas^^
facilities for football and cycling ; the general improvement in the tone of the working
classes, and the doing awav with unlicensed drinking places. I earnestly hope that jf

''l£d ^h *"*? ° ™^y ^^^ ^ deemed as desirous to advocate anything that can in the le€wt be construed
ing industo ." as auta^uistic to the mining industry. On the contrary, I should esteem it a privilege
to be afiowed, in my humble capacity, to render every assistance in removing any im-
pediment to the progress of that industry ; but I cannot refrain from contrasting the
opinions expressed by so important an authority as Captain Nott Bower with the
action of Mr. J. B. Bobinson in his orders prohibiting men on Randfontein from in-
dulging in those very manly sports which are recommended by the captain as a special
means for the prevention of drunkenness. Prohibition in anv direction, as well as undue
interference with the liberty of the subject,always creates ill feeling and revolt I venture
further to submit that a great deal of this agitation in reference to the liquor traffic hae
been greatly accelerated by the desire to intr^uce the compound system. This measure
was advocated especially by Mr. George Farrar,when he suggested at the Simmer and Jack
that Mr. Rhodes had offered to build a second Eenilworth K>r the men, and subsequently
emphasised this at a meeting of the Mine Managers' Association. I may here mention

Mr. 8. Poote's Evidence. 858

that I am more than surprised at the attitude of the Mercantile Association, especially ^,g'' MmS^
as all branches of legitimate commerce should work side by side. Seeing that it has ^« J^^^
been generally acknowledged that a huge illicit traffic emanates from the storekeepers uquortnde,
and kaffir eating-houses along the reef, it is astonishing that, if that body is so sincere
in its desire to deviate the troubles of the mining community, that the Association
did not advocate the removal of all stores as weU as canteens from the immediate
neighbourhood of the mines. From this side of Erugersdorp to the border of Boks- outeenson the
burg, a distance of over 30 miles, only 17 licensed canteens, including well-appointed '^^
hotels, exist along the line of reef, and surely these 17 licensed houses can hardly be
held responsible for the huge illegal traffic now extant In view of the suggestions I
should venture to make, I would say that at the time I had the honour of appearing
before the Commission at Pretoria, in May, 1896, referred to in the earlier propowis for
part of this statement, Mr. Jas. Hay, Chairman of the Chamber of Mines, and tTJcT'^^i^Sor
1, had practically oflFered similar proposals, especially with reference to the JhS*SSmi^
kaffir liquor traffic. Mr. Hay then contended that the native will, and should have sion of enquiry
his drink, but that it should only be meted out to him in State defined and stamped question, £y'
meafiures, but that the toleration of drunkenness, the supply of liquor in any quantity ^^^
for consumption off the premises, or sale of adulterated or injurious stuff, should be
punished in the severest possible form, and I am bold enough to believe, without pre-
suming to dictate to the mining community, that, so far as natives are concerned,
that method, combined with honest supervision, is the one most likely to prove
efficient. In conclusion, I earnestly trust that your honourable Commission will pardon
the length of this statement. There are many more minor details in connection with
flie Liquor Law generally which are open to improvement, but with which I will not
now trouble you. Let me assure you that it is my earnest desire to be permitted to
co-operate with the mining community and the authorities in bringing about such
changes and improvements as shall tend to the alleviation of the grievances of the

Sid mdustry, and especiallv to contribute to the comfort, welfare and happiness of
d mine workera The following are just a few suggestions that I respectfully sub- sugyeetions for
mit for your earnest consideration : — tuS^ofTSSwr

(1) That every applicant for a liquor licence must be armed with a certificate ti»fflo.
of good character, countersigned by the higher officials.

(2) That the house for which the licence is asked must be of a certain
normal value, and have proper sanitary arrangements.

(3) That the house, ana not the man, be licensed. This would obviate the
possibility of underhand transfers. This, and the previous conditions, would be
the best security for good and lawful conduct, as loss of licence upon contraven-
tion would mean enormous decrease in the value of the property.

(4) Improved and efficient police supervision, and tne abolition of any shai-e
of the fines. This system places a premium upon crime and often imposes hard-
ship upon men, who, perhaps, had no desire to contravene the law.

(5) Proper and equal administration of the law, and the carrying out thereof
to be enforced upon cUl licensed dealers. It is the larger and more important
houses that should set an example of obedience to the law.

(6) Thorough supervision of the quality of liquors, under severe penalties for
the sale of adulterated or deleterious stuff.

(7) A firm licensing board.

(8) Imprisonment only on conviction of unlicensed dealers.

(9) That natives be allowed to obtain, under strict regulations, a certain
quantity of sound liquor, to be served in a stamped State measure, under severest
penalties for serving larger quantities than prescribed by law, the toleration of

354 Mr. S. Footers Evldcn<:e;

drunkenness, or the sale of any quantity no matter how small, for oonsumption
off thd^ premisea I may mention that if the native wages be reduced as pro-
posed, it will leave very little mar^n for excessive drinking.

(10) Thorough supervision of the stores in the vicinity of the mines, and
improvement in the general condition of the eating-houses, for which lioeooes
should only be granted to responsible and respectable men.

(11) The abolition of all licensed insanitary shanties.

In my humble opinion, if these conditions were acted upon, Articles 3, 5, 6, 16 and
17 might well be deleted, and I venture to believe that the Idquor Law, with some
minor but still important additions would be workable, and ultimately give satisfaction
all round, while the irresponsible illegal licensed dealer would soon oe weeded out.

Mr. S. Foote on examination said :

ia ^^taS** . ■'■ .^^^^ ^^^^ ^ ^^y * ^^^ words more with reference to Articles 16 and 17,

e. gjygjj jjj ^y statement. With reference to my statement, I would like to point out
several thin^ in the Liquor Law as it stands. The huge vested intei-ests in coonee*
tion with this trade amount to immense sums. Take, for example, the wholesale
houses here are perhaps the largest in the trade in South Africa, when I tell you that
the duties paid hy Messrs. Rolfes, Nebel amounted to something like £110,000 for the
year. Their business and stock is about a third of a million oi money. These whole-
sale houses labour under considerable difficulty on account of having to apply for their
licences every quarter, and not alone is it a very great and serious inconvenience, it
may be considered that it is almost unfair to these firms that have such large vested
interests. Of course I do not advocate the cause of Messrs. Eolfes, Nebel alone. I
only give them for example ; the other firms are in the same position, and therefore I
woula like to suggest that this Commission would be kind enough to consider in their
Wholesale and report the advisability of recommending to the Government that these wholesale licences
^2S5! should be considered as commercial licences. Further, I should prefer to say noticing

until you have examined me.

Mr. de Beer.

Mineoffldaisand You Say here that the mine managers — that is mining people — encourage the sale
tonati'vesl*"**' ^f Hquor to natives ? — Yes. In the first place, on many occasions when the Licensing
Board sat there had appeared very many recommendations from mine manage:
advocating the sale of liquor. Then again on many occasions, as I have shown in
statement, advertisements have appeared in the papers calling for tenders for th
right to sell liquor to natives on certain mines, and in each of these instances th^
successful tenderer had to pay a very large amount of rental for the preferential
right. I have given you several instances in my statement, and I think that is diree^
encouragement for the sale of liquor, actuated by the mine people themselvea

<2uauty of uouor You Say that natives are supplied with bad and spurious liquor. Do you know
aoid to natives ^^^^e it comcs from ? — The largest amount of liquor, as far as impoi*tations are con-
cerned, comes from Delagoa Bay. Whether that liquor ;was originally injurious and
deleterious, I am not prepared to say. No doubt in many instances that liquor
was seriously adulterated. At present the enormous sale of so-called whisky amon^
kaffirs is, of course, illicitly sold. You would be surprised at the enormous quantities

i^uantity and which are ou the market This so-called whisky is sold to-day at 13s. 6d. per case of
£)i?tona3?e8 12 bottles. There are about 13,000 cases a month sold.

Importation of The Houor vou mcutiou is usually called Delagfoa spirit ? — It is made of the spirit

liquor sold to ^ui^n • * i. / £ n

native*. chiefly imported from Germany.

Originally made in Germany from potatoes ? — The liquor comes from Dela^
Bav, without tax, as a product of Portugal. That whisky was brought in at 96 per

Mr. S. Poote's Bvidence. 355

eent. strength, and reduced here to half, and adulterated and mixed up, and sold in
botUes at 13& 6d. per case.

Have you also included licences for billiards ? — I have not. They were difficult Buuani i
to obtain in Pretoria.

You speak about canteens on the mines ; that is a ^eat grievance for the trade.
I think there are only 70 licensed houses on the whole hue.— What I wished to show, Numb«r
as appeared in my statement, the 17 who have fallen under the Article 17, can hardly ^^^
be held entirely responsible for all the illicit traffic going on. You will find from the contriv*
Ist January to the 25th May, that four-fifths of the convictions for contravention of reS!**'
the liquor law emanated from individual illicit-dealers, unlicensed men, and keepers of
stores and kaffir eating-houses.

According to the evidence put before the Commission, the greatest evil is the Kainr
kaffir eating-house ? — ^There is no doubt about it. With reference to the eating- **®°^
houses, I may at once tell you that I was approached by an official of the Sanitary
Board on the same question, and I considered then, as I do now, that the supervision
should be placed in the hands of the Licensing Board ; that in each case the applicant
should satisfy the Board, either by writing or otherwise, that he is a respectable man,
and convince the Board that his house is of normal value, properly situated, and that
he should enter into a bail bond for the legal performance of his business, and, in the
event of any illicit traffic, so far as liquor is concerned his bail is forfeited.

Mr. Brakhan,

In your statement you have thrown out various insinuations that the mining
companies were furthering the sale of liquor ? — I have done so.

Can you teU me or do you know the exact terms of the lease entered intooewenh
between the Geldenhuis Estate and Cowie ? — I do not know the details of the con- ^^^JJ
tract, but as I understand, their lease has still one year and a half to run.

You are wrong there. The lease has expired. This lease you have left out is
very important in the details. The lease provides that no native should be served
without a written authority of the manager, and this proves clearly that the company
was desirous of having the control over the sale of liquor to natives ; in other words,
to limit it ? — That means that they must have given a large number of permits to
kaffirs, as he would not be prepared to pay £150 a month. I speak of the Cowie
lease.

He has not got it now ? — He had it.

Yes. He paid for the first year, £30 per month ; for the second year, £430 ;
and £500 for the last year ; and that is much less than £80 per month. — The next
party undertook to pay £150 per month.

The company is not desirous of having this lease, as will appear from the follow-
ing : Mr. Sacke had to pay £1,800 a year. The company had reduced this to half the
amount since the sale of liquor to natives has been prohibited. The terms of the
lease empower the company to take the whole from Mr. Sacke. That is clear proof
that the company does not want the lease for the sole object of making money. I
think the terms of the lease are so stringent that the contract could have been can-
celled any moment if the lessee did not comply with the terms of the agreement. — I
can only say that, in that particular case, the company was extremely lenient and
kind to the man.

What reason have you for saying that ? — You yourself state that the company,
seeing that since the 1st January a considerable amount of trade must fall ofi* on the
Oeldenhuis Estate, were very kind, when they could enforce £1,800 a year, to reduce
that by a half.

e
i

8S6 Mr. S. Poote*8 Evidence.

It was not a matter of enforcing ; it was in terms of the contract. — £ understand
you to say they had reduced the amount ; therefore, it was very kind of them» under
the circumstances.

Then that proves their wish was not that of making money ? — Well, I think
£1,800 to sell only to whites on the property is very high.

It was not only for that. It was for a kaffir eating-house, hotel and boarding*
house. Tou hinted in the same statement with regard to a certain company — ^I
suppose you do not want the name mentioned ? — No ; I think it better not.
Permfu of com- You mentioned permits being brought to some canteen. For what purpose wi

Spra^to"pur' this Uquor used, do you think ? — In my opinion, I have no hesitation in saying
^ase liquor, ^j^ must havc bccn drink required for nativea

Still, I have enquired into this matter, and I find some of these things must havi
Foiled peniiiu. bccu forgerfea There are, for instance, on certain days, permits signed b v a c
man as compound manager. That man has never been in the employ of the
pany, and the compoimd manager is quite a different man. — I shall be pleased to
you privately the name of the individual from whom I received those permits,
my object in putting them before you was not with a desire to injure any man,
knowing and feeling convinced in my own mind that in a great many instances
pound managers were instrumental in the purchase of liquor for natives, and thaU7<
IS extremely difficult to obtain absolute proof, even as it is difficult for you to obt^^
proof of your gold thefts. I thought when those permits were offered to me tl^^p.
mi£;ht, if genuine — I never dreamt for one moment they would not be genuine ^
assist me and you in getting at the bottom of this illicit traffic.

I don't want to insinuate that those permits were handed in not bona fide, hot
enquiries have proved they are not right, because on many of the names given on
those permits the initials are wrong, or the individuals are not in the employ of the
company. — I shall be very pleased to give you every facility to get at the bottom of
it, and shall take the earliest opportunity to £auge the thing for myself.
Mine director- You meutiou that compound managers have been instrumental in selling liquor
Mk o? liquor to natives. I don't deny that might have been the case, and perhaps is yet the ease, I ti
to nativea. ^ynt that docs not prove that the directors of the companies would further, or were I

cognisant of any such fact In fact, the directors would be pleased if they could 8®' I »^
iniormation about it, and I should guarantee that those compound managers, or other ■
servants of the company, would be at once dismissed, because the directors, bc0
personal supervision, found out that if the natives do not get any liquor at all — good, I j
bad, or indifferent, whatever it may be — the amount of labour they can get out of
them, and the discipline is far better than if they were supplied with liquor. AlflOi
their own physique and health is greatly improved. If, formerly, the opinion might
have been that the kaffir must have his liquor, yet, from experience, that opinion has l^^jv
been altered, and that is just where the mining industry insists that the Liquor li^w
should not be altered, so that kaffirs should not have any chance whatever to get
liquor. Can you inform me if Mr. John Judellsohn is a member of the licenfled
Victuallers* Association? — He was, but he is not now a contributing member. |^^ ^

He has resigned then ? — He is not a contributing member. He failed to pay tSft
and is no longer a member.

But he was a member ? — Yes, originally.

I want to draw attention to the manner in which matters about licences sometinMB

License of Old are managed. There is a certain Old Park Bar in Jeppestown. The man whohadtfi

jepp^towLV' bar, or, perhaps still has it, has been convicted for contravention of the law in ibft

1896, and January, 1897, and since then has been several times trapped, but no oonvtf*

tion could be got At the December sitting of the Licensing Uommission, a

Mr. S. Footers Evidence. 867

ybBon, was refused a licence. At the March sitting, another man, who is connected
Lth Mr. Cotson, applied for the licence for the same place, but was also refused. Now,
r. Judellsohn, on the 3rd April, 1897, acquired a transfer of the licence from Mr. H.
Gordon, of a certain bar m Alexander Street, Ferreirasdorp, and this was at once
msf erred to the Old Park Bar. This shows how the ramifications of licences are
inaged. — I know the circumstances full well In the first place, I should like to tell
n that even if a man is a member of the association, I should never try to defend him
any shape or form against an improper action. This question of this transfer is not Tmnsferof uccn-
ly a question of this mdividual transfer, but it opens up a much wider field. I have ^'
er and over again protested against these interim transter& If you will look to the
ird suggestion in my statement, you will see I there said that the licensing of the
ase would obviate anything of the kind again. According to the present bw, the
airman of the Licensing Bo^rd, in cases of unforeseen circumstances, such as fire, etc.,
8 the right to transfer, ad interim^ any licence from place to place, subject to con-
mation oy the Board at its next sitting. But, unfortunately, these transfers have
en granted from time to time, and not with the wish or countenance of the most
ipectable dealers of the Licensed Victuallers' Association.

I am very pleased to hear you, as charman of the Association, with the full
pport of the other members, advocate this alteration. It brings out my desire that
eliands of the Licensing Commission should be strengthened in order to bring about
is alteration, because if a certain canteen, or a certam man who holds a canteen, is
nvicted continually or several times, and yet is able to carry on this trade, then it is
gh time an alteration in this law should be made.

Mr, de Beer.

These are not facts you have stated, Mr. Brakhan.

Mr. BraJchan.

They are facts.

Mr. de Beer.

What you quote are not facts.

Mr. Brakhan.

I received them for facta

Mr. de Beer.

When you say people have been convicted repeatedly, and can still get licences,
'ou are wrong.

Mr. Brakhan.

I beg pardon. That was a slip of the tongue. I mean they are able to get trans-
ir of licences. Of course, this licence which he now holds by transfer is subject to
infirmation by the next licensing Board, and I have no doubt this licence will not be
nfirmed.

[Addressing witneea]. Now with regard to one point in the suggestion you make. Punishments for
ion't (|uite see why you suggest in No. 8 that imprisonment should only take place uSiiJ^sed"}?-
I conviction of unlicensed dealers. — I don't know whether you quite understand, quordcaien.
hat I mean to convey is this : I sav imprisonment only. I don't mean imprisonment
oold be inflicted upon unlicensed dealers only. I mean imprisonment only. That
oold be the only punishment

358 Mr. S. Footers Evidence

Why not also for licensed dealers ? — ^That is easily answered. In the first place
yon mnst bear in mind the majority of licensed victuallers are men who have been
established for many years in this country, and who have large vested interests in
their stocks, building, and goodwills. I do not say that a continuance of infringe-
ment of the law shall not be followed by punishment by imprisonment, but if you will
take notice of my proposition that the house shall be licensed and not the man, and
that after one or two convictions that that man will lose his licence and the value of
his house and the value of his good-will, then I consider that that man is sufficiently
punished. Then, again, that man contributed, and is contributing largely to the
revenue of the State for years, whereas the unlicensed man is an illegal dealer, who
defrauds the Government of its just duea Then, again, I would like to point out this :
you have probably no idea of this so-called trapping system in vogue. Of course,
you have heard of these cases and you read of them, and you see remarkable punish-
ments meted out, but the licensed victualler must be protected against this wholesale
trapping, because I undertake to say that the very largest and most important housefl
in the liquor trade, including even the largest wholesale houses, can be as easily
trapped as the small canteen keeper who serves to the kaffir. And we have had very
many instances of that nature, and I consider, therefore, that the man who has vested
interests in his trade should have a certain amount of protection, and not be open tc
that awful drastic punishment the same as the man who defrauds the State of its jns4
dues.

There might be another view of that. A man in whom the Government placet
trust, which it really does by conferring on him a licence, ought all the more to be
jealous of this trust, and punished for betraying it. — Exactly, but I don't think that
that man should be so severely punished, because if you give that man a certain trust
and repose confidence in him, 1 venture to think, and it has been proved in other
parts of the world, that the respectable licence-holder, with interests at stake, will be
the best possible detective for the prevention of the contravention of the Liquor Laws
generally, and you must not give too rauch latitude to the officials to ensnare these

The trapping people into the commission oi crime. That is all that the trapping system means
iyttem. to-day. I have seen instances where large hotels here — it is not necessary to give tiie

names, but I can give them to you privately — two of the largest hotels in Johannes-
burg— have been ensnared into the commission of a crime by the trapping system, and
not long since. I should say the combined value of their two properties would be
over £100,000. These people being ensnared into the commission of this crime, I
think it would be very unfair that men of such position should be subject to imprison-
ment.

I suppose it is a case, as you put it, of ensnaring people ; in that case the magis-
trate would not bring about any conviction. — I am sorry to think you perhaps have
little knowledge — and perhaps you ought to be pleased of it — with the method
adopted in the Criminal Landdrost s Court, or else you would not have made that
remark.

stamped Uquor Now, you Say uativcs should be allowed under certain restrictions to be supplied

mSJSi!* '^' with a certain State measure, a stamped measure. How can you prevent that kaflBr

from returning again with a measure he might get from somewhere else, and getting*

third or fourth dose ? — It is possible I have not made myself clear. First of all,

everything will depend upon the quality of the people to whom the licence should be

f ranted. For that purpose I have made certain recommendations earlier in mf
.. „. .. eclarations. I should like to go further by suggesting that the security bond for tto

KSL^**"^'^ due performance and the legal performance of business on the premises where a kaffir
may get liquor should be increased to about £1,000. Then, coming back to yoor

Mr. ^. Footers Evidenc^^ 359

• ........

oiiestion, my suggestion waa intended to convey this : that the houses which are stamped uquor
licensed to sell to kaffirs shall be supplied with State stamped measures, that these ^SSUST '^"^
measures should be under the supervision of an Inspector of Weights and Measures,
tiiat in the event of any measure not being quite perfect the owner should be
pmiished The kaffir should not, under that regulation, be allowed to come with a
measure at alL He goes to the house and caUs for his liquor, which should be meted
out to him in that Stote measure.

Yes, and then he goes and gets another lot — Tes ; I am coming to that directly.
The quality of that liquor should be thoroughly supervised by excise officers, and that
aQy mJEUi who gave more than measure— that is to say, he might give it in a larger
j^aBs for sake of competition — shall forfeit his licence and lose his surety bond. With
reference to another lot which you have mentioned, that could be easily controlled by
^e mine mana^ment itself.

It is hardly possible for a mine manager to run after every kaffir, you know.
When they are off shift kaffirs go about as they like. There is, unfortunately, no
compound system here. — It has not been difficult in the past to get as many permits
aa were required. Under a regulation of this nature, I don't say my suggestion is an
entirely perfect one, but I certainly believe that it would be beneficial to all parties
ooncemea. Tou must bear in mind this, and I am really sorry to say it, that the
good people to-day are suffering very severely on account of the bad. The illicit
traffic to-day is larger than it has ever been. It is a fact that nearly 10,000 cases of Extent of uuoit
whisky were sold laat month. This means 120,000 bottles. Say that the average "^"**'^*^*^-
price at which it was sold was 5s., the product was £30,000. I want to point out to
yoQ that the Mercantile Association strongly favoured the movement oi the mining The Joiuuiiies<
industry in regard to the liquor business. They were afraid, and perhaps justly so, ^^ JISSu-
that if the kaffir could get his liquor ad lib, the storekeeper would materially suffer ; tion uui the
ttkd,on the other hand, that the abolition of drink would improve their business "^"**' ***"*'
Jliaterially. Now, it was only last week that I was in communication with one of the
ixuportant members of the Mercantile Association, and what do we find ? That the
shopkeepers' returns to-day are very much less than hitherto. I say, therefore, if you
Owe further restrictions that there will be a &;reater illicit sale of liquor, and that the
luffiis will pay not 5s., but, on account of the risk these people run, 10a, and the
ttorekeeper will have nothing at all left.

But if imprisonment was made the punishment for an infringement of the law possibility of
this illicit traffic would soon be put a stop to. — I don't think you will thoroughly root fui t%quSr
Wit the illicit titiffic. In every part of the world the greater the restriction in any to»»c.
Section the greater the illicit trade. It has been proved very largely in England of
Iftte years, where the liquor laws are perhaps more severe than in any part of the
^orld. In certain parts of Wales was introduced what was practically total pro-
hibition, and very shortly after that they found there were more illicit dealers tnan
tti«:e had been licensed housea

I don't think we can draw a parallel between Wales and this case. There are, so
to speak, no aboriginal races in England. — ^I will give you an illustration nearer
Wie. In the Orange Free State there is supposed to exist total prohibition. In
1895 there was imported into the Transvaal Republic something like 180,000 gallons
of Cape kaffir brandy. In the same year there was imported into the Orange Free
State— which is, of course, a much smaller country than this, and has a much smaller
peculation — something like 130,000 gallons.

I don't think that is any proof of your contention. — I will go nearer, then. In
I^ttal there is a prohibitive law. Of course there is no labour required there. Tet it
^as only very recently that five of the most important hotels m Maritzburg were

360 Mr. S. Footers Evidence.

-^— — -^»^»^— ■— — ■^— ■ ■— ^— ■ ■ M^— —■——^— —————— ———IMl^'

convicted for having sold to natives, and the magistrate, in fining them, stated his
regret that he believed this illicit traffic had been going on for yeara I may tell yoa
that on appeal they won their case, and the conviction was qnaehed.

^S^^i^^ If this law is repealed we shall revert to the old state of affairs, and very litUe

aue. work could be got out of the kaffir& — I am quite of your opinion. But I don't think

that state of things would be brought about if the mining industry would exert

^^Jl^^^^y'u^ themselves to assist the honest licensed victualler to bring about a better state of
oenoedvictiui- things. There is no doubt that several people hold licences who never ought to have
held them. We cannot deny the fact that in many instances mine managers, or mine
employees, have encouraged, by recommendations and otherwise, the granting of
licences to certain people, and I think if you can accept a compromise of this nature^
and try for three months, I feel you would have less trouble with regard to illicit
traffic, and when the men to whom these licences are entrusted are under strong
securities, they will assist in the abolishing of this filthy illicit traffic now existing.

Mr. Alhvn

Tou are the chairman of the Transvaal Licensed Victuallers' Association ? — ^Ye&
The object of this Association is to protect their members, who are licensed.
victuallers ? — Not against illicit traffic.

I regret I cannot possibly ask you any questions on the subject at all, for youH
well advocate, in your capacity as chairman of this Association, that the law agamst^
serving natives with liquor should not be abolished as far as it concerns li<
victuarier& — Yes.
Tot»i prohibi- And my experience is that it should be abolished ; and that to supply nati .
liqoor to DA- with drink in fair measures or indiscriminately, as during the past eight years, i
tiveiadviwbie gimpiy ^ dark blot on humanity. I shall ever advocate the total abolition of the sal_^
of drink to natives. Tour duty as chairman of this Association dictates a differecs^
policy, therefore it is quite useless for me to ask you any questions on the subjeetb
It is quite true, as you say, that no matter what happens you can never reduce tbo
illicit traffic, but there is no law yet strong enough that has prevented men from
committing crime such as theft, murder, or any other crime. If the decision of the
Yolksraad be upheld that natives should not be served with strong drink, and no
matter how heavy the punishment of those who commit the crime, you will never be
able to stamp it out sQtogether, but that should not be the reason why the Baad
should not, in the interest of the industry, and for the welfare of the natives, be asked
to uphold their decision. — It is unnecessary to answer you, as it would only lead to a
controversy as to individual opinions There are, however, one or two things I would
like to mention. Of course, as you say, although you have severe laws, there aie
crimes which will always be committed. Still, in other countries where strong kws
are in existence, the system of improving^ matters is regulated by Act of Parliament
Vested nntemts But I would like to poiut out this to you. Assuming for the moment that you aie
ofUquortrade. j^gj^j. £j^ y^^j. contention as to the abolition of drink with reference to kaffir8,yoa
must not forget that the law, as it stands at present, is very far-reaching in its
calamitous result& Under Article 16 of the present law, it is provided that no man
shall be allowed to retain his licence on certain prohibited areas. Now it must be
borne in mind that the collective vested interests in these houses falling under Article
16 are really enormous, and not only would the people then according to joax
argument be deprived of selling to kaffirs, but also nrom following their business 80
far as the whites are concerned. I can assure you that the values sunk in properties
are very lar^e indeed, and most of these people have held their licences tor a ooD-
siderable penod of time.

Mr. S. Pbote's Evidence. S6i

I don't want to ask you any questions but you talk of these vested interests and
16 of them under the guise of respectability are not ashained to import the vilest of
ff they get from Delagoa Bay. You talk about their value, but what about the
ue of the interests of the mining industry here ? — If you had been here earlier vou
old have heard my opinion of this adulterated stuff. I maintain that these values
a matter which should be considered. I know some houses that have been offered,

EToperties, £9,000 and £10,000. The mining industry must be supported, and no
li-minded man would do anything that would hinder its process. But I say this,
t licence-holders, as subjects of this land, must have their tradmg liberties respected;
1, while giving the mining industry the whole of its due, I am positive that this
vemment will take into consideration the interests of the masses generally. When
poke about these laws I touched upon Article 16 ; but it must not be forgotten that
9 agitation brought about Article 17, which, I say, does not mean the abolition
i demolition of millions of poimds of vested interests. The property owners have vested interMti
I yet begun to feel the shoe pinch, but eventually, if this law comes into force, they SjjeSSd^Iwn!

I find the huse amount of rental they have lost A law of this nature — which, I ims.
itend, encroadies on the liberty of the subject — ia guarded against in the Qrondwet,

i I ask who is going to compensate these people for their losa

Chairman.

Do I understand from your evidence that the law does not apply equally to all unequal admin*
iused dealers ? — I am sorry to say, in my opinion, it does not. I have found very JSSrlSaw^' "*
ny instances where unlicensed dealers wilfully and illegally selling liquor to kaffma
whites in contravention of the law have been fined much less in a good many
tances than the licensed victualler who has been trapped in the commission of a
rht offence. Then, again, I mean that the officials take a great deal of trouble with
j smaller dealers and notel-keepers, and so forth, while the more important houses,
ich should set an example oi good conduct, are entirely left alone, and are fre-
mtly known — ^not, perhaps, intentionally — to break the law, perhaps in a higher
rree than some of tnose smaller men who are trapped.

That is almost a direct accusation against the officials that they have not been
dying the law properly. The judge decides each case according to the evidence. —
hould be very sorry to cast any reflection lipon any official in Johannesburg.

Your regret is too late, you have already done the evil. — I was going^to explain.

I understand you do not approve of the present Licensing Board ?— 1 might have xhe uoendng
de the inference, but I did not say so. Board

What is your idea with regard to the Licensing Board ? — I mean to say that the
^nsing Board should be resolute and firm, and should have under its control all
•tters in connection with licences. We have on many occasions seen that the
•ensing Board have been too lenient, and what is wanted is a resolute Board that

II carry out its duties, and only grant licences where necessary. My object in
ntioning this question of a firm Licensing Board was that I have, on one or two
sasions, protested very strongly against the granting or renewal of a number of
mces, and I have been met with the taunt that my protest was only entered on
$ount of trade jealousy, whereas, in fact, what we want to see is the trade in the
ifit respectable hands.

That is also a question of opinion, of course. That is another accusation against
s licensing Board. One always wants a change, but whether the change would be
r the better is another matter. Take this Board away, which is perhaps too kind
i too lenient^ and you may get another one in its stead which, perhaps, would be
» severe against you and too kind to somebody elsa Now, touching the case

362 Mr. W. R. Brown's Evidence.

generally, you are only dealing with large vested interests of licensed victuallers, and
vou have even gone so far as to make an appeal to the Qrondwet, which protects th»^
o<mpiu»tive to- liberty and possession of every individual. My view of the matter is this, that if the
qaor*^ min- general interests of the gold industry and the working power of the kaffir is sapped
log interMtB. g Hquor and inmred, the lesser interest must give way to the j?reater. It is an in*-
disputable fact uiat the liquor traffic saps the working power of the kaffir, so that it
is impossible to keep control over them. Ton want to protect the large dealers in
liquor, and you want to put the blame on the small retiailers, but it was not these
who imported the bad liquor, and the people whose chairman you are should watch
the importation of bad liquor.

Mr. Hay.

The commiflsion In your statement you refer to what took place in Pretoria in May, 1896. Ton
Sir** fiq uor wrotc that from memory ? — Will you kindly refer me to the point to which you allude.
qvMftion, M«y, «* J had the honour of appearing before the Commission in May, 1896, and Mr.
James Hay, the Chamber of Mines, and I, offered similar proposals, especially with
reference to the kaffir liquor traffic. Mr. Hay pointed out the kaffir should have his
drink, but it ought to be only meted out to him in State defined and stamped
measures." I don't think that is correct. I will state what took place. When I
appeared before the Commission I pointed out that the law, as it stood, was good if it
were carried out. The native was prohibited from getting drink, except with the
permission of his master. Therefore, if the master carried out his duty, he had the
regulation of the law in his hands. I then pointed out that in the law there ww a
certain anomaly; it provided that a native comd not be proceeded against if he had in
his possession half a bottle of brandv, and the consequence was this, that althongh
natives were found in possession of liquor they could not be prosecuted as l(»ig tt
they had not more than half a bottle, and by that means liquor was taken into the
compounds in considerable quantities, and evil arose. I suggested that that should
be expunged from the law. Mr. Van den Berg, who presided over that CommiSBion,
asked me whether I was in favour of total prcHiibition to natives, and I said yes, if it
could be properly carried out. Is not that what took place ? — ^It is only a question of
memory. I am certainly under the impression that you advocated what I said in my
declaration.

That is what took place.

Mr w. R. Mr. W. R Brown, representing Barberton Chamber of Mines, was called and

Brown's evi- j , tt • j

dence. Quly swom. He said :

I have little to add, gentlemen, to what has been said by the Johannesburg

Evidence of Jo- witnesses, as thcv have dealt with the various matters very thoroughly, and I, a»

witowJa?^'^ representing the De Eaap district, fully endorse what they have said. Dynamite «t

^'ndte^it'^SU^ Barberton costs £6 to £6 Is. per case, and the price has been recently raised 5a per

berton. casc, for which action we have received no satisfactory explanation. Mine managers

Qtudity of dyna- in my district were almost unanimous in stating that the quality of dynamite is not

^ equal to that of the early days, and consequently, in our hard ground, many of the

mines use blasting gelatine, which costs, delivered on the mines, £6 5s. Being so near

to the port we do not understand why we are charged a higher price for aynamite

than is paid by mines on the Rand. Miners complain bitterly of the manner in which

Accidents dynamite is packed. Many cartridges arrive so much out of shape that the mineia

SiSdrJof d5^ are compelled to cut the cartridges down the centre in order to get them into drill

**°^*^ holes, and this practice has resulted in many accidents. On the Sheba there was aa

Mr. W. R. Brown's Evidence. 363

ddent two months ago. Dynamite can be laid down in Barberton via Delagoa at ^^^[IK?^?!
i. per case. The average cost of driving and sinking on our mines amounts to 18 Barberton.
r cent, of the total cost. This question oi coal is becoming a serious matter with us.
many instances mines would put up milling plant, provided coal could be laid
pra at a reasonable rate. At present the price is too hifi^h for us to use it for PHoe of ooaI »t
ving our batteries. It costs about 30a per ton. I may mention these mines are
fhly prolific. We are desirous of sending our concentrates to Johannesburg for RaUwiy nUn,
atment, but the railway rate of £4 per ton is prohibitive. We prefer to ship them
I Delagoa Bay to Europe for treatment. The next question I would refer to is the
lage to the port. I do not wish to bring any statistics, but I will give one instance,
small parcel of wagon wood costs in Cape Town £5 13s. 9d., and the railage from
pe Town to Barberton was £10 2a Another instance is in connection with the
rberton Waterworka I have not the exact figures, but I have them approxi-
tely. The railage, cartage in England, and ocean freight came, roughly, to £500,
1 from Delagoa Bay to Barberton it cost about £2,000 — and that for public worka
i have not been able to get any remission of railage rates. There are bitter com- *'i**^|^S?*'
ints from merchants wim regard to claims for loss in shortage. Proof can be pro- i»ndsBaUwi^
^ed, if necessary, that claims for damage and shortage, even when certified by the
/ at Barberton, are seldom, if ever, recognised by the head office in Pretoria. It is
loet difficult thing to get these matters settled with the railway company, and
yple, unless the sum is considerable, prefer to lose their money rather than go to
)toria to sue the company. We feel it would be only fair and right if we were
>wed to sue the railway company up to a certain amount in our local Court It
aes very hard on people to have to lose their goods and to have to incur the expense
coming to Pretoria to sue the railway company. Another point is the right of the
Iway company to impose finea There is one instance I will name. A parcel of
alie meal of 50 bags arrived from Delagoa Bay about a fortnight ago ; the invoice
a lost through no fault of the consignor or consignee ; it was lost in the post, and
lore another invoice could be obtained, a charge of £8 10a for storage was imposed
the consignee, although the meal had been stored in a warehouse he had rented
»m the railway company at the railway station. The question of native labour is Native Ubonr
commg a very serious matter with us in Barberton. Up to quite recently we never B^SrSn.
d any difficulty in getting the number of natives required. It is a difficult
ing to talk about, because the best heads in Johannesburg have apparently not been
le to deal with the matter satisfactorily. I do not think we yrould have any diffi-
Ity in getting the small number of natives we require if it were not for the fact
at natives who are travelling, and intend to come to work in Barberton, are taken
ray against their will by touts to Johannesburg. We would like to have some
ethod adopted by the Government to put an end to this interference with natives,
lo not know that I am in ord^r in dealing with the matter of Government surveya oovemmentsar-

▼eyi.

Chairman.

Yes ; if you have anything to say we will be pleased to hear it. — It is merely
is, that in a district like ours, where claims are taken up, as a rule, by poor proB-
etars, the new law with regard to Government survey presses very hard on them. I
a quite understand it is not the same in Johannesburg ; the conditions are quite
lerent. In our district it has absolutely put a stop to prospecting. There is a small
liter of purely local interest I would like to mention, and that is the question of
silities for inter-communication between the different minea As the Chairman is
wre, ours is a very rough country, and we are very badly off for roada That has BviMrtoiiioidi.
en brought before the Government by memorial If it is within the province of

864

Mr. W. R. Brown *s Evidence.

QntUty of djna-
mlte.

Price of dyna-
■dte.

Bailway rates on

00*1.

Maladminiitm*
tion of NeUier*
iMidsBailway.

Native labour.

this Commission we wotdd be very glad if some recommendation were made that the
Government should assist us in tms matter; more especially a road that would connect
Barberton with the goldfields, which would be extended later on to Swazieland, and
tap the tin mines in that district.

I want to examine you with regard to the dynamite monopoly, more
it affects Barberton. Tou not onlv complain, I understand, of the expense, but also of
the quality ? — Yes, more especially because of the bad state in which the dynamite
reaches us.

You say you can lay down dynamite at Barberton for 53a ? — ^Yes, we import itbjr^
Delagoa Bay.

Then with reference to coal. Can you say what you would consider a reasonable^
price to pay on coal from Brugspruit to Barberton ? — Well, my idea of a reasonabl^^
price for that would be about Jd. per mile.

You would be satisfied with that ? — Well, yea

Now with reference to the other complaints about the fines imposed by
railway, and invoices being lost Can you not hand in some documents bearing
this matter ? — Yes, I have a letter here. I have a letter from the person who m
the complaint in question.

Will you be able to let the Commission have the documents in this case ; coilI^
you send them in to the secretary ? — Yea I can let you have the documents, as well
as sworn declarations. This is only one case. There are many others of a similar
nature.

With respect to native labour. I understand that the only complaint is that
while boys are coming to Barberton they are caught bv Johannesburg touts ? — Yes,
that is the only complaint we have in the matter oi native labour. I can give
instancea I have boys on two of the mines with which I am connected, who have
walked to Swazielana, knowing that if they went by Eomatie Poort they would be
caught by the touts.

Now, regarding the survey of claims. This matter does not, I think, lie withift
the scope of this enquiry, but as it is in the interests of the industry, I would advise
you to bring the matter to the notice of the Barberton Chamber of Mines, who could
work through the Minister of Mines to the Government. — ^Thanks, Mr. Chairman. I
brought it to the notice of the Commission in the interests of the industry.

Mr. Jovhert.

I only wish to ask if the coal from Belfast is worse for mining purposes than
that from Brugspruit ? — Oh, no ! I only gave Brugspruit as an instance, because of
the distance.

What I want to know is if there is any difference in the quality of the coal?—
That I cannot say say ; I have not gone into the matter.

Mr. SchmitZ'Dumont

Do you know whether the managers are satisfied with the blasting of the
blasting gelatine ? — ^Yes, they are, so far as I know, satisfied with it. They only
complain that they have to use it in place of dynamite. The blasting gelatine
certainly does heavier work than dynamite, but if the dynamite was as gooa as it iw*
in the old days, they would not need the gelatine.

Mr. Hugo.

White ubour- With respect to the question of white labour, is there any difficulty in yoflT

•uppiy and (Jigtrict ? — We have no difficulty in that matter. We get as many good men as t»»
require at fair wagea

Government tur*
veys.

Ooal~4iuaUty.

Oelatine.

.jyir. W. Shanks* Evidence. 865

How do these compare with Johannesburg ? — ^I do not know what the rate is at
Johannesburg. We pay a miner from £18 to £22, or even up to £25 per month.
CSarpenters get £5 10a to £6 a week, while for native labour we pay at the rate of
about 50a per month.

What IS the cost of living? Do the white men complain of the cost of living ? — I ^'nSrNjrtolSf **
never heard of any complainta

How does the cost of living compare with Johannesburg ? — ^That I cannot say.
Many of the men get free quarters, and then feed themselvea Since the special
duties have been taken off, I should say that they have no complaint in our district In
the old days, when the old duties were in force, they had cause to complain, for then
there were manv things which a miner could do with which he could not have. Under
the present conditions, however, they had no cause for complaint

Mr. Brochon.

What is the charge for living at the boarding houses ? — Well, there are no
boarding housea

But big mines like the Sheba have boarding houses on the property ; is that not
ao ? — ^Tes, there are boarding houses on some of them, but the men do not use them
much. On the Sheba mine, 1 believe, the men pay about £6 10s. a month. * boMdii»'h°*

Have you read the evidence given with regard to married men at Johannesburg ? ms.
^No, I have not read that specially.

Do you think the married men can live on £20 or £22 per month|? — ^Well, with
married men there is a difference. I should think that a married man could ust live
<m that and little more ; that is, after he has paid his household expenses, food for his
&mily, etc.

Mr. Brakhan.

Is it usual to give the married men quarters ? — Well, that depends to a great MMried mioen'
extent on the managers. quartwt.

For the single as well as the married men ? — No.

Mr. AUyii,

How do you arrive at the cost of dynamite to be 53s. ; is that from merchants ? ^^^ ^^^'
•*Ye8 ; in Johannesburg,

Mr. de Beer.

What is the cost of production per ton ? — ^I have no statistics on that point
You say that Johannesburg employs touts for the kaffir labour. You have the Native LOwar.
right to do the same thing. — Yes, but we have not the wealth. We complain of boys
leaving their homes to come to Barberton and being intercepted, and practically
forced to go to Johannesburg.

Mr. William Shanks was next called and duly sworn. He said : ^^eVwiiS*"^ *

I am the manager of the Barberton Consolidated Mine. I have not made any
statement, as all the questions have been so thoroughly thrashed out by the Johannes-
burg witnesses ; but I will hand in a table of figures showing in detail the cost of the
mine for the last four months so as to give you an idea of the various itema I have
a few remarks to make on native labour. You will notice from the statement that Native labour--
the native labour is by far the largest item of the cost. To begin with, these costs JS^/*'^ *^
are for developing and not for the mines running in full operation. It is not the
amount we pay the kaffir per month that runs up that cost ; it is the fact that we

sed Mr. W. Shanks* Evident*

have no guarantee whatever that we can keep up the suj^ply. To-day probaMy

may be fmly supplied, and next week we may be many natives short. The boysd

out without giving notice. This is a matter which affects the whole of the ^Id mil

industry of the l^ansvaal, and, in my opinion, it has to be dealt with chiefly by

mining community of Johannesburg and the Government. The question of efficie

is one which must be dealt with I think they should get . the boys to work fc

fixed time, say with a minimum of 8 or 12 months. Then we should get much hig

efficiencv out of them than we do at the present time. By far the dearest natives.

those who get paid the lowest wage, these being the green and untrained boys. T

the largest percentage of those who are getting used to the work leave. Noi

should think that if there were a committee appointed in Johannesburg to deal v

this question, consisting of representatives of tne Government and representatives

the mining industry, and if they legislated in the direction I have indicated to

kaffirs to bind themselves for 8 or 12 months, I think we should derive much ben

This same unreliableness of the natives also affects the cost of our white labour.

have always to keep a full supply of white labour whether there are sufficient nati

or not, becd.use if we are short we may always get others from time to time. To

anything in this matter the whole mining community must be unanimous. H

^^f*??ft2 ^ ^^^® lately reduced the kaffir wages, and it is a well-known fact that many of

wuit of unan- mines have not stuck to the agreement. They have been very unanimous at

mine mi^- Mine Managers' meetings, and afterwards many have paid the natives just what tl

*"• pleased. Of course the chief cause of this want of co-operation is due to the fact t

it is rarely ever that the native supply is equal to the demand. But I think if i

companies were unanimous, not only on the wages question, but on other points, 8t

as the making of some arrangements binding them to work for a fixed time, that <

ck>-opeffttion of mining community in general would greatly benefit by it. But, as before stated,

wqulJe d To must have the co-operation of the Government in carrying out any scheme we m

kjiw^ white formulate as regards the price of white labour. I have read some of the evider

given before the Commission, and, under present conditions, I agree that we cam

reduce the cost. Taking the mines in this country, we find that they are in a tota

different position to what they are in Europe, where they have to do the work the

selves. In this country they are more in the position of foremen to look after

many natives, and for this reason we have to select the best men for this purpose, a

therefore many miners who come to this country are not suitable, and they cani

get employment unless there is a scarcity. The cost of dynamite has been fuUv de

with by other witnesses, and I myself use only the blasting gelatine. If you look

Goetof iceutine. the cost of that as before you, you will see that is very heavy. It is something li

£6 per case, bujring 50 cases at a time. If we could get it for about half the price t

reduction would materially assist us. With regard to the railway rates, I had a sir

Railway rat€it Consignment of goods from Johannesburg, and it cost me at the rate of £8 or £10 ;

ton, and this seems to me to be out of all proportion.

Mr. de Beer.

at Barl^erton
to total work-
ing Goets.

^ oSS^SfLbouJ From the statement before me it would appear that the labour ranges from
"n per cent, to 70 per cent, of the total cost, and then you must allow about 7 per a
^' for food. Can you explain why Barberton is so much higher than the Witwaterara
which is only from 50 per cent to 60 per cent. ? — The reason I have pointed out
that these figures are for development, and at present we have no machinery at w(
as is the case in Johannesburg. Therefore our percentage of expenditure on laboui
less.

TED.

lecember, 1896 to March, 1897.

keb" Development.

n wages

^ages

rea

its

ores
neous

Totals
Footage

[OX " Exploration.

n wages

ivages

res

I
dts

ores
neous

Totals
Footage

January
Cost per foot.

8. d.

62 9-908

55 6-646

31 6-615

4 3-785

0 1-846
15 2-585

1 4-677

5 11-723
4 9-784
1 1108
0 1-385
9 8-769

192 8-831

32 ft. 6in.

February
Cost per foot.

S. d.

69 9-699

72 1-808

21 3-726

3 5-918

0 2-466
13 6-247

1 1-151

3 0082

4 1-068
0 11-918
0 6-082

10 6-630

March
Cost per foot.

S. d.

61 8-636

73 6000

30 10-909

4 10-909

17 1091

1 3273
11 11-864

3 6-364

2 9-818
0 6-818

11 8-182

Average
Cost per toot.

Percentage.

190 8-795

36 ft. 6 in.

s. d.

54 11-703
60 2-721
23 8-252

3 10-707

0 1-767
13 4-183

1 2-262
5 7-444
3 11-865
1 4-556
0 5-294

11 2-301

219 11-864

22 ft.

180 1-055

32 ft.

January
Cost per foot.

S. d.

10 10-857

8 11-714

5 5-476

0 3-679

1 9-500
0 1-178
0 10107

0 7-679

1 7-572

30 7-762
84 ft.

February
Cost per foot.

8. d.

21 6-085

11 8-282

4 0-282

0 2155

2 11-746

0 2-704

0 1-268

1 0-253
1 7-986

43 4-761
71ft.

March
Cost i)er foot.

8.
30
12
13

0
3
0
0
1
2

d.
1-350
7 050
0-500
8-550
6-300
3-600
1125
9150
3-525

64 5150
40 ft

Average
Cost per foot.

20
11
7
0
2
0
0
1
1

d.
1-165
0-587
1-832
4-353
6-421
2-589
3-125
1-717
8-352

44 6-141

61 ft. 7i in.

30-527
33-443
13-153
2-161
0082
7-412
0-660
3-121
2215
0-766
0-245
6-215

100000

Percentage.

45-150

24-823

16 069

0-815

. 5-695

0-485

0-585

2-568

3-810

100-000

rX'iienses.

Mr.' Q. A. Denny'ft Bvidaoce. 369

There is a charge of 13 per cent to 19 per dent for explosives ; that is also higher ^^^^^{"^^2
than in Johannesburg ?^I suppose it is because our rocks are so hard. ivet »t bJw

o rr ton Md on the

Mr. Sckmitz-Dv/mont ^*^*

Can you tell us the cost per ton for dynamite ? — ^In the main shaft the average
cost per foot is 28s. — ^that would be about 3a 4d. per ton.

1 know mines in the Rand who spend 6& — That is probably due to drilling with
rock drills — explosives for that are always very much higher.

On the Rand it varies from 6d. to 6b. per ton.

Mr. Brakhan.

Can you give us the size of the shaft ? — The inside dimensions are 14 feet by
6 feet It is a vertical shaft of three compartments.

Well, the cost does not seem to be excessive. Do you timber the shafts ? — We
have not divided the cageway yet It is only partially timbered on account of the
hardness of the rock.

Mr. Brochon,

What do you think about the quality of dynamite used on the Rand? — ^I really do Quality of drtm
Qot know much about dynamite. I have tried it on several occasiona I tried it at the S^g^^Soinef"
Metropolitan five or six years ago, but the fumes were so bad, and I did not get the
efficiency I considered necessary, so I turned to usine blasting gelatine. I think there
is very little to complain about blasting gelatine. What I complain about is the cost

Mr. G. A. Denny made the following statement : — Mr. a. a. Den-

'^ ny*i evidence.

I have been asked by the combined Klerksdorp Chamber to represent them
before this Commission. I was lately resident in Klerksdorp as general manager of
the B^erksdorp Proprietary Mines, Limited, and consulting engineer to the Buffels-
doom Consolidated and Southern Klerksdorp Companies, and was elected vice-
president of the Chamber of Mines. I am an Australian, and was educated in Victoria
SIS a mining engineer, and have practised as a consulting engineer in London, and have
in a professional capacity examined mines in many countries of the world, including
Bungary, Canada, U.S.A., Central America, Australia, and Tasmania. I came to the
Fransvaal in 1893, and have since been actively engaged in the pursuit of my pro-
fession. The combined Klerksdorp Chambers have themselves drawn up a statement,
p^hich they wish me to present to this Commission. Before doing so, however, I
i¥ould like to make a personal statement dealing with the present condition of the Penonai state-
iistrict I have carefully read through the evidence given, and the statements made ™*°^
by previous witnesses, who have, however, confined the applicability of their remarks
more especially to the Witwatersrand district. It is obvious, if the evidence which
das been adduced in support of the contention that the mining; industry of the
Fransvaal is labouring under extraordinary burdens be a true reflection of the con-
iitions which have conduced to its present low vitality, that the Klerksdorp district '^^^^^^^ ^■"
is burdened more heavily than that of Witwatersrand, for the following primanr dens. ^
reasons : (1) The average lowness of grade of its reefs ; (2) Its outlying position. It
js an axiom throughout gold-producing countries that a mine of proved richness, and
jven of only moderate payability, will directly influence the prospective value of the
mmediately adjoining properties, and indirectly affect that of a whole area within
reasonable distance. Such being the case, it follows that, as long as the postulated
nine is producing gold prc^tamy, there is some reason to hope that intelligently . .

370 Mr. O. A« Denny's Evidence.

directed prospecting of other areas within the stated reasonable distance, will develop
an equally profitable ore deposit, and hence the district is regarded as one dE
possibility, and enterprising companies can always be found to work therein. Given,
however, on the other hand, that a district is one which has only a record of f ailurea
to show, which can only keep one or two mines running along precariously in a hand
to mouth manner, and what is the result ? There is no room K>r hope of possibilily
based upon an actual successful mine ; the district suffers in times of infla-
tion from the machinations of the wild-cat promoter, who,, without thought
of intrinsic values, saddles the public with useless properties at exorbitant
rates, and when the bubble bursts, saddles the district with a name which
snells ''fraud" to the minds of the investing public. The latter description is
eloquent of the condition of E^erksdorp to-day. Boomed with extravagant reports
and estimates in the excited months of June and July, 1895, the punctures in its
armour caused by the suspension of operations of company after company, have only
too surely reduced it to utter collapse. It has now clearly been shown that the

^SkM^dirtrictf characteristic feature of the district s auriferous resources is bodies of banket ore,
averaging about 20a per ton in money value, in many instances 20 ft. or more in
width. The output of the Robinson, Wemmer, and other rich mines in the Witwatera-
rand district, prove that the wealth of their ores is more than competent to balance thd
evil of excessive dynamite costs, railway rates, etc., which have been so fully ventilated
before this Commission, and the effect of such a demonstration is two-fold. Fir8tiy,it
maintains the commercial status and credit of the towns which in parasitic growth
cluster around them; secondly — and, if possible, more important still — it maintedns the
courage of directors and shareholders in mines which are not certain from monthta
month on which side the balance of profit and loss will fall, and stimulates again,
indirectly, commercial development. In the Klerksdorp district, there is, unfortunately.

Companies of no such stimulus. Company after company has initiated work with great anticipation
district. Fai/^ of succcss, and without exception the companies which have reached the milling stag&

QTM.

have proved either unprofitable or only profitable enough to show a very slight amount
above the working costs. The district as a whole, then, genUemen, is reduced to this
basis : (1), reduction of working costs ; (2), abandonment of operations. Of 25 com-
^p'»n°fe8 ^Tn E?*^^ holding property in the district, only seven are working; namely, two, the
Klerksdorp Buffelsdoom Estate and Gold Mining Company, Limited, and the Eastleigh l^nes,

diftelct.

limited, are producing ; one, the Klerksdorp Gold and Diamond Company, engaged ill
mill erection ; and three, the Eastleigh Deep, Eastleigh "A," and Buffelsdoom Consoli-
dated Gold Mining Company, engaged in prospecting their holdings ; and one, Ariston,
working on tribute. The remainmg companies and scores of syndicates are lyii^^
'"^oondTtioM dormant, awaiting the advent of conmtions more in keeping with the average grade dc

require!. tiicir ores, before attempting to re-start work. The whole vitality of the district^

therefore, is contingent upon the provision of such conditions as shall make the

exploiting of the EJerksdorp low grade ores a commercially successful venture. And

^^^tSSotoivm- ^©^6 ttie mining industry and the Government of the country meet upon conmion

5?todSstS°" g^^^^^» ^^^ i^ ^^^ death of the one is involved firsUy, heavy losses to the pastoral and
agricultural industries of the district; and secondly, and more directly, a serious loss of
revenue. The industry and the Government have therefore to contend against common
conditions, which are inimical to their progress, and the question arises m what way is
the common danger to be avoided, and the languishing industry rehabilitated and
re-vitaUsed. The voluminous expert evidence already given before this Commission
^iSSS^" rates ^^'^^ ^^ superfluous to again illustrate the facts that have been adduced under th0

and^iSwimon heads of dynamite, railway rates, etc. It has been shown that a reduction of ratei^

oonoM^^^c^d the abolition of the dynamite concessions will secure the first step in tho0t

. Mr. Q« A. Denny's Evidence. 37i

ameliorating conditions which are absolutely essential for the vitality of a district like
Elerksdorp. Qiven low rates of transport and taxation only of such articles as the
country can itself legitimately produce, and the now distressful burdens of living will
be reduced, and in direct proportion will it be possible to reduce the costs to the mining B«Kiuctionofooft
industry, under the heading of white labour. The pay of the kaffir should be reduced J^/''*"***^
hy nearly one-half its present rate. I may state in passing that in the mines of Stl^ffwUm^-
Hungary, the white miners under my control were paid at the rate of from lOd. to Is. «» ^««"»
for 10 hours' work ; mechanics, such as carpenters, smiths, fitters, etc, at the rate of Is.
8d to Is. 6d. per day. In all oases these men housed and fed themselves. The climate of
the country is extreme. CJontrast with this the condition of the kaffir. From his earliest
infancy his wants are practically supplied by nature. The desire for comfort, and the owjduioni ot
ambition to occupy any particular social distinction, requiring luxurious displajr, is
absolutely unknown. He lives in a climate which is one continuous sunshine.
Whence then the necessity for paving him coin in the quantity which he demands, a
quantity which is perfectly fictitious, and only arises from the fact that he has a
natui-al aversion for work, and therefore the demand for his labour exceeding the
supply which spontaneously offers, creates a competitive market, of which he is not
dow to take advantage It seems to me that the one final method of reducing kaffir
pay rests with the Qovemment. It has the power to create laws which shall compel
every able-bodied kaffir to perform a given amount of work per annum. A system Forced native
somewhat of this kind was put into practice by the Qovemment of the Republic of For^ubonrin
Guatemala. The Qovemment watched with growing anxiety the gradual shrinkage <>a»t«n»ia.
of the country's revenue, and decided to make a bold step for the purpose of aug-
menting it. In pursuance of this, they enacted a law that every able-bodied resident
of the country should sow a certain area of ground with coffee, or, failing personal per-
formance, should pay the Qovemment an assessed amount of coin for the provision of
a substitute to do the work. The plan proved a perfect succesa Quatemala is to-day
the most prosperous of the Central American Republics. The institution of a modified
scheme to meet the special conditions of this country, would, I believe, be of great assist-
ance to the mining industry, and through that to the State. Under such compulsory
methods the hordes of idle, and, at present, useless kaffirs, who reside within the terri-
tory of the South African Republic, would become a factor of economical importance
in the staple industry of the State, and the question of want of native labour would
vanish from the horizon of practical work. From a manufacturing standpoint, the comparison of
Central American Republics may fairly be classed with the Transvaal I had occasion ^^^£^c!^I
to import certain machinerv and supplies from the United States, and from England, ^ubu£i'*2d
in the carrying out of mining operations in the Republic of Honduras. The Govern- in the ttms-
ment notified me that absolutely no import dues would be charged on goods of any
dafis whatsoever, so long as it could be proved that they were bona fide for use in the
operation of my company, or for the company's employees. It was further stated that
the Government was so anxious to foster the mining industry in their country that
they would assist in every possible way to meet the wishes of its responsible represen-
tativea In consequence of these concessions there is a growing feeling of confidence
in the status of the Republic ; and its mineral resources are under exploitation by
many wealthy London corporations A modification of such policy on the part of the
Government of this country would undoubtedly lead to a cheapening of the necessaries
of life ; and specially the treatment of the industry with more confidence and republican
spirit, would inevitably result in an activity that would be for the lasting benefit of
the State. In Victoria, Australia, not only does the Government do all in its power, in The -colony or
its administrative capacity, to assist the mining industry, but it actually votes from ST^^'^
£200,000 to £300,000 each year for the purpose of assisting prospectors to develop ^^"^^

372 Mr. Q. A. Denny's Evidence.

------ - ^

their holdings; the course being for the Government, upon approved opinion, to
advance £1 for every £1 spent by the prospector. In the event of the find proving
valuable the money is repaid ; in the reverse case no claim for repayment is made, the
view being that, in stimulating the mining industr v, good use is made of the money.

Agricuifcuiture It is uot neccssarv to point out, gentlemen, that a flourishing condition of the
intei«£^d^ mining industry is a direct specific to agricultural and pastoral depression. Minix^
m*inii*todiM°P^P^^*^^^^^ require all the produce of the farmerb' gardens and fields, and his
try. surplus stock. At present, and until the cost of gold winning can be reduced,

Witwatersrand is the only profitable market, and only farmers fortunate enough
to be within reasonable distance of Johannesburg can expect to derive any
material benefit. Should, however, costs be reduced by the concerted action
of the Government and the leaders of the mining industry, then such out-
lying districts as Klerksdorp, Heidelberg, etc, will revive, and the farming community,
at points embracing the whole territory, will participate in the genem

Klerksdorp prosperity. I have before stated that one strong reason why EUerksdorp should
prices. suflTer in a greater measure from the imposition of heavy burdens than Witwatersrand,

is because of its outlying position. The centre of the mining industry of this republic
is Johannesburg. There centre all the depots of supply for the ordinanr requisites of
every-day work. An article costs in Johannesburg a certain sum, in Klerksdorp that
amount is enhanced by the transport rates between the two points, therefore ibid

Labo«"jppiy»t working costs are higher. In the matter of labour, also, locality has a very great
orp. ^];^£^QQQQ Johannesburg being the seat of industry, it is quite natural that men in
search of employment seek that as their objective point, consequently the majority of
men in the outer districts are mere stragglers, whose competency may always be called
in question. Precisely the same may be said in connection with the native labour.
The most efiicient working kaffirs are those obtained from the north and north-east of
this republic. The Witwatersrand mines have always been able to take more kaffin
than were forthcoming, hence, again, Klerksdorp is only able to secure some few that
filter through the main centre. These are seldom the best class of workers, and there-
fore their performance is poor and expensive in comparison with the average trained
Rand kamr. Klerksdorp indubitably is on the high road traversed by the Cape
Colony and Basuto kaffirs, but for some months past these have been denied this roote
owing to the rinderpest regulations in vogue in the Orange Free State. In any cast,
however, as before indicated, the southern kaffir, as a workman, is distinctly inferior
to the northern, and, moreover, entertains great prejudices against underground wcn'k.
I have shown, therefore, that both in the matter of white and black labour, and ooflta
of supplies, Klerksdorp sufiers under greater disabilities than the Rand.

Dynamite. The expenditure under the head of dynamite is likewise very seriously increasedfin

Price of dyn*. Klerksdorp. The present price of dynamite at the magazine is 95s. per box of 501ba

port"* chJ^'e The transport rate per case from the dynamite factory to the Klerksdorp magazine la

at Klerksdorp. gg g j^ therefore the company not only makes an enormous profit on the factory sale

price, but makes a further 4s. 6d. per case profit on the transport Other wi<3ie68eB

have shown that it would be possible to lay dynamite down here, exclusive of Traoa-

AufMian price vaal duties, at 42s. 7d. per case. The ruling rate for dynamite in Australia is about

°*°" 358. per case in Sydney, Melbourne, Adelaide, or Brisbane ; that dynamite has to be

transported from Europe, a distance of 12,000 miles, and is then sold at a figure about

two and a half times less than the price at the Transvaal factory. The cost of blast-

cottt of gelatine, ing gelatine is 107s. 6d. per case, the concessionaires again taking a profit of 4& 81

conoewions. per case on transport Mr. Hennen Jennings has clearly shown the evils of concession-
granting, and I entirely endorse his views. With the abolition of the dynamite ooo-
cession a free market is opened, and if treated by the Qovemment with that liberalitgf

Mr. Q. A. Denny^s Evidence. 373

liich the industry claiins and deserves there is no reason why dynamite should not
t sold in this republic at 50s. per case. Finally, gentlemen, the case of the Klerks-
irp district is one which it is hoped will be proportionately weighed in your delibera-
>n8, regarding the recommendations you may see fit to make to the Qovemment.
ith liberal concessions made, the district will live and expand ; without them, it
nnot exist excepting in name.

Mr. Denny then handed in the following statement: —

Mr. Chairman and Gentlemen, — We, the E^erksdorp Chamber of Minesand theEIerks- statement of
»rp Chamber of Commerce, representing the following mining companies: The Klerks- ciSmber^S
app Gold and Diamond Company, Limited, Wol verand Gold ElsSsite and Mining Company, ^i e'r k'l d*orp
inited, Buifelsdoom Estate and Gold Mining Company, Limited, Eastleigh Mines, chamber of
imited, Westleigh Mines, Limited, Klerksdorp Proprietary, Limited, Niekerk (Klerks- NaiSMof*Serk».
a^) Gold Mining Company, Limited, Rietkuil Gold Mining Company, Limited, SZe."*"'^'*
b-ikander Gold Mining Company, Limited, Elandslaagte Gold Mining Company, Ltd.,
affelsdoom " A " Gold Mining Company ; and merchants : T. Leask & Co., Teengs
roe., A. Chittenden, Aldred, ]u)mbard, James A. Taylor, J. Levenson, H. and J. Israel,
'. Morton & Co., Gordon, Mitchell, J. Groth, Percival H. Read, Mackenzie & Co., E.
^yatt, H. Brown, Hamilton & Co., in Acknowledging your circular of the 14th inst,
questing evidence in respect to grievances and burdens of the mining industry,
spectf ully beg to point out that in this district there are 25 mining companies, with Number, oi^itai
.pitals amounting to over £5,000,000, of these but two are crushing and two develop- amon^^Tf
ig, the remainder having closed down ; and should no prompt and substantial relief be minV^'^ronf-
)tained from the disabilities under which the mining industry is now suffering, more panies.
(pecially those hereinafter enumerated, it is the firm opinion of these Chambers that ^ medSte tb-
le mining industry will entirely collapse. On the other hand, should such relief be filJ^dSSS^*
btained through your advice and influence, we consider capital would be found, not
ody sufficient for the restarting of the closed mines, but for still further exploration.
he object to be obtained is a working cost of from 1 2a to 18s. per ton of ore mined
ad milled, to allow 5 dwt or 6 dwt. mines to become payable propositions. To Relief asked for
soomplish this, substantial reductions are necessary in the cost of explosives, trans-
ort, European and native wages. The cost of No. 1 dynamite at the factory for 50
ises and upwards is 858. per case, at Klerksdorp 95s. per case ; whilst the cost of
unsport from the factory to Klerksdorp is but 5a 6d. per case, showing that the con- Price of dyna-
sssionaires not only receive their large profits from the sale of dynamite, but also ^SrtSai^Ut
lake a considerable further profit on the transport from the factory to their Klerks- Kie'>»*on>.
orp magazine. The cost of No. 1 A gelatine is 107s. 6d. per case at the Gei»tine — ooet
ictory; this is retailed at 117a 6d. per case, transport being at the same rate char^'^t
B for No. 1 dynamite, consequently the same advantages accrue to the con- ^^^'^^^^fp-
asaionaires as from the sale of dynamite. The above are the only explosives used
D these goldfields in quantities. Some of the softer rocks of surface workings would,
owever, allow of the use of blasting powder at a cheaper cost than dynamite, if
reater facilities were given for obtaining the same than at present We would also
ftll attention in relation to the foregoing charges that in the Orange Free State, 13 comparative
ules from om* mines, the cost of dynamite is £1 10s. per case less than in the Trans- 52te to •fran*
aal, while the Free State Mining interests are, as your Commission is aware, infinite- V^^oJ^St^^d
imal as compared to those of this country. No. 1 dynamite is also delivered at at^beriey.
amb^ley at 52a 6d. per case. We consider that the best way to alleviate the above
rould be to allow of competition in the import of explosives, but should you not see Free trade in ex-
xmr way to advise this course, as an alternative, relative to these goldfields only, we p^^^^^

374 Mr. Q. A. Denny's Evidence.

would suggest that the concessionaireB be instructed to allow explosives to be imported

Suggested im- direct to their Klerksdorp magazdne via Elroonstad, Orange Free State; the mines in

Pl^te for this district to have any advantages obtained from the more direct transit, over and

KrooS^^ above any reduction of the present price at the factory, which may be contemplated

Should this latter alternative be conceded, the following would be the transport &om

Port Elizabeth : —

Railway Rate to Kroonstad ... ... 4e. 9d. per 100 lbs.

Agent's Charges ... ... ... 0& 4d. ,.

Wagon Transport ... ... ... 2a 6d. „

7s. 7d. per 100 lb&

This would allow a saving to the mines of 10s. per case on the present Klerks-
dorp price, and a difference of 2a. per lOOlba only in favour of the factory, as the railway
rate to Cyrfontein is 7a 2d. per lOOlba transport to factory, say 3d., making a total
of 7a 6d. per lOOlba This 2a. per lOOlba, however, is not material, as it would only
make about 1^. per case difference in the cost.
BAiiwaymtes. Railwav rates. — ^These should be made with more consideration to the mining

districts still developing, and farmers' produce such as mealies, forage, etc., and stoef
BeductioDs in such as Cattle, horses, and mules, should be canied at a mere nommal rate between
J^uired "^for the agricultural districts and the mines, an9 we consider it a matter for yoar
*roduce**aSd Consideration that, notwithstanding the large profits of the railway during the last
stock. twelve months, the present depression has brought with it no corresponding reduction

in the railway charges for mining material, nor have matters otherwise been
facilitated. Take for instance the rough goods' rate from Port Elizabeth. The only

S)int of entry open to Klerksdorp during the first rinderpest regulations of the
range Free State was Vereeniging. The rate from Port Elizabeth to the middle of
Ib°J tTTo the Vaal River Bridge was 3a 7d. ner lOOlba, mileage 664*42. Netheriands cha^
veiSeSKSg!^ from the middle of the bridge to Vereeniging, Is., for a distance of only one mile.
Customs and forwarding charges, 5d. per lOOlba ; mule waffon transport from
Vereeniging to Klerksdorp, 6s. 6d. per lOOlbs. ; making a total of 11a 6d. per lOOlba
Railway rate Had the samc goods been taken on to Johannesburg, the railway rate* would have
Kiabeth **tobeen 6s. 3d. per lOOlbs. ; passing Customs and forwarding, 5d. per lOOlba; mtde
jiSS^CT^ui! transport from Johannesburg to B3erksdorp, 7s. 6d. per lOOlbs. ; making a total of
^^^^Dei*^ 13s. 2d., or Is. 8d. in favour of Vereeniging. From Delagoa Bay to Joharmesburg the
BaTto Ki&Sis- railway rate would have been 4s. 2d. per lOOlba; forwarding, etc., 5d. per lOOlba;
^^^' mule transport to Klerksdorp, 7s. 6d. per lOOlbs. ; making a total of 12a Id. per

lOOlbs., showing a difference of 7d. in favour of Vereeniging. We may here mention
that the Chamfer of Commerce, when the Orange Free State proclamations were firsfc
issued, approached the Go^remment and Netherlands Railway to assist us, as far as
Bequest to Gov- possiblc, in reduciu^ the heavy charge on this class of goods across the VaaJ River,
dm»*°nim»av ^ud to allow US to Clear our goods as before in BLlerksdorp ; but both these propositionB
SSi8°" acraa ^®^® coldly rcccivcd, and met with no support whatsoever. We would also like to
f^ river, point out the difference in mileage rates to the nearest railway stations to Klerksdorp
Railway mileage ou rough and third-class goods : — Rough goods' rate from Port Elizabeth to Kroonstaa
MdtwSddlSS (677-49 miles) at 3s. 7d. per lOOlba ; rough goods' rate from Durban to PotchefBtroom
»rood» ^ ■**: (672 miles) at 6a lid. per lOOlbs., e^ual to 40 per cent, over Port Elizabeth-Kroonstad
toKierkadorp. rate ou the mileage of 577'49 miles only ; rou£:h goods' rate from Delagoa Bay
to Potchefstroom (428 miles) 5a 3d. per lOOlba, equals 97 per cent, over Port
Elizabeth-Kroonstad rate on the mileage of 577*49. Rail carriage from Port Elizabeth
to Kroonstad (577*49) 4s. 9d. per 100 Iba Rail carriage from Durban to Potdief*
stroom (672 miles) 8a lid. per lOOlba, equals 36 per cent over Port Elinbett-

Mr. Q. A. Benny's Evidence. 375

Kroonstad rate on the mileage of 577*49. Bail carriage from Delagoa Bay to
Potdiefstroom (428 miles) 7a 9a. per lOOlbs., equals 120 per cent over Port Elizabeth-
Kroonstad rate on the mileage of 577*49. From this you will see the rough goods'
rate from Durban is 40 per cent higher than the Uape tariff, and Delagoa Bay oomp»rative
97 per cent On the third-class goods, Durban is 26 per cent, and Delagoa Bay Age^'^nteirOT
120 per cent more than the Cape, taking the average mileage at 57749, which we thi^A'^cTia
consider rives ample margin for large reductions on the Netherlands' charges. The If^wj****
Orange Tree State concessionaires are now surveying the new railway une from Md Deu^oa
Kroonstad to the Yaal Biver, and should your Qovemment at once decide to connect si^wtod^m
it with the present terminus of the Netherlands Bailway in BLlerksdorp, it would SSSSn^Kiwin'
greatly facilitate the transport of general goods, but more especially coal, which ^or? and the
diould on the completion of such a railway une, be delivered at our mines at from Ffne^r om
10s. to 15a per ton, instead of from 20a to 40a as at present. The ox and mule viS^Sw. ^
wagon transport between the Free State coalfields and these mines is also greatly KUrksd or p
impeded by the bad £^ir in which both the main transport road and the roads to "'"^
the mines are kept The drift at the Vaal Biver is also in an almost impassable state.
The mines in this district being scattered over an area of 500 square miles, the
advantage of the general up-keep of the roads is a matter of great necessity. In
farther reference to this, we would mention that while the State has received from
this district of an estimated population of 2,500 (whites) a revenue for the year of
£162,000, besides the extra expenditure upon the official staff, amounting but to a few
thousand pounds, very little has been expended uj)on public works, and we are of the
opinion that in common fairness more of the district's revenue should be spent in the
<ustrict itself, and less retained by the Central Government

European wages are eight per cent, higher than in Johannesburg, though the actual wute wages,
cost per ton of ore mined is less, which is to be accounted for by the comparative
largeness of the lodes worked. Miners and millmen are employed in this district at
from 15a to 20a per shift, but notwithstanding the expense gone to in providing
workmens' quarters, &c., bv the companies, the mine managers are of the unanimous
opinion no substantial reauction can be anticipated in wages until the cost of living
can be correspondingly reduced, and that is to be arrived at only by an all-round
reduction of uie customs and railway charges on the commodities of life.

The Chamber consider in time the present native wages may be reduced, owing to Reductiooof na-

R« rti 1 • 1 1 i ^ ? 1 _*_ ___--•_- 1 3 fi J 11 I • ^ . tlv6 warns.

the Free State rinderpest regulations being again relaxed so far as to allow natives to

piss through their territory from Basutoland and the Cape Colony to this country.

The charges of the Netherlands railway are, however, still prohibitive for the importa- RaUway ratei

tion of natives from Mozambique and Natal, and to further the supply of natives, and [tL^yS^

80 assist towards a further reduction in their wages, we would suggest that natives

should be encouraged to come to this district by a minimum railway fare being

charged, any loss resulting from such a reduction to be made up by an extra charge

to the natives when returning. It is also remarkable that, notwithstanding the very

large number of natives resident in this State, they are conspicuous by their absence

from employers of labour, and we consider it would be beneficial if native taxes ^toatton or na-

were increased, and natives that could show certificates of having worked six months tivea.

in the year be allowed a reduction of 25 per cent, besides which all Fieldcomets and

others engaged in the collection of native taxes, should discourage the system of the

Batives seUing their cattle to meet the tax, and by their paying only in coin, there

would be a greater necessity for them to come out and work.

We consider this law in itself is beneficial, but in this district it has not been put puiLaw.
into iosee, and should it be enforced, this Chamber consider a competent body of
cffidals would have to be established to carry out its provisiona The reason or the

376 Mr. O, A. 1>enny*fi Evtden0&

Chambers not having requested the enforcement of the law was, from the unanimom
opinion received from the districts where it was in operation, because of the unsatis-
factory manner in which the provisions of this law were being carried out.

liquor uw. )Ye consider this law also good in itself, but not carried out Could an addition be

MaUdministm- made, to the cffcct that no white man be allowed to obtain liquor either by writing or
^of Liquor Q^j^e^wise through the medium of natives, it would greatly facilitate the object of the

^Sminduiento ^®'^» *^^ ^^^^ offenders should be imprisoned without the option of a fine, the profits oi
to liquor Law. the trade being too large for the present fines inflicted to lessen the eviL We also

Nftttveiocationa. think that the introduction of a law establishing large native locations in the vicinity oi
theminingjcamps would be a greatad vantage in keeping up the permanent supply of labom
and hereby beg to place before you a report on the Buffelsdoom location in this district —
On account of the isolated position of the Buffelsdoom Qold Mine and the
attendant difficulty found in the procuring and retention of an efficient supply oi
native labour to carry on mining operations, a part of the policy of the company to

Buffeifdoom lo- overcome this impediment has been to always make the surroundings of the natives
cation. q^ comfortablc and pleasant as possible. In pursuance of this, five years ago a loca-

tion, situated on the smaller mijnpacht, and one mile from the works, was established
At the time of the formation of this, and on the same spot, there were then resident
17 natives. At the present time there are now living there 253 souls (100 men, 67
women, and 86 children), who occupy 94 huts, built by themselves and at their own
cost In addition to these places oi living, the natives have subscribed among them-
selves, and with the assistance of a little extraneous aid have built for themselves a
commodious church and schoolroom, presided over by a native missionary and teacher.
Order is maintained, and the interests of the company guarded by two police ; the8e»
in case of necessity, can easily j?et assistance, as tne msAor portion of the company's
police reside in the location. Of the numerous nationalities employed by the BuffeV
doom Company (some 13) there is a marked partiality by some tribes for huts in this
location ; Zambesis, practically the whole of whom are dnll-men, show this desire to a
great degree, and to accommodate those who have gone to their countries to fetdi
their families, there are now in course of erection 25 huts which will shortly be almost
doubled to shelter the families of other natives and their belongings from other parts
of the country. From the experience gained here, there seems good CTOund for
assuming that if locations were established in the proximity of the mines, Uiere would
be a base formed for a working force more permanent and steady in character thm
exists at present In order to render police patrolling as easy and efficacious as
possible, great care should be taken in the first instance in the granting of plots of
ground for building purposes. Since the establishment of the location on the property
of the Buffelsdoom Estate and Qold Mining Company such a thing as the interferenoe
with the members of one tribe by men of another nationality has not been known;
sickness, crime, and other disturbing influences being at a minimum. The Fieldconet
of the district, Mr. Andries Cronje, is personally acquainted with the location, its
situation, supervision, and the general behaviour of the inhabitants ; and in no way
does he consider its establishment as detrimental to the public peace or morality.

Anotheriocatoi From the rosults obtained by the introduction of the location here there is eveiy
recommen . ^.^^^^^ ^ Warrant the establishment of such another in districts more thickly popu-
lated by natives working on the mines, and where the whole system would be brought
more prominently under the notice of the public. In conclusion, we trust from the
statements and suggestions we have been able to place before you at so short a notice,
your committee will be of opinion, if only what is due to us is granted, that mining
costs will be so reduced as to enable the mines in this district to work on a profitable
basis, and so increase the general prosperity of the district.

Mr. Q. A. Denny's Evidence.

377

THE BUFFELSDOORN ESTATE AND G. M. CO.

SCHEDULE OF EUROPEAN WAGES. MAIGH AND APRIL, 1897.

■

P.O. of

ApriL

Total

Cost per ton.

total
cost.

£ 8.

£ 8. d.

s. d.

} • • • • • •

1,039 19

1,208 10 6

2,248 9 9

1 748

6-89

i • • • • •

257 18

206 0 8

463 18 11

0 4-03

1-42

ig engine-

eio • • • • • •

122 6

129 0 4

251 6 10

0 218

•77

remen

50 0

50 0 0

100 0 0

0 87

•81

•esHor drivers

43 11

42 6 4

85 17 4

0 -74

•2

icians

43 13

48 13 4

92 6 8

0 -8

•28

le trams

21 7

5 3 4

26 10 10

0 -23

■08

tmiihs

136 17 11

141 4 7

278 2 6

0 2-41

•85

oiths

291 8

315 9 10

606 18 3

0 5-26

1-86

8 • • • • • •

86 16

40 0 0

126 16 0

0 11

•39

iters

168 7

170 9 7

338 16 8

0 2^93

1^04

uiero* • • • • •

133 4

131 10 0

264 14 0

0 2-29

•81

sn • •• • • •

220 12

205 7 6

425 19 6

0 3-69

181

ar engine-

•

exo • • • • • •

35 16

30 0 0

65 16 8

0 57

•20

lirfne-drivers

76 12

93 0 0

169 12 2

0 147

•52

y 0 99 • • •

86 3

70 16 10

156 19 11

0 1-36

•48

»ound and

ch ••• •••

56 3

57 11 6

113 14 9

0. -97

•35

and store

ping and

etary

237 8

233 1 0

470 9 6

0 4-07

1-44

'otals

£3,108 4

£3,178 5 4

£6,286 10 3

4 645

19-2

378

Mr. Q. A. Denny's. Evidenob.

THE BUFFELSDOORN ESTATE AND G. M. CO.

SCHEDULE OF STORES CONSUMED.— MARCH AND APRIL, 1897.

Maroh*

April.

TotaL

Coet per (on.

P
<

£ 8.

£ •.

£ 8. d.

Candles

317 4

319 0

636 5 4

5-51

Cyanide

628 13

377 8

1,006 2 1

fr72

Explosives

1,667 4

2,031 11

3,698 15 10

8-04

Fuel

2,293 10

1,938 2

4,231 13 1

0-66

General

778 8

646 8

1,424 17 9

0-34

Lubricants

331 14

276 8

608 2 5

5-27

Mercury

18 7

18 17 4

•16

Mealies

693 8

489 1

1,182 9 4

0 10-24

Oxen

133 5

178 1

311 8 10

2-7

oiieei • • • • • •

220 1

155 1

375 2 8

3-25

*
1

Shoes and dies ...

273 12

140 0

413 17 2

3-58

Tools

55 6

38 8

93 14 8

•81

Timber

87 5

108 16

186 1 11

Zinc

48 4

40 1

88 5 10

•77

Forage

Crusher spares ...

29 4 10

22 5

51 10 6

•45

125 9

83 12

209 2 0

1-81

Rails and sleepers

14 11

0 6

14 18 2

•13

Stationery

59 8

39 0 10

98 9 0

•85

Totals

£7.775 11

£6,884 2

£14,659 13 11

6-99

Mr. Q. A. Denny's Evidence.

379

EASTLEIGH MINES. LIMITED.

WORKING COSTS, MARCH AND APRIL, 1897.

Cost per ton.

Per cent, of total cost.

March.

ApriL

March. .

April.

3 wages

i> ••• •••

••• ••• •••

mite

ide

ry stores

ces

ry expenses

8. d.

7 0-3
9 5-9
5 6-2

1 107

2 3-2

3 3-4
6-7
2-8

8. d.

6 2-7
8 10-9
4 10-4
1 6-3
1 8-6
3 4-5
4-9
31

23-20

31-67

18-22

6-23

7-49

10-86

1-86

0-77

22-78

32-67

1781

5-64

6-27

12-46

1-52

0-95

Total

30 3-2

27 3-4

380

Mr. Q. A. Denny's Evidence.

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Mr. A. Phillip's Evidence* 881

Mr. Albebt Phillip, director of the South African Company of Explosives was ^^^VidinJ?"*^'
en called He stated:

In compliance with the request of this honourable Commission to five evidence
L all matters known to us concerning certain grievances complained of by the
inin^ industry, as well as on other matters connected therewith, I beg to submit
e following statement to this honourable Commission ; —

The sob object of this statement is to prove to this Commission that different
sertions which have been made during the sitting of this Commission, and materially
Fecting the interests of the company I represent, are void of any foundation. It has
> further object, as I am not acquainted with any grievances resting on the mininfi^
dustry, which affect us as an industrial concern. The present companv, the Zuid
Ericaansche Fabrieken voor Ontplofbare Stoffen, Beperkt, was formed ana registered sonth AMoan

such in the South African Republic in June, 1894. Its capital is £450,000. Smce cSmnVn J-
e formation of the company we have erected a factory in this republic, which is S?^*"***"'
e largest dvnamite factory in the world. Our capital outlay on the factories alone, cogt of enctiog
ithout stock, is about £600,000. We commenced manufacturing in October, 1896. ^^^ *^
le factories would have been ready before this time had it not been for causes
yond our control, such as the Jameson raid and the rinderpest At the commence-
ent the factories are worked very slowly, in view of the dangers attending the
anufacture of explosives, and of the difBculty of drilling a large staff, including
any hundreds of blacks, in the observance of all precautions necessary in sO
kngerous a manufacture, when carried on on so large a scale, and it was thought
isirable that the actual production should be limited to about 80,000 cases per Annual modno.
mum, a rate which should subsequently be gradually increased as considerations of Site. *'^^°*"
fety may admit Under our contract with the Qovemment the maximum prices Pricei chMge-
lowed to be charged for djniamite No. 1, containing 76j)er cent of nitro-glycerine, mlte^'undw

908. per case, and for other kinds in proportion. We charge 85s. per case for ^JJJJ™***'
mamite No. 1, ex magazine. Statements have been made before this Commission, to Actoai prioe of
;e effect that djniamite No. 1 could be imported at a price of, I think it was, 35a per ^'y"*™*^
se, free of duty, laid down in JohannesDurg. These statements have been of the ^^'J^SuSe!*****
"eatest interest tx) us, as we were not aware of it before. At the last session of the
olksraad, a Volksraad Commission was appointed, who brought out a report on voiksiwumyna-
e dynamite question. This report has not been treated to its full extent by the Som ^^'**°*™*^
olksraad, and until this is done, moreover, as it is the intention of the Honourable
Dlksraad to specially enquire about European prices, I will refrain from comment-
g on above statements. All I can say for the moment is, that, as far as I know,
mamite No. 1 is being sold at the following prices in other countries : — p^^ ^ jj^, j

Australian Ports— From 79s. 2d. to 83a 4d. per case. . lSSiJ,Brf£

British India — 110a per case. c\'°*"**bSI!

Cape Colony — Port Elizabeth, 67a per case ; Kimberley, 72!a 6d. per case ; De d«u°aiid n».
eers, 658. per case. ^*

Rhodesia — Bulawayo, 110a per case, ; Victoria, 115a per case ; Salisbury, 120a
urease.

Natal — 87a 6d. per case.

Further, I wish to add that, according to an official report of El Callao and La price of dyna-
Dlumbia mines, both in South America, and of which Mr. Hamilton Smith, the well- SjfJ^S^".
ttown authority on mining matters on the Rand, was consulting en^ne^, it appears ^^^^JJ:
lat the price there for dynamite is 108a 9|<L per case, against 85a m Johannesburg.
0 many statements have been made about this company making 40a, and I do not
now how much more, profit per case, I am very sorry to say that this is not the case.

382 Mr. A. Phillip's Evidence.

Without going into the details of this company's business, which would be an

unprecedentea action on the part of any trading concern, and which the directors

have not the right to do without the sanction of a general meeting of shareholders.

Dividend of wc may ouly refer this honourable Commission to this company's last balance sheet

I'xpioVi^^s for 1895, which produced a dividend at the rate of 8 per cent, per annum, so that the

^m'*"^ '®' profits of our company cannot be so abnormal as people try to make out As to the

tiovemment's share, it does not seem to be known that the State received during-

state's share 1896 £44,000 as a royalty. Besides this, the State gets a certain share in the profits

s!>uSrAfriciC! of this company, so that statements to the effect that this company derives ul the

comwinj'! '^^ P^^^^ ^ ^^® detriment of the State, are quite incorrect. This point has also beeiii

raised by statements before the Commission, referring to accidents arising through

^cfdJSts! ^ ^® alleged bad quality of our explosivea I may mention that all complaints coming

to our notice have been thoroughly investigated, and all the accidents have been

traced to either bad ventilation of the respective mines, or to the careless tamping

of drill holes. Another great factor which plavs an important part in the

Erevention of accidents at mines, is the use of proper detonators and fuses,
ut all these defects, we hope, will be abolished as soon as the new dyna-
mite or explosives' law comes into operation, which we trust will soon take
place. I may add that all the explosives, as soon as they are ready to leave
our factory, are submitted to the so-called British test, and if they do not
stand the test they are kept back and re- worked. I think it is hardly recognised
amongst the industrial community in this republic that our undertaking is as good an
Industrial ad- iudustry as the gold industry on the Witwatersrand. It would lead me too far to
rhfjjf^^by ^ dwell on the advantages this country is deriving from an established industry such as
S^orthl? <>"^ Suffice it to say that we have paid during the year of 1896 about £118,000 to
rican Expioa- coutractors for building up houses, water dams, etc. And goods bought locally at
ves ompany. pj,gj^j^ ^^^ Johannesburg amount to about £57,000, for coal, timber, corrugated iron,
eta, and about £12,500 for kaffir food, and £104,000 as railage ; not taking into con-
sideration the money spent in the country by our staff and work-people, consisting of
^atiSj^tSo" *^^^ white people and 1,300 nativea A statement has been made to this honourable
experiments. Commissiou recommending the use of roburite instead of nitro-glycerine compounda
Without going into the details of this statement, I may draw the attention of the
honourable Commission to the following fact, viz., that in the year 1893 the Govern-
ment, on the request of the roburite people, bought 300 cases of roburite as a trial,,
of which we have still got 167 cases in stock. The balance was sent to several mines
for trial, and we received reports to the effect that the roburite did not answer the
American dyna- purpose. As to American dynamite I may state that this company also bought a trial
factoryTx^l^ri- shipment some time ago (1894) which resulted in a complete failure, and according to
menta. ^j^^ f^^^ years' experience I personally had in Mexico, I should consider it my duty to

recommend the Government not to import this stuff, the quality being quite unsuitable
for the work required in this country, and the danger connected with tne use of this
defective article being too great. I should like to say that we are obliged, according
to our contract with the Government, to give certain information to the Governments
This information we are at present, and will always be, anxious and eager to give,
but, of course, always in terms of our contitict. This company is most anxious to do
everything in its power to assist the Commission in showing the magnitude of the
industrial imdertaking of the company, and would, therefore, be pleasea if the Com*
mission would examine what is being done at the large factories which have beea
Price of dyna- crcctcd by the company.
beriey^at De Chairman,

nSSI " In Kimberley is the price 67s. 6d. per case ? — 728. 6d ; De Beers get a redoctioi^

■Mr. A. Phillip's Evidence. 883

0f five per cent, because they have a large contract ; and m Natal 87& 6d.

Can you tell us who. delivers that dynamite m Eimberley and Natal at that
price ? — The Nobel Trust Company.

Mr. Hugo.
I see you deny the statement that dynamite can be delivered here at 40s. ? — I am PHce of imitor-

not aware of it ted dynamite.

It has been stated that at Hamburg dynamite is sold at 18s. 6d. ? — ^I don't know Eurooean pfia
anything about European prices. °' ajnomite

Tou cannot say whether that is correct or not ? — No.

Mr. Hay.

In the first paragraph of your report yon say that you are not acquainted with
any grievances resting on the mining mdustry. Now, the contention all through this
Commission has been that one of the industry's burdens is the high price of dynamite,
and that if there were free trade in dynamite it could be imported at a very much
lower rate. Can you tell us the quantity which you imported into the country last Government the
year ?— I may say this company does not import dynamite ; it is the Government who SSSt?'"'^^"
unports it.

Will you tell us how much dynamite the Government imported last year and
sold through their agents ? — The Government imported from 18th June, 1894, to the
22nd October, 1896, 466,000 cases of materials required for the manufacture of importation of
dynamite and blasting gelatine. gSHSM* Sk^

When you say 466,000 cases of materials, will you explain what you mean, or, teriais.
rather, perhaps you will explain how you make dynamite — tell us the ingredients that
are required ? — ^It is very difficult for me to say how to make dynamite — if you say a
certain kind of dynamite I will tell you.

Tou say 466,000 cases of material were imported between June, 1894, and
October, 1896. That means nothing to us unless you explain what vou mean by the
word " material." — The material is called " elihr impregn^," which is a sort of pre-
paration of nitro-glycerine, in order to make it safer for transport.

Practically you are importing dynamite in bulk. — ^That is not exactly right. It
quite depends on the kind of dynamite you want to produce. For instance, without

Sling into the technical question of dynamite. No. 1 is prepared quite difierently from
o. 2, and blasting gelatme is quite different from No. 2.

I quite understand that The difference between No. 1 and No. 2 is the strength
of the explosive. Practically you take gUhr impregn^ as dynamite ? — You cannot call
it dynamite, because you cannot use it as it is.

It will explode the same as the other if used with a detonator ? — Nitro-glycerine
in itself does that

Ton use the words '' glihr impregn^ " when I ask you about '' material," and I
follow that up and ask you what that is, and you give some other explanation which
does not lead us any further. Guhr is earth and clay that absorbs the nitro-glycerine
^it is done in that way to carry the nitro-glycerine, and therefore when you import
it in block it is really dynamite ? — ^The difference in the c|uestions and the replies is
that we call the explosive that which can be used in a mme, so that if you ask me
whether gtthr impregn^ is dynamite I say not

Does it not simply mean the difference between gunpowder in bulk and in
eartridge ? — ^Na

When you got these 466,000 cases, what did you do with them ? — We have to
Carry it through a certain process.

384 Mr. A. Phillip's Evidence.

It will simplify matters, perhaps, if yon tell us how many of these 466,000 cases
were gruhr impregn^ ? — ^I have not got the information with me.

Gtihr impregn^ is one way in which it is impcnrted ; how do yon import it when
it is for blasting gelatine ? — Blasting gelatine is introduced in a similar way to gtihr
impregn^, also in block ; but that does not say you can use the blocks as they are.

^ey could be used if you made the hole large enough to put them in ? — ^Yes ;
that is why I say if you put nitro-glycerine in pure you can use it ?

The question I really want to get at is this: How much of tl is is imported

already made, and how much of it has to be manufactured here ? — Well, these 466,000

cases were materials required for the manufacture of dynamite.

Report of vaiks. In the rcport of the Commission, which sat la«t year, it said, if I remember right,

oS^^S^^ that the factory was not able to make the quanti^ of djniamite required, and uiat

the stuff was imported practically already made ? — ^Ihat is not correct.

In paragraph 8 it says: ''This point arises in connection with the question whether

the Government agent shall be allowed to import explosives, gelatine, and gtihr

impre^^, which is, in fact, nothing but dynamite not yet made into cartridges." Your

Commission gathers from the accounts placed in their hands by the honourable the

Profit ^ ^^^ State Secretary that the ''profit of the company on blasting gelatine and gtihr

pio^M Com- impregn^ imported by the State amounts to almost £2 per case, of which the

portod°^euI Government only gets 58. per case." The question comes to this — Is that correct or

This is the report presented by the Volksraad Dynamite Commission to the
honourable the First Volksraad on the 22nd February, 1897. — I say that is not
correct It is rather hard on me to examine me on a question which is stiU before
the Volksraad.

This Commission has been appointed by the Government to enquire into the
grievances of the mining industrv, and the price of dynamite forms one of the very
important questions — I do not deny that in the least, but I want to sav I do lu^
think it is quite fair to examine me on a matter which is before the Volksraad, and
which has not been decided yet.

When this was before the Baad a resolution of the Baad was taken, and the
Government was then authorised to proceed with a further Commission, and ont of
that I understand this Commission nas been appointed. — I think you are nustaken.
The Volksraad appointed a separate Commission to enquire into the European priee&
This Commission was only appointed to enquire into the grievances of the minea

If I understand you rightly, this Commission, by enquiring into the question of
dynamite, is exceeding its powers. — I won't say exceeding its powers, because I do iwt
know the powers of the Commission ; but I would like to mention that the dynamite
question is before the Volksraad, and I do not think it is fair to examine me on the
same point until the Volksraad has decided upon it.

But surely you can state to us exactly what you stated to the Volksraad Com-
mission.— That is what I am doing ; but you ask me whether the statement made is
he report is correct
Imported d:pa. If I put the qucstious one by one perhaps you will answer. In paragraph 5,
mitemfttenaiB. ^^^^g^ g^ j^ statcs : ** This cxpIosive gelatme and gtihr impregn^ importea is notain^
else, but No. 1 not yet made into cartridgea" Is that correct ? — I am quite prepaiw
to ^ve you all the information ; but on this the Volksraad Commission has reported,
and I would prefer not to reply.
Govemment the The fact is that on this gUhr impregn^ you pay the same duty in the Cape GoIoBf
J^^J^^ o'as you pay on dynamite ? — ^As we do not import it, of course it is the QoverntnsBk
pays the import duty.

Mr. A. Phillip's Evidence. 385

The Cape Colony treats it as dynamite ? — ^That may be, but as the Qovemment
has never imported ready-made dynamite up to the present, I cannot say if the Cape
^uty is the same.

I don't understand your position. Ton are here as the representative of the
f actoj^ which manufactures the djniamite ? — ^Tes.

llien the question is : Has the Government imported this dynamite ? Have you
anything to do with that at all ? — ^That is rather a difficult question.

What I mean to say is, when I ask the question whether you import the dyna-
mite you fence by saying : " No, we don't ; the Government does." — ^Yes, the Govern-
ment imports it.

Then who is the Government agent? — Mr. Vorstman. TheCtovemmei

The question is, who is going to give us this information. In paragraph 9 it is p,^onimpo
stated : " The importation of this yields a very large profit, which has nothing to do teddyMmiS
with the profit on the explosive itself." Is that correct or not — that this importation
yields a great profit to the company, which has nothing to do with the explosives
manufactured by themselvea Is this true ? — The only thing I can say is that the
company makes profita

The company makes profits out of this material, which is imported by the Govern-
ment agent The question is, in respect to this gUhr imported by the Government imported dym
^ent, from whom it is bought ? — From whom does the Government buy it ? Si^ nSiIS*

Yea — Of course this is in the Commission report. They buy it from Nobel's t^"^*™**
I)ynamite Trust

It is fair to assume that these people make a profit, and that Nobel's Trust make
■a profit on the other side ? — That, of course, I cannot say. It is supposed to be so, but
1 cannot swear to it

It is fair to assume they do make profit on it ? — If you like. I would not like to
•swear to it

In paragraph 10, the reply is that the approximate profit on this material ProfitsoniiuDoi
imported leaves a profit of nearly £2 a case. Is that correct ? — ^No; it is not correct ^^^^'y"™^
I sav in my statement I cannot go into details as to the company, and how much
pront they make. It would be quite an unprecedented case in any trading company.

If I asked you how much profit you made on the manufactured article —
.^nuinely manufactured at the factory — ^that might be a fair reply to give. But this
IS a question here whether the Government import the dynamite not made in the
country and sold to ua Now, the question is simply a fair question : How much
profit IS made out of that? — The only thing I can say is, that I only refer to the
oalanoe-sheet of our company for 1895, from the time that we got the sale of the stuff
introduced by the Government This shows only a dividend of 8 per cent

Do you mean Nobel's Trust or this company ? — This company.

How does this Yolksraad Commission arrive at the conclusion that almost £2 a
•case profit is made ? — That is a question I cannot answer. I was not present when
the Uommission made up their report

Because £2 a case on 466,000 cases would be nearly a million of money ? — Yes,
Imt we have not got it

Then who gets it ? — I don't know. The only thing I can say is, I don't believe it

Then this paragraph in the Volksraad Commission's report is not true ? — ^There
^u put questiona I cannot say that the things the Commission state are not trua
All 1 can say is, we don't make that profit

Then can you say who made it ?

386 Mr. A. Phf flip's Evidence.

Chairman.

Mr. Hay must understand that Mr. Phillip is only the representative of the^
factory, and that he is not the Government agent for the sale of dynamite.

Mr. Hay.

I must simply say that in the report of the Commission they use the words^
" the profit of the company," and then Mr. Phillip says he represents the company.
Therefore it is fair to assume that the profit went into his hands.

Witness.] Mr. Chairman, what I object to is, that Mr. Hay asked me whether
this report was true.

Chairman.

I don't think it is reasonable to ask such a question, because we don't know
ourselves from where the Volksraad Commission got their information.

Mr. Hay.

They say the accounts were placed in their hands by the State Secretary. You

think, at any rate, supposing that was correct — ^that £2 a case was made out of

imported stuff — that would be very large profit ? — ^It would be a very large profit, yes.

And it would be a reasonable ground for the industry to have a s^evance. i ou

say you don't know anything at all about European prices, and, therefore, on the

question of Nobel's Trust agreeing to sell dynamite down to 40s. in bond in Johannes-

Price of Nobel's "^^& y^^ dou't kuow whether that would leave them a profit or not? — ^That was-

dynwoi^ in before my time.

in 1893. I suppose you are aware of the fact that Nobel's people sold dynamite here at

75s. a case, and paid the Government STs. 6d. duty ? — ^At what time was that ?
That was in November, 1893. — ^I don't know about those times.

Composition of -»# n i

"gflhr im- Mr. Brockon.

pregn*." and

djnamite. What is the composition of gtthr impregn^ ? — GUhr is kiesel giihr and nitro-

glycerine.

What proportion of nitro-glycerine ? — It differs materially from 65 to 75 percent
What is the composition of the dynamite No. 1 ? — Dynamite No. 1 is nitro-
glycerine and glihr — 75 per cent, and 25 per cent.

And No. 2 ? — No. 2 consists of nitro-glycerine, kiesel giihr, nitrate of soda, chalk,
ochre. I think that is all.

What quantity of nitro-glycerine ? — If I am not mistaken it is about 60 per cent,
— between 58 and 60 per cent.

And of kiesel glinr what is the proportion ? — That depends upon the nitrate of
compodtion of soda, ochre, and all those things you mix together.
^ **°^* Yes, but how much kiesel gtthr ? — I should say about 34 per cent

What is the proportion of nitro-glycerine in blasting gelatine ? — We make it
between 91 and 93.
^'glSlSw^^ma?! "^y these figures we see it is very easy for you to make dynamite 1 and 2 if
eriais. you havc gtthr imprc^^ ? — ^I don't deny it

Do you receive the gelatine all ready as gelatine ? — No, we receive it in blocks.
Do you take this nitro-glycerine off your gtthr impregn^, or receive it already •»
gelatine ? — In order to explain to you I would have to go into the whole dynamtid

Mr. A. Phillip's Evidence. 387

manufacture from the beginning. I am not up in the technical manufacture of
dynamite. I know, of course, a good deal about it. The only thing I can tell you is
that there are a lot of things in making dynamite, which people have hardly any
idea about

I only ask you from where you take the gelatine that is in the nitro-glycerine?—
Those 466,000 cases ? They served to manufacture the dynamite here.
So all those 466,000 cases are glihr impregn^ ? — That I cannot say.

What are you making now at the factory — only dynamite, or gelatine too ? — We ^ nSiite^fwi-
make all sorts of dynamite. tory. *^"

They are really manufacturing blasting gelatine at the factory — ^nitro-glycerine
and everything? — Yea

In your statement you seem to consider it impossible that dynamite can be European prices
delivered at 438. Other witnesses have said that they are quite certain it can ; but ** ^^" ^
do you think it possible to do so without the djmamite being of an inferior quality? —
I have said already that I do not know anything about European prices.

Do you think there can be much difference in two kinds of dynamite which only oompodtionand
carry 75 per cent, of nitro-glycerine ? — Yes ; there can be some difference. SSIte. **' ^

Do you think nitro-glycerine could make a great difference in the cost price ? — It
is not exactly the quality of nitro-glycerine, but it is the material you put into it.

We will take dynamite No. 1 ; with 75 per cent, of nitro-glycenne, do you use
kiead gtlhr ? — Not always.

You would have to have good kiesel gUhr to carry 75 per cent of nitro-glycerine,
80 all the difference is in the nitro-glycerine? — That is where I don't agree with you.

Why ? — Because you can use as an absorbent material — say, wood, meal, nitrate
of soda.

I don't admit that this can carry 75 per cent, of nitro-glycerine. — I quite agree
with you.

So that all the difference in the price must arise in the quality of nitro-
glycerine ? — Yes.

How much water can nitro-glycerine carry ? — There you are going into technical
questions again.

We can say that the dynamite offered in Hamburg at £43 per ton and £1 Is. 6d.
per case, when it contains 75 per cent, of nitro-glycerine, must be equivalent to
Nobel's dynamite. Do you admit that ? — I admit what you say, but I don't know
Anything about European prices.

You admit that the dynamite containing an average of 75 per cent, of nitro-
glycerine is good dynamite ? — Yes.

Mr. Albu,

You have been a director of this company for some time, have you not ? — Since
November, 1895.

Have you acted in a like capacity for Nobel's in any other country ? — Not in the Mr. Phuup and
^me capacity. Nobei'a.

But you have been connected with the dynamite business for a good many
years ?— Oh, yes.

I ^ther that from the ability with which you give prices in Australian
ports, in British India, in the Cape Colony, in Rhodesia, and in Natal. But
U is -somewhat strange, with all this experience, that you could be totally
^orant of the prices which are ruling in England and France. You simply deny
•II knowledge of that ? — I don't see the connection of one point with the other.

You see, it is strange that we should know the prices at which it is sold at
'A.ustralian ports, and you, who have been connected with the dynamite business for so

388 Mr. A. Phillip's Evidence.

many years, don't know : your father is chairman of Nobel's Trust, and you, as a
director of Nobel's Trust, should not know the price at which dynamite is sold in
England or on the Continent Of coiurse, I only express my surprise at this ; I don't
expect you to know. — First of all, if my father is a director of the Nobel Trust
Company that does not imply that I know anything about it Consequently, you ask
me whether I had any connection with the Nobel Dynamite Trust for a long period.
You don't ask me in what capacity. I have been acting as agent for the Nobel jDyna-
mite Trust Company in Mexico, and, as agent, I have no right to enquire about the
cost price. The only thing I know, as a^nt, is the selling price.
^fordffpriSl How do you know the selling price in Australia and British India ? It is strange
of dynamite, vou do uot know it in Austria and Germany. I cannot help being astonished at it—
In that case you may be surprised that I don't know the price in Holland, India,
China, and Japan.

In China, no ; but wherever Nobel's Trust is I should expect you to know the
prices ruling there. — If I had known you would want the price I would have got it
for you.

I know the price, and I always make it my business, as a purchaser, to know
what an article costs. — It is my business to sell, not to buy.

But surely, as a director of Nobel's Agency here, and knowing the grievances of
the mining industry, and knowing the clamour for cheaper dynamite, vou have
inquired of Nobel's : " What are you selling dynamite for at Home ? " — Allow me to
express my surprise, Mr. Albu, that you should make such a remark. Tou know I
have got a contract in this country to sell at a certain price, and whether you have
got grievances or not is no business of mine.

And you, as supplier of an article, make no attempt to find out whether it is so
or not — You may tell me what vou like ; I stick to my contract
^'^te^^'at'^De Quite SO. Will you contradict me when I say that dynamite is sold at De Be«fl,
Been. Kimbcrley, not for 728. 6d. but 57s. 6A — Yes, I flatly contradict you. Dynamite ia

sold to De Beers at 65s.

Under the new contract it is 57a 6d And my authority for my statement is

Mr. Francis Gates, director of the De Beers Company. — You had better call him as

witness.

Price of .^nc^ I am chairman of a diamond mining company in Kimberley. I don't buy my

iS'^riey. * dynamite from Nobel's " ring ;" I buy it m France, and get it delivered on my mine

in Kimberley at 55s. per case. — What quality ?

Seventy per cent. — I have been talking about No. 1.

That is 75 per cent Out of that 55s. the Cape Government get 12a 6d. duty,
against the magnificent sum which the Transvaal Government receivea I get it
delivered in any quantity I like, and the quantity used by the company of which I
am chairman, is 300 cases a year. Another addition is the heavy rail charges to
Kimberley mentioned by Mr. Middelberg. Take ofi'the 12s, 6d. the Government getat
and it would cost the company of which I am chairman 42s. 6d. per case. — I can onlj
compliment the company on having a chairman like you.

What we want is that our shareholders should have the money they hsive
invested used to the best advantage. — ^To the detriment of the dynamite company ifl
the Transvaal.

I don't wish to tell you at the present moment to whose detriment — ^Yon •»
always accusing this company.

I am simply going to prove that we are paying too much for dynamita

Chairman.
You must not have arguments.

Mr. A. Phillip's Evidence. 389

Mr. Albu.

My idea is to prove that we have paid too much for dynamite, and in trying to conuih Mid for-
do this I BhaU only adopt fair means. Mr. Francis Oates, who is a director of the ^^J^for^
De-Been Company, was director of a dynamite factory in Cornwall called the Cosmos, °^^^-
which sold dynamite delivered on the mines in Cornwall at 30s. per case. We have,
farther, bought dynamite three or four years ago, at the time the Government gave
various merchants permits here, as low as 75s. a case, Qovemment receiving, I think,
88& per case duty. Isn't that so ? — I don't know.

You stated this morning that from 1894 to 1896 you, or the Qovemment, imporution of
imported 460,000 cases of material You don't mean machinery for the erection of ^£Sm*iS£
the dynamite factory, do you ? — ^I stated quite clearly gtthr impregnd •rf»J^

How is that possible ? We only use the gtthr impregn^ dynamite to about the
extent of 10 per cent. We mostly use here blasting gelatine, which has as an absorbent
kiesel gtthr. Now, if you have imported 460,000 cases of kiesel ^tthr impregn^, how
many cases of blasting gelatine have you imported ? — ^I have replied to Mr. Hay and
to Mr. Brochon. I said that gtthr impregn^ and blasting gelatine were both induded,
the latter in lumps.

What process do these lumps undergo after you receive them, to make them ready Prepantion of
for use on the mines ? — The best way to explain it would be to do as I have said 1 ^te**a Jd
shall be pleased if the Commission comes to the factory, and if they do that I will ^||j|£''L ^l
show you. Of course, I could give you a very long explanation now. toiy.

I don't want a technical explanation. What I wish to arrive at is whether
blasting gelatine, imported in lumps, is ready prepared for use — in a word, all the
W(M:k you do here is to make cartridges of it ? — ^That is where you are mistaken.

ijid your gtthr impregn^ is dynamite, and all you do is to make cartridges of it ?
—If you say so.

It is a well-known fact. What inducements did you hold out to the Qovemment The dynuDite
it the time they gave you this concession ? — I think that is a trying question. conoetrion.

I only want to know what quid pro quo you gave the Qovemment for the con-
ceBslon. — Wbat do you mean ?

The Netherlands Railway, for instance, has a concession to build railways. What
bave you done, or what are you doin^ ? — If you have read my statement

Yes, I have. — I think 1 said quite plainly that since the formation of the com-
pany took place, it has erected this factory in this republic.

You cannot tell me what are the manufactured prices of dynamite at Home. If Prioet of muu-
yoa don't wish to answer me, don't. I refer to dynamite, 75 per cent. — I don't know. Sito'to*^.

Can you tell me What it is here ? — I could. SSn^S

the

Of course, I cannot expect you to. — Certainly not.

Have you found the necessary ingredients in this country that you can use for Dynamite uigra-
dynamite ?— Oh, yes ; I have found sulphur. SSSl"''*''"'

Have you found saltpetre ? — Yes, there is some saltpetre, and kiesel gtthr also.

I mean, have you found any quantities that would justify your using them in the
Qianufacture of dynamite ? — Yes, sulphur.

How much have you found alreadv, may I ask ? — Of course, I cannot tell to a
Certainty, but I know that sulphur was lound in su£Scient quantities for us to use it.

To make 1,000 or 2,000 cases ?— Yea

I must tell you that answer is very trying to me. I want to put a practical
question. Have you found sulphur and saltpetre in this country in sufficient
qtiantities to make 5,000 cases in the month ? — I have found sufficient sulphur in
tliis <x>antry to make about 200,000 cases in the year.

390 Mr. A. Phillip's Evidence;

Why don't you make them then ? — Who tells you I don't ?

I tell you. You have told us you imported 466,000 cases in 1894 and 1896. — We
are now in 1897.

I am sorry if I have to contradict you. You cannot have found sulphur in this
country, or saltpetre, in sufficient quantities to make 200,000 cases a year. Before I
go any further, Mr. Vorstman is the purchaser of the djmamite ? — He is the (Govern-
ment's a^ent.

He IS not here ? — No.

Is he a director of the dynamite company ? — Yes.

Who is his alternate ?— Mr. Jorissen.

That is the gentleman close by you who is prompting you ? — ^That is the gentle-
man, but that he is prompting me I oo not know.
Capitalisation of Xhc Capital of the dynamite company is £450,000 ? — Yea

ri<Sin Expios-' What portion of this was fully paia up ? — I can tell you, but I do not see what

I am sorry to see you cannot see it. I only ask the question in the same way as
members of the Commission asked how much was paid for machinery. — If you draw a
comparison

No, no, I wish I could ; I wish mining was as profitable as dynamite. Can yon
tell me what the paid up-capital was ? — No, I won't tell you that either.

What was the consumption of explosives in the Transvaal in March ? — It was
about 16,000 cases.
Profit aiid divi- You say your company is only making eight per cent? — I said, up to 1895 we
of sSuth Atri^ have distributed a dividend of eight per cent

an Explosives May I ask, accordiug to the balance of 1896, what your profit was ? — ^The balance
sheet 18 not out yet

It is a similar case to the Netherlands railway. — If you read the Staatacaurant
you would see that the general meeting of this company will be held on the 28th
June, and on the 29th June I will m most happy to tell you what the company is
going to pay in dividends.

The Government Your compauy docs uot scud ordcrs Home to Nobel's ? — No.

^haaeotdj- And you don't make remittances in payment ? — It is the Government's agent who

namite. doCS it

Now, the new contract says : " The said company from the date of its formation
will take the place of the said L. Q. Vorstman in this contract, and will carry out all
his obligations as regards the Government in connection therewith." From this it
appears that Mr. Vorstman has nothing more to do with it ? — You can take it as you
like. I maintain what I say.

This is in the Chvemment Qnzettey signed by both the State Secretary and Mr.
Vorstman. How can you explain this article ? — I cannot explain it at all. I maintain
Mr. Vorstman is the Government's a^nt You have been asking me about the buying
of material and importing of material, and I maintain that the Government^ throng
their agent, Mr. Vorstman, do it
TheGovernment You Said in your statement that the Government received in 1896, £44,000 m
Jl^£**" ^y* royalty ? Now, if you have not published your balance sheet, and do not know what
the profit is approximately, how can the Government receive £44,000 as royalty f—
Because we pay royalty every three months. I do not know what that has got to do
with the question.

You mean the duty of 5a per case ? — I mean royalty.

There is a difference between royalty and import duty. What do you call that

Mr. A. Phillip's Evidence. 391

5a per case that the Government magnanimously receives ? The Cape Government
receives 12a 6A, and they call it duty. — I think the Cape Colony charges 2a Id.

That is for transit. Do you call that 5a royalty ? — If the Government imports it
I cannot call it duty.

Then the Government gets no duty on dynamite ? — ^The Government imports it

Is that royalty in order to permit the Government of the Transvaal to import
200,000 cases ? — I do not know what the object ia

Ah, now, you do know. It reads very peculiarly by talking about your profits. I
see your profits are only 8 per cent, for 1895, but if this agency company were to float
another htUe agency company they could make the profit show two per cent, or none
at alL — That is a very good idea.

We would do very well together;* only I would not get anything. Now you
make a point of this in your statement, that the Government s share does not seem to
be known. Well, it is pretty well known that the sale of explosives amounted to
about 176,000 cases, ana 5a per case on that comes to about £44,000. It is known
they receive 5a per case, and you most innocently say it does not seem to be known.
It IS known that the Government of the Transvaal receives a very small royalty, as
you call it. If the Government does not require that income, the price of explosives
ought to be reduced. You buy the pulp of the dynamite ofi* Nobers ? — No ; I buy it The paxdhtm of
from the Government here. djMmiteimip

From whom does the Government buy it ? — That is no business of mine.

From whom is the stuff bought ? — Nobel's Trust Company.

Nobel's sell it to the Government, and the Government sell it to the dynamite
factory in Pretoria, and the dynamite factory makes its payments to Nobel's. — Well, if
^oa liKe it so.

The Government agent sells it again to the dynamite factory ; the factory makes
out the aocouifts for the gold mininj^ companiea Now, does it not strike you that I
am justified in putting these questions to you, because the whole thing seems to be
involved. — What that has got to do with your grievances I do not see.

No, no; we have no grievancea Nobel's have a large interest in the dynamite connection of
factory of the Transvaal ?— I do not think I am quite entitled to reply to that r^^fy.
question. Are you a shareholder in our company ? nkmiteemjtory

I sincerely regret I am not. — In that case I am not going to give you any
information.

It has been proved beyond any doubt that Nobel's has underwritten 220,000
fully paid-up shares of £1. — Have you got it officially ?

Yes. — May I ask where you got it trom ?

Your own people have supplied these figurea — Before you proceed, as long as
you do not say whether it is official or where you got your information from, I
cannot vouch for all the figures you are going to quote.

Nobel

dealt wiui uiese z^u,i;uu snares f i ao not wisn w) pry mw your company

but it would help us very much if you answer my question. — ^I think it is unfair on

your part to examine me, when I have never had a chance to examine you on the

jnivste a&irs of your companiea

I have sat in the witness chair for two days, and the members of the Commission
examined me. I want to show you what a funny business it seems to laymen like
ourselvea Your dynamite factory is nothing else but an o&pring of Nobel's Nobers and th*
Company. So that Nobel's sells dynamite to the Government, the Government sells **"*** ^^"^
to the dynamite factory, practically selling it back again to Nobel's ; so that Nobel's

South AfrloMi
Explosives
Oompaqy.

392 Mr. A. Phillip's Evidence.

sells to Nobel's, and they try to make a profit on both sidea — ^If you want to prove it
to the Commission you don't require me.

If you do not wish to be questioned, I will give it up, and there was no necessity
for your appearing here. — I certainly did not appear to tell you all the ins and outs
of the company.

That I believe. I think the Commission kindly appointed me to try and find
out — I wish to give all information to the Qovemment.

If you give it to the Commision you give it to the Government You won't
answer who received the 230,000 shares ? — ^I am not entitled to tell it.

Do all these shares rank equally ? — Yea

For voting purposes ? — More or lesa There is a small difference.

Is it not a fact that Nobel's have the controlling power in your company ? — ^I
cannot reply to that question.

Have you any reason to believe that Nobel's are not interested in your factory
here ? — I have no reason to believe one thing or the other.
Cost of ereoting May I ask you what this factory cost at Modderf ontein ? — We have spent about

dynjunite he ^goQ^QOO OU it

Is that on building ; or does that include the ten months of material on hand ? —
Only the buildings.

I think you said £900,000 included ten months' material ; was it not so ? — ^I say
our capital outlay on the factory alone, without stock, is about £600,000.

Quite so. On page four, the Qovemment aeent informed the Commission of the

Raad that the cost of the factory to date, including the supply of material for ten

Costof iDAteriidB months, was £900,000. If the building cost you £600,000, as you say, then we may

for dynamite, reasonably conclude that ten months' supply cost you £300,000?— It all depends on

what you call stock.

Would you call stock the materials for ten months ? I would call it material for
ten months' supply of dynamite. I would call it gUhr impregn^, or blasting gelatine
in lump. — ^That is where you are mistaken. In this report, by material is meant salt-
petre, sulphur, glycerine, and timber.

That is not alone gUhr impregnd That is material for ten months. That is the
article for which we would have to pay £800,000 or £900,000. — ^If you want to buy
the factory.

No, I don't want to buv the factory. I mean the stock of materials in your boob
for ten months' supply. Ten months' supply of dynamite to the mining industry
amounts to about that Is that saltpetre and sulphur found in the Transvaal, or im*
ported ? — Not yet

Oh, it will be found, but it has not been found yet ? — ^You asked me whether this
was sulphur found in the Transvaal, and I say it has not yet been found.

No, it is imported stuff ? — Yea

Has the local company—your company — ever protested against the high prices
charged by Nobel's Trust ? Have you ever protestea against those prices ? — -We have
not got anything to do with it.

Oh, it is the Government that buys it ? — ^That is what I said bef ora
TnmsvMa Gov. Havc you reported the matter to the Qovemment, and told the Qovemment lihai
fS"S»«njite they are paying too high a price to Nobel's Trust ? — No.

Nohiri*'^**' You have not £ the Government bound to buy this stuff from Nobel's 1-^
Certainly not They can buy it wherever they like.

But you are bound to buy it from the Qovemment ? — Yes, according to oontnMSi

If you were not compelled, according to contract, to buy your material from thft

Mr. A. Phillip's Evidence. 393

Grovemment, could you manufacture dynamite cheaper here ? — ^That is a question I
have not gone into.

It has not interested you. You don't find it necessary to see whether you could ^^SSS'A''^
sou to the milling indnstty the same article at a cheaper i4te ?-The mining^ industry S^^'i'^
has dealt very kmdly with us up to the present. We would have done anything for Sostry. "* '"
them.

In which way has the mining industry treated you badly ? — " Bandly " was the
word I used.

Oh, kindly ! But that is a paradox. — You perfectly understand that the minins:
indnstr^ has iJeen fighting this company from th^ begiiiing.

No, I beg to diner from you. — Since I have been in this country they have been.

And you think that is the reason you must get your pound of flesh ? — Well, that
is not quite correct^ because you know perfectly well we are entitled, according to our
contract, to charge 95a per case of dynamite No. 1, and we only charge 85a

May I ask why is this kindness done ? — To tell you frankly, that is no business
of youra That is a C[uedtion for us to decide. I only want to mention we have done
more for the mining industry than they have done for ua

But I am surprised. You are a director of the dynamite factory ; and you com-
plain of the small profits you are making. — I beg your pardon. I never complained
of the small profit.

But I beg your pardon —

Chairman.

I have already made the remark that Mr. Albu's questions, and Mr. Phillip's '^Ji^ScmSMr
replies do not bring us an inch further in the direction of solving the question. I rauip.
think it is better for Mr. Albu to confine himself to the case itself. Our only object
is to find out whether djmamite can be supplied here cheaper, and any questions that
are put as to the factory here, might be whether, under the present contract, there is a
possibility of getting a reduction from the factoiy; what their mode of importation
IS ; what is the mode of working or preparing the stuff here ; what is the consumption
required ; does the factory sup^y the demand ; is the dynamite delivered of good
Quality. If, through the said means, it can be shown that the dynamite can be
delivered here cheaper, everybody will agree that it is not a question for us to solve
here. What is to be done in future with the company and the factory will be dealt
with in committee before we make our report to the Qovemment. I think Mr. Albu
is entering upon matters which only concern the company themselves. Supposing
every question is answered which Mr. Albu has asked, it does not help us a bit further.

Mr. Alhu.

Well, Mr. Phillip, you have heard the statements made by various witnesses as ^^r^SLSteT
to the price of dynamite at Home, offers received, and so forth. You would say, of
Course, it is impossible ; these gentlemen are mistaken ; or what would you answer ? —
What I have said before : I don't know anything about European prices.

You only know about the prices in Australia, British India, and Rhodesia. I
Really don't know what more questions I can ask you. Mr. Chairman, it is impossible
if you stop me. Statements have been made to the Commission by so many witnesses
that dynamite can be imported cheaper. I can show to the Commission that a certain
Company, of which I am chairman, paid 55a per case, and paid to the Government
12& 6d. duty, so it would be a fallacy on my part, or on the Cfommission's part, to try
to elicit a statement from Mr. Phillip whether dynamite can be made cheaper, or
imported cheaper than he does it. He would say no ; his article is the cheapest

394 Mr. A. Phillip's Evidence.

Chairman.

It is a question for the Commission to decide later on. It is not for us to say at
the present moment what we can exact, or what we cannot exact. The Commission
must decide in committee.

Mr. Albu,

The task, I mean, is quite useless, because I do not expect for one moment Mr.
Phillip will prove to me he can import dynamite at 35s. per case.

Mr. Smit

To come to conclusions can only be done by the Commission, when they are in
committee.

Mr. Albu.

But, Mr. Chairman, is it not necessary for me to elicit certain facts, so that the
members of the Commission can weigh the various questions and answers, and deduct
from them their conclusiona

Mr. Smit

1 don't object to your questions. They are very good, but no argument should
follow. The time has not come for argument yet.

Mr. AUm.

^an^S^oiliveB There is one question as to the royalty to Government. This is 58. per caea

Company «id You say in your statement, Mr. Phillip, with regard to the profit, " The balance-sheet

Lmite mater* for 1895 produccd a dividend of 8 per cent, per annum, so that the profits of our com-

**^ pany cannot be so abnormal as people try to make out" You see this is a direct

accusation against the people who try to make out that they are paying too much for

their dynamite. You tell us, in fact, this deplorable state of thmgs exists, that you

only make 8 per cent, for 1895, and yet you, as a director, have not tried to induce the

Government to buy the supply elsewhere. It is quite possible. As a director, would

you not try to induce the people who supply you with the ingredients to buy them in

a cheaper market so that you might increajse your dividends or meet your customers

by a reduction of price ? — You know perfectly well dynamite is not like sugar-cane,

for instance. If you want a good quality of dynamite you must get it at the best

place. That is the case with ua

And Nobel's is the best place ? — As far as I know.
And the cheapest place ? — I tell you that is no business of mine.
I ask you as a director of the dynamite factory. I know it is no business of
yours. — I am a director of the Dynamite Company in the Transvaal
American dyna- You Say you bought American dynamite m 1894 ? — ^Yes.
""**• And it resulted in a complete failure ? — Yea

May I ask where the test was made ? — ^At our factory.
At your factory. But you did not test it in the mines here ? — It was too dangerous
to send it out of the factory ; the nitro-glycerine was exuding.
America is a big mining country too, is it not ? — I think so.
Quartz mines mostly ? And they get along with their dynamite, don't they ?—
They have to, because they have got such heavy protective duty, nobody else cso get
their's in there.

But they manufacture their dynamite themselves ? — ^If they cannot import it
they have to make it

Mr. A. Phillip's Evidence. 395

They have got large saltpetre beds, have they not ? Where do they get their
sulphur from ? — I have never been in the States.

You acted in a like capacity as you do here in Mexico ? — No ; I told you no. I
have told you I have been an aeent in Mexico.

A dynamite agent ? — Yes, m Mexico.

And here in what capacity do you act ? — Here I am director of the company
called the South African Fabrieken.

You deny that dynamite is supplied to De Beers at 57s. 6d. ? — I have said so. p»J^ «' <Jyn»"

If I were to bring it to you in writing from De Beers Company, would you still Been. *
contradict it ? — I think we can get along much better if you explain for what kind of
dynamite they pay that price.

It is for 75 per cent, dynamite. — Then the only thing I can say is that I am very
badly informed.

And the directors of De Beers told me they could get it for less. — All you people
in Johannesburg say the same thing.

Is it not sufficient if we get it for 37a 6d., and pay the Government 12s. 6d. ? We
would be quite content if we get it even down so far. — As the Chairman said, that is
a question for the Commission to resolve.

Well, I thought you might know these things. — According to my contract, I can The Government
charge up to that price. If I do that, no one can blame me. S^°^***^

Of course not. But the concession was granted on the condition that you
manufacture the dynamite here ? — That is what we do.

That is what you don't do. — How not ? Have you read the contract I made with the
Government?

Who has got it — Mr. Vorstman or yourself ? — Mr. Vorstman got the contract.

To manufacture or to sell ? — That is where the point comes in. The contract
was " for the carrying out of the State monopoly for the making, selling, negotiating
in, and the importation and exportation of powder, ammunition, dynamite, and all
other explosives." This contract was transferred to the Company now existing.

Before Mr. Vorstman had this contract who had it ? — ^I don't know. That is not
a question for me.

Mr. Vorstman got this contract ? —

Cfiaimian,

We have got nothing to do with who had the contract before the present Mr. vontman,
contract. — This contract was transferred to the present company for the execution of buy".""®"*
the State monopoly for the manufacture and selling of explosives here, and the
buying was given to the Government's agent, Mr. Vorstman.

Mr. AUm.

The buying ? — Yes. It was given to Mr. Vorstman, and he transferred it to the
* company.

Now, you state that your factory is large enough to manufacture 80,000 cases a Quantity of dy-

•*^«« 9 A^A «v.^«A ^ o o namlte nianu-

.year? — And more. tmctnnd per

Since when has the factory been completed ? — We commenced the factory in »n°w™-
October, 1896.

How much have you manufactured since October, 1896 ? — ^About 40,000 cases.

And the requirements would be about 136,000. And the glihr impregn^ ? — We ^^\'Je*^' Jfj;
have manufactured out of our own nitro-glycerine we make here. quiredaanuAiiy

Do you make the sulphuric acid here ? — Everything. We make the nitric acid, d>mmSSemAt^
the nitro-glycerine, the dynamite, and blasting gelatine here. erijiiinTrMM.

396 Mr. A. Phillip's Evidence.

""SKS^Sma? ^^^ make the nitro-glycerine and sulphuric acid here. You import sulphur ?-

erUdt. Yes.

You import the saltpetre ? — ^Yes.

You import the glycerine ? — ^Yes.

You import the gtthr ? — Yes.

You import the cotton ? — Yes.

Then, what on earth do you make here ? — ^I make the dynamite.

Now, you admit you import all these things. You have to pay freight oi
sulphur, on saltpetre, on glycerine, on glihr, and on the cotton. You have to pa;
yoUr workmen about three or four times as much as you pay them at Home. No^
you import all these articles. Where does the advanta^ come in to the country
What aidvantage has the country got ? — What is the advantage to a country of an;
industry ?

We don't want to go in for political economy. You might answer the question

Have not engineering firms the same right to say that they manufacture engines here

They import all the parts, and only put them together here. What I wish to show U

the Commission is that, with the very best intentions, what you have executed lately

of making 40,000 cases, surely must have been made at a much higher cost than tha

compftntive ex- at which you could import them ? May I ask you what it costs to make blastinj

pSSttg*** and gelatine here ? — Well, I am certainly not going to reply to that* I am not going U.

jMm^cturing a^]j yQyj^ what your cost price is, if you manufactured anything here.

But if someone has got to buy an article, he will know what it costa at home and
here. I assert that dynamite No. 1 A, 75 per cent., costs at the factory at Home, 18& 6cL
per case. — May I ask you what you know about dynamite.

Well, I have never manufactured any. — Because you are talking of dynamita
No. ] and No. 1a.

I am talking of No. 1. — ^Then you must not talk of No. lA.

I mean 75 per cent, dynamite, costing 18s. 6d. at Home. I say if you manufactnie

it here it costs you over 60a Blasting gelatine costs at Home 50 per cent more thaa

oomiMMtive ex- the manufacture of 75 per cent, dynamite, and it will cost you more than 50 per cent

pSSng^'and here to manufacture gelatine. But you say you have not manufactured olasting

^ItoS!"'*"^ gelatine here ? — Oh yes ; we make it.

Will it surprise you to hear that one of the leading chemists here says that, with
the appliances which you have got at the factory, it is absolutely impossible to make
blasting gelatine here at anything like a reasonable price ? — I suppose that is one of
the chemists we discharged.

That must have been a misleading chemist. I am speaking of a leading chemist
— Is he an expert in djmamite ?

Yes, he is. — Would you mind telling me his name ?

I don't know whether I am at liberty to tell you his name. — In those circnm-
stances, I maintain he does not know much about dynamite.

But it appeals to the common-sense of everybody. You have to import all the
ingredients and all your workmen, so that it must cost you very much more than they
Manufcigture of can make it for at Home. You also manufacture powder ? — ^Yes.
South AfricaJ In large quantities ? — It depends on what you call large quantitiea
oompany!^*'' Is there any sale for powder in this country? — What sort of powder do yoo
mean ?

Gunpowder. — There is a pretty good demand for it.

Do you supply the Transvaal Government with gunpowder ? — ^Yes ; I do.

Why is it then that. they import all their cartridges? — ^You had better ask tfa» .
Government.

Mr. A. Phillip's Evidence 397

They cannot make csartridgOB here, can they ? — Well, I make them. ''SJSS^ b?

Yon import detonators ?— Well, yon can't call them detonators. Ton mean the south African

^^0 Explosives

cap ? OompMiy.

Yes. And you import the bullets ? — Sometimea
Then you fill them with powder ? — That is the principal part of it.
Then why does not the Government buy their supply off you ? — You had better
ask the Qovemment.

It is strange to say these cartridges are manufactured here.

Chairman.
Tliat has nothing to do with the mining industry.

Mr. AUm,

Where do you procure your raw material for powder ? — Partly in this country and Msnut^toeMd
partly elsewhere. nuSeriAis^^^ior

Which Transvaal product do you use for the powder ? — Charcoal We make it p*^'^*'-
<mr8elve&

Do you sell your cartridges to the burghers ? — I do.

Chairman.
That has nothing co do with the mining community.

Mr. Albu.

It affects the question so much that when the concession was granted it was

S)mted out what enormous advantages they would have through it in the case of war.
ow we find the Qovemment is even importing powder too.

Cfuiirman.
I suppose the Government has its own wise reasons for that.

Mr. Albu.

Oh, yes ! You are the sole agent for selling detonators ? — ^Yea The price of de-

You cannot tell what they cost in Europe ? We pay 4s. a case. — No. tonatow.

When we had an open market for detonators we paid 3a — I don't know the price
«nd cannot tell you.

Can you tell us why Lewis and Marks draw this royalty on dynamite ? — ^I think
you had better ask Lewis and Marks about it.

I know I should get the information from them, but I thought you might know
as a director of the dynamite company. — I am a director of the present dynamite
company.

Chairmxin.

The question of cheap dynamite is considered by the mines to be a vitEil question,
«nd theremre we must try and find out as much as possible, to see how far it is possible
to meet the mines and give them cheap djmamite. Several questions Mr. Albu put to Mr. Phuiip's le-
jrou, you have not replied to. In several cases you have said that the case rests with ^ o^nSs
the Government I have myself found that Mr. Albu has, perhaps, put some questions ^on-
to you, which you were under no obligation to reply to. But there is one question
%pon which I want to have an answer from you. You say the Government purchased,
^and not the company. The Government of course have a person who conducts the

398 Mr. A. Phillip's Evidence.

sale for them, though I thought it was done through the company, and since you are

a director of the company I thought that you were the person to give us the

information on this point. Now I only want to know from you who is the person

**the^°^?JJS* who buys for the Government ? — It is the Government agent, Mr. Vorstman.

Rw^ti^e^ po8- ^^ consequently I must draw the deduction that the company has not yet taken

uions of ^r. the positiou that Mr. Vorstman had in the original contract ? — It is so aifficult to

0° thT*south explain. I know that Mr. Vorstman has always been entrusted with the buying of

pImWm c^m- ^^^ material. Of course it is practically the company, so there is some difference, but

pany how this originated I really cannot say. Mr. Vorstman is the Government agent for

buying.

of dynamite Then you further said that you could not state the price in Europe, and at what

price it could be delivered here. It does not concern you very much, because, as long
as you remain within the terms of your contract you consider you have fulfilled your
obligations. In the contract there is a maximum price of 95s. per case, and if you sell
at 85s. you mean you are within the boundaries of your contract ? I must say on that
point that I am astonished that the company here, which has to import, is not aware
of the price at the place from whence it imports dynamite. The contract does not
fix a minimum price, and you will agree if you sell at a lower price, and still make the
same profit as at present, that will then be in favour of the consumer. And I have
always thought that any man of business should study the interests of the consumer.
I, therefore, think that you ought to be cognisant — although you buy for the
Government — that you at any time can advise the Government when the Government
ask for advice, and I hope you will still be able to do it when called upon, and to say
whether you can deliver it cheaper here and sell it cheaper, for against you we hav^
got very strong evidence from the other side, which I must take to be true, which 8ay»
dynamite can be landed here for so much less than at present — May I make one
remark. It must not be lost sight of that the Government is importing for us, and
during the time we had to build factories, and the contract stipulates that as soon as
the factories are ready and cover the whole of the requirements of the country, then,
the importation would stop, except in case of accidents which are beyond our control
That is the reason why the company has not fixed their attention on the European
price so much. Its importation period will soon be ended, and then all the dynamite
or explosives will be made in this country.
Future iiMort- That docs uot throw light on the case from my point of view. In October, 1896*
mite *and^°of your factory was finished, and you say you now make dynamite here ; I now under-
{J7th^M!^(^ stand from you that the time will arrive that the importation of the materials from
which dynamite is manufactured will stop. — Yes, and I think I can promise in about
a year or a year and a half, if the consumption remains as it is to-day, I will be able
to produce the whole requirements of the country.

By material f oimd in the country ^ — ^Ah, that is another question.

That is the point I put to you. If all the material has to be imported it does not
bring us any further ? — As soon as I am able to produce the whole requirements of the
country, then gtthr irapregn^ does not play any part in the importation. Then thecHily
thing I will import will be saltpetre, sulphur, glycerine, a little gUhr, and a few articks
which I cannot find in this country in sufficient quantities. I am making experiments,,
and I think I can get the whole of the sulphur in the country. Of course I must
import a certain quantity of sulphur to have a reserve. As to saltpetre, I cannot find
sufficient quantities in this country.

^'mSeSd ' 7^^ "^^ come back to the question with reference to the importation of the material
dynamite. °^ required for dynamite. Is the company bound to buy that stuff from Nobel'Sy or

Mr. A. Phillip's Evidence. 899

you free to buy it from any other manufacturer ? — I suppose you refer to the raw
material ?

Yes, the 466,000 casea — That, of course, the Government buys. In connection
therewith, I would like to say, and could not before explain, or did not recollect at the
moment, how it was that Mr. Vorstman was Government agent for buying these raw Mr. vorstman
materiaLs. I have remembered since that there exists a letter from the Government SSning^ES^lJ^
appointing Mr. Vorstman and Mr. Klimke together as agents to buy the raw materials, ctovernm^en t
I cannot remember the date. It must have oeen before the time I became a director Agents.
of the company.

So you cannot answer the question ? — No.

Can you tell how many cases of dynamite were manufactured at the factory out Quantity ot d3
of the 466,000 cases of raw material ?— I find that during the period from June, 1894 S^^tol^Tom
to October, 1896, we sold 340,000 cases. Sfi^u^ ?rom

Can you state the cost price of one of those 466,000 cases ? — Well, of course the June, isoi, to
Government keeps the invoices, and I cannot tell. October, i8»6.

You are wrong there, Mr. Phillip. The Government does not buy and does not
sell. The Government have the right to do so, but they do it through other people.
The Government buy nothing, sell nothing, and keep no books. — I really do not know
the cost price.

I have no more questions to put, but I wish to point out that in dealing with this
question you must not lose sight of several facts — ^m the first place, that it is to the
interest of the coimtry certainly to keep manufactories going here. The dynamite
factory, for its origin and existence, depends upon the mining industry, and so we The djTiamite
have to try to regulate it in such a manner that through the existence of the mining^ndus^
dynamite factory in our country the mining industry may not be injured, but should *^*
be benefited. And in this case you must keep the interests of the company itself in
view ; and if now it really appears to us that it may be through the fault on the part
of the Government in grantmg such a concession, or it may be the fault of the
company that they cannot carry out the concession on a cheaper basis, then it is our
duty to try that the Government or company should find a way by which dynamite
can be dehvered cheaper at the mines here ? — May I add that I can ask the Govern-
ment to give all the prices required. I have not got them.

Mr. Brakhan.

What commission does Mr. lippert draw on detonators ? — I think it is 5 per cent. Mr. Lippert's
Is it not 7 per cent. ? — It may be 7. I am not quite certain. detonatonk ^"

Do you manufacture detonators in the Transvaal ? — No. We have made a Manutecture of

proposition to the Government, but we have foimd that the climatic conditions of this <ie*o°»*o"-

country would render the manufacture of detonators too dangeroua

Then you import all the supplies of detonators ? — No, I don't import them. importation of

Well, who imports them ? — ^The company imports, but not all suppliea There * °*
were permits given out some time ago by the Government. It must be 8.bout three
years ago, and on these permits they are still importing detonators into this coimtry.
That is, merchants are importing.

Now, what do detonators cost in quantities in Europe ? — I really cannot tell you. p^ce of deton-

I mean I did not prepare myself for detonators in the least. •***"*

Well, it goes very closely hand-in-hand with dynamite ? — In some respects it
does ; in others it does not.

What is your selling price here for No. 6 detonators ? — I can get you these
figures in the afternoon.

400 Mr. A. Phillip's Evidence.

* ■ ■ ^

Is it not 4s ? That is what I gather from an account I saw. — ^I have not got the
figurea

If the market was open, as it was formerly, we could buy detonators at 3a, No. 6,
and that has no doubt left a good profit to the merchant In that case the mining
industry would save on detonators alone £72,000 a year ? — The only thing I can say
is that this company does not sell all the requirements of detonators for the reason I
explained, so in accusing the company of charging too much for detonators I don't
thmk there is much foundation for that. We have tried to stop the permit system.
The permits are valid as long as the total amount for which the permit is given is not
written off. Under the permit they are allowed to import so many casea Every
time the cases are imported they are written off, and until the whole amount is
written ofi* the permit holders are still allowed to import.

But the biggest quantity is supplied by the company ? — I am sorry to say no. I
don't think so. I have not got the figures of the detonators supplied during 1896,
but I can give you them in the afternoon.
BuropjM^FAsee I say from the evidence brought before the Commission as to dynamite supplied
' to De Beers, that the price paid leaves a large profit in Europe. Yet there is no
doubt that this surplus might be materially increased if there was free trade in
dynamite ? — You will get all the information from the Government as soon as Uie
Commission, which has been appointed to investigate specially this question, has
handed in their report.

Personally, I cannot help saying that I am very surprised that the company
should not be able to give to the Commission the cost price which they, in terms of
the contract with the Government, pay in Europe for the dynamite which they
import, and for the raw material. — All the members of the Commission have
expressed their surprise that I don't know the European price. I have given you a
declaration under oath, and I am sorry to say I don't Know the European price.

Mr. Fierce,

**toli»wmj5eJ- ^^"^ y^^ ^^ ^^ price at which the Government agent brings in the raw
iaifl for dyna- material here ? — The Government agent imports the materials for the Government
™***' He keeps all the invoices, with freight expenses, etc. The invoices he hands in to the

Government.

Then the Government hands over the stufi* to you as it arrives ? — Yea

TheGoverament You get a Certain amount of raw material at the factory. Whom do you pay for

AW^IxpS*. ^^^ ? — According to the contract we have to hand in the product of the sales to the

Bives Company Government We do not pay for the raw material delivered to us by the Government

agent. The product of the sales is handed to the Government, who retains the oric;inal

amount and returns us our expenses, and so on. It is mentioned in the contract what

the Government retains — that is 5s. each case, and 20 per cent, of the surplus profit,

while the Government relieves the agent of any special tax.

You invoice No. 1 dynamite at 85s. Do I understand you hand over the whole
of that to the Government ? — Well, practically we do, and receive a certain amount
back. We do not carry that arrangement out to the letter, because it would be too
complicated. We render an account every three months of what we have sold.

Then you do not know how much you receive ? — No.

The Government receive 5a a case. Then I take it you receive the remaining
80s. per case, less, of course, the original cost of the raw material ? — I refer yon to
our last balance-sheet for 1895. There we have made a profit at the rate of 8 per
cent, per annum. I may tell you that from the formation of the company in IBM Up

Mr. A. Phillip's Evidence. 40i

to the end of 1895 we paid to the Government about £48,000 royalty. We made a
net profit of £58,000.

I want to know what the raw material costs delivered here ? — I don't get the Priceofimpoited
European account The Government tells us, through the Government agent, so ZT^^n^^
many cases have arrived. The Government agent says, " You owe so much for thia"

Yes, that is what I want to know. How much do you pay for it, including
freight, and everything, delivered at the factory through the Government agent ? — -1
have not got those figures.

You referred to the balance-sheet of 1895. Can you put in a copy of that at
all ? — ^Yes, but I have not ffot it with me. I can send it to the Commission. You
have the report of the Volksraad Commission.

But we are investigating the matter now.

Mr. Brochon.

Where is the head office of your company ? — At Pretoria.

You do not know anything about the profits of 1896 ? — ^That I did not say. I proflu of south
said to Mr. Albu yesterday that our general shareholders' meeting will be held on the pl^^ c^I
28th June, and on the 29th June I will be at liberty to tell you what profits we have. i»nyfori89e.

I do not Ask what your profit was, but vou have made your payments to the
Ciovemment, and I do not see how the holding of your general meeting of share-
holders can alter these figures ? — I do not say we are going to alter figures.

How many pounds, shillings, and pence have you given to the uovemment last
jrear ? — ^I can send you these figures from Pretoria.

You said yesterday that you expected to find the materials in this country for importation of
the manufacture of dynamite ? — I do not remember having said that I was going to {JJd"***k?*
find all the raw material in this country. I have said that, according to my ideas,
there is sufficient sulphur in the country, but not saltpetre.

Now you are importing all these raw materials ? — Yea

Can you tell me what is the weight of raw material you import for making, say,
« ton of dynamite ? — You know a£)ut the manufacture of dynamite. There is
^alt^tre, sulphur, glycerine, then you have all the bye-products, nitrate of potash,
«oda, chalk, ochre, and then your boxes, nails, eta

What do you reckon, about, is the weight of these materials that go to the manu-
facture of a ton of dynamite— do you think it is six tons ? — For argument's sake I
will accept your figure of six tons as true.

That is a very important point, because, if we make a calculation of the transport coet of import*
we have to pay on about six tons instead of one ton of dynamite if it were imported jjf ^-wJmite
prepared, you will see it is a wrong speculation. — If you take any dynamite industry ^*» ^^^
in Europe, it has to import most of the raw materiala In England don't you import
saltpetre, sulphur, and glycerine ? In Germany where do you find saltpetre ? Even
in France you import glycerine.

Transport by sea is not heavy ; we all know you must import saltpetre, but what
18 very expensive is the transport from Delagoa Bay to the factory. — Don't you say it
is a wrong speculation ?

In Germany and France we pay 20 and 25 sous per day to girls we employ, and
you pay ten times as much here ? — No, we employ kamrs and machinery.

You told us you expected to find some sulphur here ; will you kindly tell us
ivhether it is free sulphur, or sulphur in pyrites? — At present it is only in pyrites ; QuautyofTrana-
we have got pyrites containing between 38 and 40 per cent, of sulphur. vaai sulphur.

When the pyrites contain less than 45 per cent, it is not a mercantile one ? We
Icnow that if you bum pyrites which carry less than 45 per cent, of sulphur you have

402 Mr. A. Phillip's Evidence.

a lot of difficulties to contend with ? — I am not a chemist I have not studied dynamite*
technically, and I go by what my chemist tells me. Our general works' manager is a.
man of very great experience in dynamite and everything connected with it, and he
has told me that, as long as pyrites contain 38 or 40 per cent of sulphur, he is quite
satisfied to take all the pyrites you can bring to the factory.

Have you practical proof, or is it only laboratory experiments ? — Practical proof
on a large scale.

Well, I am very much surprised at it. Where in this country do you get pyrites
with 38 per cent of sulphur? It must be very pure? — Well, I get it from,
Johannesburg.

If you get it in Johannesburg it must be an exception, because we know very
well what kind of concentrates we are treating, and we know we cannot get con-
centrates which carry 75 per cent of pyrites. You must have a very small quantity t
— We are promised any amount.

Mr. AU>u,

■

You say your head office is in Pretoria ? — Yes.
Nobers and the You keep your share register there ? — Yes.

Exp^ioswt^ Y^^ ^o ^^^ know whether my allegations were correct, that Nobel's have
Company. 220,000 sharcs in your company ? — I did not say whether I knew it or not, I say
it has nothing to do with the case, and prefer not to reply to it

Don't you think that the deduction which people will make on hearing that
answer will be very disadvantageous to yourself ? — Mr. Albu, whatever I may say to-
this Commission, as soon as the public gets hold of it they are going to draw all sorts-
of conclusions, whether I reply or whether I do not reply. Public opinion is against
me, I know.
Transvaal sui- Your statement that you find sufficient sulphur in this country to make two or

P*^^'- three hundred thousand cases of dynamite, might lead people to think they are

listening to stories of Jules Verne. — I do not say this in order to show that I care what
the public thinks of it. The question was asked, and I replied to it. If other
questions do not suit me on account of my private interest in the company, I am not
going to reply.
Nobel's and the You prefer uot to auswcr whether Nobel's are registered for a large amount of

Expioswts shares in your property ? — About the share register I simply deny any information.
Company. you scc the questiou is very important The Government agent buys the^

The purehaBe of material, etc., from Nobel's ; the dynamite factory buys it from the Government's.
dgmuButemat- g^g^jj^.^ ^j^q happens to be, practically speaking, the same man ; and my contention ia.
that this dynamite factory is nobody's but NobeFs, and the mining industry buys at
an enormously high figure. You do not know the profits for 1896, or at least you
do not want to tell us ? — You are under a wrong impression. I said the
The Government Government sold US material. I expressed myself wrongly. I think you gathered
African e\. from the replies I have ^ven of how the transactions are made, that the Government
piMives Com- g^j^ ^^ ^j^^ material. The Government does not make any profit on the tsansactioD,.
it transfers the materials to the company.

You know the whole thing would be a very good subject for Gilbert, the author.
For this Commission it is sufficient to know that dynamite is sold at Home at 238., and
that this enormous interest is to pay 85s. Where does the difference go to ? Some-
body must make the profit — I do not know what European prices are. I have not seea
the offers the mining industry has been bragging about for the last six months. I hava
seen by the evidence given by Mr. Jennings the other day, he gives prices of American,
dynamite, and works it out at certain prices laid down in JohannesDurg. If I takehu*

Mr. A. Phillip's Evidence. 403

firares, I arrive at a much higher fissure in Johannesburg:. With the incidental charg^es European and

•11 ^ J 'i J. 11 '11 X J- • i_ R*nd prices

you Will find it eventually will cost twice as much. for dynamite.

If you take the figures of Mr. Jennings, and you add your factory charges and
other little leakages, then you might have a higher price than now. We recognise ^^®J|l\vnJ?a" d
that Nobel's Trust is a very strong corporation, and it may be interesting to you if I the price of
read an extract from a letter I have received from Vienna, where the mining industry **y°*°^*®-
is trying to get dynamite reduced, not from 85s. per ca^se, but from 26s. per case.
They tried to get a reduction, and Nobel's ring would not entertain the proposal. The
lesrdt was that the gentlemen concerned combined to form a company and to build
their own factory. They were backed by two of the most eminent bankers on the
Continent, and it was agreed that only cost price would be charged, and that any profit
arising should be returned to those interested in the mines. Their grievances are not
85s. per case, but only 26s. — What is the consumption of that country ?

I have no idea ; but Austria is one of the largest mining countries in the world. —
Do you think you can run a dynamite factory without making a profit ?

This is quite a mutual arrangement, and one I suggested to this country five years
ago. But, in the case I have mentioned, the interesting portion is contained in a letter
I read, dated April 23, to the effect that Nobel's, in order to prevent the erection of a
new factory, have made considerable concessions to the mining industry. Now, if you
could manufacture dynamite which could reasonably compete with that manufactured
at Home, or if you had imported dynamite and sold it to the industry at a reasonable
figure, I for one would never have taken up this position. But to be squeezed, as it
were, to pay 85s. for an article sold at Home for 23s., that is more than the mining
industry can stand. — What do you call reasonable prices ?

That is a thing I cannot go into.

Mr. Hay,

Prior to the dynamite explosion you admitted that the price of dynamite was Transport chaw-
fixed at the magazine at 85s., and that the delivery to the companies is about 6d. per JJ^f^^!
case. What did it cost you to transport the dynamite from your factory to the
magazine in Johannesburg? — At that time we had to transport the dynamite from the
old factory by rail, and I think the cost of transport came out at about 5s. per case.

The conclusion arrived at is that, since the explosion dynamite has been increased
to the mines by a shilling per case, and that is additional profit. What is the cost of
your magazines ? — Magazines as we build them, underground, cost £250 ea<2h.

What is the interest on £250 ? — About 6 per cent, £15 per year.

How many cases of dynamite can be stored in the magazine ? — Say about 2,000

It would, therefore, be fair to assume, if you take it for 12 months, that 12,000
cases of dynamite pass through that factory, and you save £600. — You start from a
wrong principle. You say this belongs to you, and I say it belongs to me.

1 want to get a straightforward answer to a straightforward question. Since the
explosion your company has profited Is. per case more than they did prior to the
explosion ? — Not exactly. We have to carry our stock from Leeuwf ontein to our new
factory. After the explosion we were ordered to clear the magazines, and in order to
be close to the mining industry we established magazines on our factory. We had
therefore to transport the stock from Leeuwfontein to our old factory, which means
the same as if we had brought it to Johannesburg.

Yotir contract is 85& at the magazine, and smce the explosion you have made us
pay la mora The Is. you save you do not give to us. As managing director of this
company it is your duty to make the best possible profit you can for your share-

404 Mr. A. Phillip's Evidence.

holders. Tou also see that the profit is made as much as possible, because 20 per
cent, ^oes to the Qovemment, aiter 8 per cent has been paid, as well as sundry
ckwtprioe of reductions. Is it not your duty to see that the material required is bought in the
mltettAtSSlr cheapest possible market ? — What do you mean by the cheapest market ?

The question is simple enough. The terms of the contract are that you erect the
factory, and the Qovemment gets 20 per cent, of the profits, and that the books be
kept in a proper mercantile manner, and the Government shall have the light at
times to Iook into them, so that they have some control over the manufacture, and so
that the Qovemment may see that they get the 20 per cent. Now, as managing
director of this company, should you not see that the goods are bought at the cheapest
possible price ? — I don't quite agree with you.

Then will you explain your duty as managing director ? — Yea My duties are
first to look after the safety of the people in the factory and then to turn out a first-
rate explosive. It is the duty of the Government's agent to buy the material in the
best market.

No, no. I don't want the Government agent, I will come to that by-and-bye.
You are in charge of this factory, and you have to get the material from the
The quality of Govemmeut agent. Is it not your duty then, as the head of this institution, to see
iSSte^ter- ^^^^ you get good articles at the best possible price ? — Yes.
*»^ Then can you tell me whether you get good quality ? — Yes.

importSi *^dy- Can you tell me the price it has been supplied at ? — I can tell you the cost price
namite mater- q^ ^j^^ factory, and I dou't feel entitled to give that price away.

The Government is entitled to 20 per cent, and, representing the Government^ I
want to see that they are getting the right amount — I would suggest that a special
commission be appointed by the Government

That is the best thing we could have. Can you tell us now whether you get the
goods at the best possible price ? Are you satisfied, as managing director, that these
materials are bought in the best possible market, having regard to quality ? — ^Yee; I
am quite satisfied.

Do you pay the Government or the Government agent when the material is
delivered at your factory? Does the Government agent furnish you with the invoice?
— Yes.

The agent pays expenses of transit and insurances and cost of the material, and
you pay him ; tnerefore, you must know the cost of the material in Europe approxi-
mately ? — Yes ; approximately.

Then you do not know whether the Goverment agent supplies you with the
goods at the cost price ? — He has to.

How do you know ? — According to the contract.

How do you know whether he is fulfilling it ? — I have good faith in him.

You test the quality when you get it ? — Not exactly. Dynamite is an article
that you can buy to-day and to-morrow. During our building period the Govern-
ment imported large quantities, — I mean larger quantities than any factory in Europe
could supply.

You don't exercise any control over the 466,000 cases of material brought in

during the past 18 months. You don't exercise any check over anything whatever?

— It is no business of mine.

The purch^ of These goods are bought through Nobel's Dynamite Trust, and if they charge

eriaisond No- twicc as much for anything, you pay it and reduce the profit of the company, and the

bd^ynamite gj-^g^ ^^g ^ ^j^e Government is also reduced. Therefore, the factory is iNobel and

Company. That does not show that the goods are bought in the best possible market^

Mr. A. Phillip's Evidence. 405

for the profit may have been made larger than 80 per cent.? — ^What is the best "Jjj^^^jg^

market ? mite mlteriato

The best market is where you can get the best goods at the cheapest price. — I
don't know the price in Europe.

Tou should see, in your position of managing director, that the State is protected,
by buying in the best possible way. The fact is, you have to buy from Nobel's and charge
OS the highest possible price. Now, suppose the Government agent delivers goods of "^^ pJ!^*'^ ®'
the value of £350: Do you give him £350? — We pay it to the account of the ^J^**""**"
Government.

First of all you buy the material from the Government agent. Does he give you
an invoice ? — ^I credit the Government with the amount received, and then I hand in
an account for the sales I have made, and after deducting my expenses the Govern-
ment gets 5s.

iTow, I have a few simple questions. If you will give me simple answers we TheCtovernment
will soon get through. Who is the Government agent ? — Mr. Vorstman. ^*'^^'

Where is Mr. Vorstman now ? — In Europe.

How long has he been in Europe ? — He left on the 31st March.

Who acts for him now ? — Well, to tell the truth, I don't know. I was not here
when he left. I don't think there is an acting Government agent, because Mr.
Vorstman intends to return very soon.

Then how does this thing work now ? You have told us that the Government
agent orders the goods and hands them over to you. Who does that when Mr.
Vorstman is away ? — The company does it.

Which company ? — The dynamite company — the company I am representing.

Therefore, all this talk which we have had before, that it is sometimes the agent
and sometimes the company, all comes back to the fact that it is the company ? — In
this special case it is so, as to the duty of the Government agent.

You are the Government agent now ? — No.

Well, acting Government agent ? — I have not got the appointment.

Will you tell us then under which thimble the pea is ? — 1 tell you the company
does it now.

How long has the company been agent for the Government ? — Since April.

The question at the present moment is, that the company orders the goods from
Europe from Nobel's Trust, brings them out, hands them over to you ; you sell them,
and you hand over to the Government what you like ? — What I like ? No.

How much do you hand over to the Government ? — I hand over the statement,
according to my contract — 5s. per case.

And you adjudge the payments in Europe as it suits your company ? — ^Yes.

How many cases do you anticipate you will make out of the raw product this
year ? — ^I said, since the month of October up to the end of April we manufactured
40,000 cases.

How many cases do you expect to make now onwards per month ? — It is very Estimated
difficult to say, because we have to take advantage of the cold weather. But we ^SnufiKsLred
manufacture now at the rate of 80,000 cases per year. dynamite.

The consumption here is probably about 180,000 cases a year ? — More or less.

How has the remaining 100,000 cases to be got ? — It has to be imported.

In the same manner ? — According to Volksraad resolution.

In importing that gUhr as it is, and the glycerine in lump, would it be cheaper to comparative
import it already made up in cartridges? — That would be going into the European t?d **'iinS$S S

Which you don't know anything about ? — ^No. n»ite.

406 Mr. A. Phillip's Evidence.

In your opinion, would it be cheaper to bring 120,000 cases, all ready as blasting
gelatine or as dynamite, or to bring it out in bulk, and then manipulate it here, and
put it into cartridges ? — That is a question of calculation for which, of course, I must
have European prices. The only thing I can tell you is that we started to manufacture
in this country. It costs us about the same as the goods prepared out of gtihr impregn^
in those places. I cannot say whether it is cheaper to introduce the finished article,
because tl^en I ought to have the European price of the manufactured article and of
the half -finished article.

You don't know the prices of the half -finished article and the finished article ? —
No. The only thing I can say is this : The cost of the cartridge explosive made in this
Comparative couutry, and the cost of the cartridge explosive made of the imported half-finished
SJTu manuf^- goods would be about the same.

^aSS^lnlotSy- Now, we havc got something at last. Then the question comes to this. If the

namite mwie, statement made before the Volksraad Commission, that the profit on the manipulation
haiflinJshe'd of imported stuff" leaves a profit of about £2 per case, then the manufacture of the
good*. dynamite out of the imported ingredients would be about the same price ? — ^Assuming

that the report is true and correct.
Estimated profit Therefore, the profit of the factory, if the output is 180,000 cases, would be
^^^naraite £3go^ooo a year ?— Yes, if you take £2 as correct, for argument's sake.

We have got one definite statement — that the cost of making the raw material
and making it from guhr impregn^ and lump gelatine would be the same. Therefore
the capital of your company is £450,000, and the profit, at that rate would be
£360,000 ?— Well, I cannot follow the calculation.

It is very simple. — Yes, if you take £2 to be correct. But I said it was not
Profits of South correct. I have said we only made £58,000 profit for the year 1895.

plosives Com- The poiut is, you have got shareholders, and have to hold meetings. Now, what

pany for 1805. j^ ^j^^ ^^^ ^j talking about ancient history. We might as well talk a&Dut the ancient

Romans as what occurred in 1894. Surely you can give us something more reason-
Eetumsofsouth able. We want the figures for 1896. — I am not entitled to give out figures before the
pioei?« Com* balaucc-sheet is accepted by the shareholders.
'^"^ ^^ It is a very curious thing. You say the figures are not correct, and then, when I

ask you in how far they are not correct, you decline to answer ? — I have given you

the reasons and I think they are very good.

Will the balance-sheet show how much profit you make per case ? — ^Yes ; you can
figure it out very easily.

You cannot remember what these figures are ? — Well, of course, I can say, more
or less, but I do not see any reason for telling you the figures now.

** rtliiJiUofsouSJ When the question was put as to how the capital was made up you declined to

African Ex. auswcr. Mr. Bourne, the secretary of the Transvaal Dynamite Factory, when he wm
pany!" ^°" hcrc, gavc me those figures when the contract was entered into. 182,500 shares of £1
each were paid to the previous concessionaires, whose concession had been cancelled;
25,000 fully-paid-up shares were issued to Mr. Lippert ; 22,500 shares were issued to
persons unknown ; and 220,000 were issued to Nobel's Trust against payment in fall
cash. What did the company get for £230,000? — You say Mr. Bourne told yoa
182,500 were issued to the old company in exchange for all the assets and properties
in this country ?

The assets were not worth £182,500. — But perhaps the property was — the oM
farm and the buildings.

Would you say the farm and the buildings thereon were worth £182,500 f—
They may have been worth that to our company at the time.

Mr. A. Phillip's Evidence. 407

Does the agent, who buys for the factory, get remunerated ? — As the Govern- ^*,™"°*qJ^"^!
ment agent, he gets nothing. ment buyer.

Does he do it for goodwill, or for love ? — As Government agent, yea

Why does Mr. Vorstman do it ; he is the only man I know who serves the
Ciovemment for nothing ? — I don't think I am entitled to reply for Mr. Vorstman's
private affairs.

Do your company pay him anything ? —Yes, because he is a director.

Does he get commission for buying ? — No.

Is it a fixed remuneration, or does it depend on the profit that is made? — He
^ts a fixed remuneration, and a bonus at the end of the year.

If you import this large quantity of raw material, assuming that it takes six tons Btuiway rates
of raw material to make one ton of dynamite, then if there is a reduction in railway JSruwon ^o f
rates, there would be a large saving on the cost of transport ? — Yea tordynlmite *

If these reductions are made by the railway, is your company prepared to take
All the profit, or are they prepared to reduce the price of dynamite ? — We are quite
prepared to reduce the price then.'

I will only say I regret having had to put these questions to Mr. Phillip. I am
•sorry that Mr. Vorstman, or someone who is intimately connected with the retaining
of this concession, is not here to answer the questions. — I may remark, Mr. Chairman,
that all the information Mr. Hay requires, if I, as a representative of the company,
.get an order from the Government, I shall be very pleased to give the information.

Mr. Smit.

What is the weight of the blocks of giihr impregn^ ? — ^They vary from 5 to

7 Iba, and up to 10 lbs. each.

What is the price of a block delivered at your factory? — I cannot tell you
•€XacUy ; we never calculate on blocks.

How many of these blocks does it take to make a case of dynamite ? — Five or
seven, according to weight.

What does it cost to manufacture cartridges, then, out of such a block ? — We cost of manu-
•calculate it about 21s. or 228. per case, without general expenses. SfmiS **'ci^

ridges

Chairman.

With regard to the last arguments of Mr. Hay and Mr. Phillip, I feel obliged to Mr. Phuup and
«ay thia Mr. Phillip stated in the beginning, and maintained, that he could not give concerSng^tSe

08 some information because Mr. Vorstman was the agent. I thought the informa- J["J^^^" **'
tion was not in his possession, and, therefore, I came to the conclusion to call Mr.
Torstman later on, or his representative here. Now, Mr. Phillip states that he can

.give such information when the Government gives hitn instructions to do so. I must
tell him that we are a Commission appointed by the Government to enquire into
every matter connected with the case, and to hear all the witnesses necessary ; and, if
-Mr. rhillip can give this information on behalf of Mr. Vorstman, I do not want to go
back and ^t instructions from the Government. I have ^t instructions, and if you
have the information, you ought to give it — When I saia I was willing to give the
information on the instructions of the Government, I did not say I had the informa-
tion with me. I will have to get it from the Government, as the Government keep
all the papers referring to importation, so that, if this CTommission asks me to produce
it, I have to get it from the Government.

Mr. Smit
I do not understand why you should go to the Government to get the informa-

408 Mr. A. Phillip's Evidence.

tion, because you stated the agent had all the information, and the agent had all the
papera The Chairman has stated that all the work is done by the ag^it, and the
Government do nothing themselves. Consequently, the papers are all in the hands of
the agent, and you are the agent at the present moment, and now you want to- go to
the Government for information. — As I have said, all the invoices have to go to the
Treasurer-General.

You would do better to say that you won't answer the questions, as at present

you leave the impression that you won't answer. — I am sorry this impression is

created, as I am willing ta answer anything I know.

Cost of Imported You have Stated that you don't know the cost of giihr impregn^ here; how do

d^miitemat- ^^^ ^^^ j^ — ^^ pouud, per tou, or per case ? — The Government gets the- invoice,

and it IS made out per case or per ton.

You say you get the invoices, and after you have deducted the charges you can
find out what it costs in Europe ? — If I deduct the charges — ^yes. If the Government
ask me for the invoices, I will ask for them and produce them.

I shall be very pleased if you will get those papers and give the informatioa
You said in your statement that, practically, the company buys the material The*
of dyumite.'^ Government are practically intermediaries, and as the company are really the people
who buy, they must be able to give all the information. — Yes. As I said, the Qovem-
The Government meut agent IS Separate from the company, so far as buying is concerned. I said
"**'* later I had refreshed my memory, and I remembered that a letter had been written

from the Government appointing Mr, Yorstman and Mr. Elimke Government officials
for buying raw material.

Was that before the new contract was entered into ? — The letter must have been
written somewhere about the same time.

I understood from you, when Mr. Brochon questioned you, that six tons of raw
material are necessary to manufacture one ton of dynamite. — I admitted it for argu-
ment's sake. I am not a technical man, and I have not got the figures, so I can't
tell you exactly.
Comparative Seeing that so much raw material is required in bulk for the manufactm^ of
toda^^anT dynamite, it follows — seeing that some of the material disappears during the course of
tured*^SSa^ manufacture — that dynamite must be far more expensive here. It cannot be made to
«nite. be profitable, or delivered at competing prices, because you have to pay for such a lot

of waste weight ? — ^I daresay.

You would lose such a lot in freight that you could not possibly manufacture
here at competing prices with imported dynamite ? — I do not think I could do it, not
only on account of freight, but on account of local conditions, such as wages, living
expenses, and native labour. All these items must always make the manufactured
article here somewhat more expensive than the imported.

Mr. Hugo,

Pretoria direct- Who are the directors of the company at Pretoria ? — Mr. Wolmarans, Mr. Voist-

AfriJS'^El?! man, Mr. Wolff", and myself.

plSfy!" ^°"'* You are the managing director ? — ^Yes.
Manaj^ng di- Who are the directors of Nobel's Trust Company ? — My father is a director, Ik

DiTeoors of Rcid, of Qlasgow ; Mr. Beckett, of Glasgow; Mr. Johnson, of Glasgow ; and, I thint

^te'SJSr*'" Dr. Auf schlaeger, of Hamburg.
^8oJth°AfricM[ ^^^o is chairman of this company here ? — My father.

Expiosiv^ And a director of Nobel's in Hamburg? — Yes.

N^^Tf^hekd Where is the European head office of the company ? — In Hamburg.

office. ^ffdJA it not formerly in London ? — No.

Who is general maoaj^r of the'compaby ?-^Hr. Boome.

' And the same Mr. Bourne is secretary o£ the .Tratisvaal Dynamite Company f—*
>a

• In reply to Mr. Albu, you fiUitly contradicted the statement that dynamite was
Id to De: Beers in Kimherley for 57& 6d., and then you added " We sell to them at Noberi and icr.
•a" Whom do you mean by " we " ? — Of course that was a slip of the tongua '""*'*•

But whcMoa do you mean by " we " ? — I mean the Nobel Dynamite Company.

Are you agent for Nobel's ? — No ; therefore I say it was a slip of the ton^e.

Coming back to the question of the directorate of the company. I behevie you nt direotoimt«
kve the names of the gentlemen who are on the Board in Europe. Dr. Aufschlaeger ^^^ ^ft
-he is a director of this company ? — Yea pioriv«co.

He is also a director of Nobel's ? — Yes.

Similarly Mr. Beckett, of Glasgow ? — Yes.

Also a director of Nobel's ? — ^Yes.

Mr. Heydemann is a director of your company ? — Yes.

Also a director of Nobd's ? — That I cannot say.

And Mr. James Johnson ? — ^Yes.

Also^a dii*ector of Nobel's ?— Yes.

Similarly, your father, Mr. Max Phillip ? — Yea

Mr. Levy ? — Yea

Mr. Taylor is also a director of your company ? — Yea

Also of Nobel's ?— Yea

At anyrate, you are sure that about six of the directors in Europe of thisNoMsdinotor-
)mpany are also directors of Nobel's ? — ^Yes. *^*

As a matter of fact, is not the duty of this company simply to act as agent of the Tbtoovemment
ransvaal Qovemment> in accordance with Article 3 ?— I unaerstand a letter has been south^ am^
ritten, but that was before my time, appointing Mr. Vorstman and Mr. Elimke for n^Jli^t*^*'
le buying of matenala

It must have been written a long time before the new contract ? — No ; because
le new contract, as far as I can remember, was signed in 1894. I am connected with
te Dynamite Company since 1895.

The nominal capital of the company is 450,000 shares of £1 each ? — Yea TheshMtoapitai

And 220,000 shares were issued against cash ?— Yea MtSim **e*x^

Is it not a fact that only 45 per cent, of that was paid-up ? — ^No ; the shares are «*'«*▼•• Oo
illy paid-up.

'thAt is not an answer to my question. Was £220,000 paid in cash ? — Yea

Mr. Hay gave us the information that 25,000 shares, ranking as fully-paid-up Mr. uopeifs
wres, were issued to Mh Lippert ?— Yea ^ ^^

What for do you know ? Was it not on account of an agreement entered into by Expioriv«o».
im with the old company ? — That I do not know.

I think in your statement to the Commission you siated it is the intention of the BoropMo pHoei
olksraad to enquire into European prices, which you tell us you know nothing ft>»<^y"Mrfte
aout ? — Yea

. How do you know it is the intention of the Volksraad? — Of course the Volks-
Uhd took a resolution to that effect.

Do you also know through whom this enquiry will be made ?— As far as I know,
f Dr. Leyds and Mr. Klimke.

Are you interesting yourself in the, matter.?— «Not in the least.
*>' Ton stated in Teply to Mr. Alba you would be suirprised if djmamite cendd be
slivered here at 408. .. I am ^iog tOask you a question.: Supposing! a firm bffer
ere made you, satisfactorily guaranteed, to.d^livet toCjTOu in JohamiasmEg d^iibmite

A 2

<tio Mr. A. Pliinip'c Bvldenoe.

equal to No. 1, approved of by the State Mining Engineer, at 40s. per ease, would your
company accept tnat offer ? — ^I tliink so.
^^t«id«'(oT I ^™ sorry to have to come back to the cost price of these articles, and I must
dsmunite. also express my surprise that you do not know the cost price of material, considering
you order and pay for it. I will put it this way : You pay the Qovemment the cost
price delivered at your factory, plus 5s. royalty ? — ^Yes.

You also know the cost of freight, landing, transport duty, etc., about 11a Id. ?—
About that

Well, it is very easy to find out the cost of the raw material free on board at
Hamburg ? — I never denied I could find it out I really never have taken the trouble
to find it out

The office of the Qovemment agent and your office are in the same building id
Pretoria ? — ^Yea

All the invoices pass through that office ? — Yea

It certainly is surprising you do not know what the Qovemment's agent jiays free
on board at Hamburg. From the reply you gave just now, I infer you can get the
information through your office in Pretoria ? — I can get the information by the system
you explain. As I told the Commission, I am quite willing to put all these documente
in their possession.

Will you supply the Commission with the price of the raw material free on board

at Hamburg ? — Yea

^f ?i ^a ^Bc! Now, you remember that the Special Commission appointed by the Volksnad

pioliiTM'com- reported tnat a profit of £2 per case is made by your company. You would not say

ported^ter- ^bat that was correct or incorrect, but later you said it was incorrect ? — ^I said, in

Cta for dytm- reply to Mr. Hay, that it was not correct, but Mr. Hay asked me was it true, and I

could not say that the Commission stated a truth or an untruth.

It is not a question of truth or untruth. According to the accounts submitted to
the Commission by the State Secretary, there is a profit of £2 per case made by the
company. — I cannot say what the State Secretary suomitted to tne Commission.

It must have been those invoices you told us about, which are in the hands of the
Government — ^The only thing I can say is that £2 is not correct
s^riM of dj. You sell dynamite at 85a that is correct ?— Yea
Rc^tiM and And give the Qovemment 6a ? — ^Yea
ajwgjondy. rpj^^ ^larffcs are 11a Id. ?— Yea

And Mr. Lippert gets Gs. per case, more or less ? — Yea

Then what is actually paid per case to people other than the Govemm^it?— It
comes out to about la 2d.

The total charge, therefore, is £1 3a 3d. — say 24a Deduct that from SSs, and.
there remains 61a That must be profit after deducting expensea Where does that
profit go to ? — Where do you put in the cost of the raw material ?
wwkinjco^f Well, say 21a for the raw material ? — No, I said 21a for working expenaea .

%etan. We have got information that the stuff can be bor^t in Hamburg for 18a Bvtt

rroflu^' ^^f*. '^^•l^i'^g it 20a, there still remains 40a profit ? — ^I don't see how you figure that onk
pioeWM Com- Take the cost of working expenses at 21s., that leaves 40a Now, we make a divideol
SS"* ^^^ oi 8 per cent. ; that figures out at about 6a 2d. per case net profit.

iBut there still remains a good profit after that ? — But you must take into ooo*
sideration the risk on the money invested.
^^tw^SSutiSI?^ Then you have your sinking fund. Is it a fact that the company recently affplie'
for the right to raise the price of blasting gelatine ? — ^Not exactly to raise the pete
but to stipulate for the maximum price we c^d charge for blasting gelatine.
What was that price ?~127a I think.

Mr. A. Phillip's Evidence. 4ii

^^^■—^— ————■■ I ■■!■ I.l- -■» »■■■■■ I > ■■ ■

I think you applied for the maximum price to be fixed at 133a ? — I tell you I am
not Qoite sure whether it was ISlTs. or ISSs.

What do you sell it for now ? — £5 7a 6d. oott of geutine.

Mr. Albu^

Tou stated that dynamite in Buluwayo sold for 110a per case. I, to-day, saw a pHoe of dyna-
^nUeman who is largely interested in Mashonaland, and on reading your statement Sijij,,*" ®***"*
he told me they paid 90a per case for Nobel's No. I. Out of that they have to pay
26& extra transport from the last railway station to Buluwayo. That is included in
the 90a, and, after deduction, would leave the nrice 64is. Then the railway to Palapye
is much further than that to the Transvaal, oo you are wrong in this statement that
they pay 110a — ^You can say I am wrong. Of course you don't know where I got
the imormation from. I have the information from a gentleman in Port Elizabeth ;
as I know this gentleman I trust him.

It is not from your own knowledge. Have you had the other prices you men-
tion also from agents in British India and Austrahan ports ? — Tea

Well, I have heard, on unquestionable authority, that in Buluwayo they only
pay 90a On the Tati goldfields they pay 80s.? — I have as good reason to doubt your
statement as you have to doubt mina

I don't doubt yours, because if I did doubt it, I would say you make the statement
knowing it to be incorrect You only get your information in the same way as I do.,
I am not selling any dynamite in Buluwayo. You said it would not cost much more
to manufacture dynamite here than in England or Germany. Is that correct? — Icoet of iocai
said that a case of cartridge explosives made in this country amounted to almost the SdymunS^
same as a case of cartridge explosives manufactured of imported half -finished gooda

Then how is it possible that packing and cartridging cost you 21s. a case here, ExpeoMof apn-
when the whole article i^eady for shipment does not exceed that price at Home ? — ^^mS^wioS
Tthere is another item you don't take into consideration. Mr. Hugo enumerated all ^^S^^iJ^
the expenses we ^hava Oae thing he did not mention was the amortisation of the ckmipuy.!
capital spent in this country, our capital outlay.

Would that amortisation increase the expenditure considerably ? — I think so.

I have got here a cutting from one of the financial papera I only read it
^because it may be interesting. It is a Stock Exchange paper, and appears in Berlin.
They are discussing the dividends of the Nobel Dynamite Trust uompany. The connection oi
«i8t of it is as follows : — ^" The management of the Nobel Dynamite Trust Company ^'f ^^'* ^*'
has decided to propose, at the next general meeting, the payment of a dividend of withtheTiw»>
12 per cent, against 13 per cent, in the previous year. This dividend does not come ^*^ ^vDMnitu
up to expectations whicli have been entertained during the last few months, in con-
sequence of the result of business not coming up in the Transvaal to the expectations
wnich they were justified to entertain." And the reason ^yen in this article is that
the position and conditions prevailing in the Transvaal, with regard to the dynamite
monopoly, do not look so favourable as they had reason to believe. Now, it shows
Ton what a great factor your Transvaal business plays in the whole Nobel Dynamite
Trust ring. — You cannot make me responsible.

Oh, na It is only an interesting article. I would not go so far as to make you
Tesponsible for articles that appear in European papera I only want to show what
aa enormous factor the industry here plays in your businesa — You put such a lot of
importance on all these artidea

WeU» if suqh a reascMi is given for reducing the dividend by 1 per cent, though
the profits have not been reduced, it shows that the position is a little more ediaky, if

vaal dynamite
busineM.

412 Mr. W. \inlVk CVideiu^:

I may use that word. — ^Because it suits you, therefore you believe in it. If there had
been an article quite to the contrary you would not have brought it.

I have not written that article, Mr. Phillip. — No ; but you have read it

Mr. SdrniitZ'Dv/mont

The price of dy- You sav you would be very glad to reduce the price, in case the railway tariff ift
SSwiymSw.** lowered, and thereby lower wages, cost of living, etc ? — Yea

I think it would be of very great value to the Commission to know to whafc
extent you could reduce it. In order to arrive at that, we must have an insight into
the working expenses of the manufactory. It is as well to point out that, before wi&

^^^J^^ itl! ^^^®™^ ^ lactory like this, and confiscate £600,000, the Commission must investigate

tocto^."" whether there is a future before the factory — to deliver dynamite cheaper in tha

future. To do this it will be necessary for the Commission to learn something about

the working expenses ? — Certainly, you can do so. I have not got the data here, bat

I can get them for you. May I make a remark on Mr. Brakhan's statement about

Detonators. detonators. I have got the figures for 1896. I think I understood Mr. Brakhan to
say that if detonators were imported in free trade, the mining industry could save
£72,000 per year. I can make out for 1896 the mining industry in the whole
republic have drawn the supply of detonators from us, amounting to a sum of £7,368.
I do not see, even putting the figures at £10,000 for argument's sake, where the
mining industry could save £72,000.

Mr. BraJeJian.

Those were figures I compiled, so I will look into the matter.

Mr. Smit

^r^npM Since Mr. Vorstman has been to Europe, has any material been ordered or
prtoM^dyna- received here ? — ^I left in April, and am only here about a month. Since then there
****** has been only one shipment received.

Who received it ? — It has arrived at Port Elizabeth recently, and there is another
ship on the way out.

It has not yet been delivered here ? — Partly.
Who received it ? — It was sent to the factory.

Who received the invoices for the load ? — They were addressed to Mr. Vorstman
and when he is away the company opens them.

Do they call the directors together to open the letters, or does Mr. Vorstman^a
representative open them ? — The representative.
And that is you ?— ^-Yes, I open the lettera
And yet you don't know the price of the stuff ? — It did not take my attention.

Chaimvan.

Visit of the In- You havc failed to put us in possession of several details, and you have invited ;

SSon t?tt?e the Commission to pay a visit to the factory. We will discuss that» and the Commis-

djnoBmite fac gj^j^ ^jjj reply to the invitation later on. There are some points remaining, in which

we must have information, and which we should get from you. This we will take

into consideration, to consider which will be the best way in order to get information

I thank you for your evidence.

Mr. w. H. Hall's Mr. William Hall was Called. In reply to a question, he said :

evidence.

Nature of state- J am a civil engineer, residing in San Francisco, California, and have prepared a
"*°^ statement relating more especially to the water supply of the mines, the labour pro-

Mf» Wf Haira EvUtenof. 4i8

blem as arisen here, and to the general advancement of the agriculture of this country,
as tending to make Uving cheaper, and mining cheaper. I have nothing to say on the
subject of dynamite or railway transportation, for these have been exhaustively dealt
with. I must first apologise to the Commission for making this statement in English
only, 86 I (fid not know what was required. I have put it in the hands of a transmtor
to-day, and wiU romedy that omission as soon as possible. I suppose the Commission's
time IS limited, and I will therefore wait, if the Commission desires, and read only
the opening and closing paragraphs, and then I will attend the Commission, whenever
wanted, for ecoss'^xanunation.

Chairman,

As you oav, the Commission's time is limited. Tou have handed this in as your
«wom declaration, but I will expect your Dutch translation all the sama When the
Commission think it necessary for you to come to answer questions the time will be
£xed

Mr. HalFs statement was as follows : —

©enflemen,— Complying with your invitation to me, addressed under date of the
IBth May, I submit this memorandum of my views concerning the condition of the
gold mining industry in this State, together with some remarks and suggestions as to
we Governmental problem springing therefrom, and which you are to report upon. I
approach the subject in the same sympathetic spirit for both Government and
industry, which your honourable Chairman, speaking for yourselves, representing the
Government, expressed for the industry in his opening statement; and I accept, as my
limitation, the <ieclaration of one of your members, made on the same occasion — that
you " desired the widest evidence " you " could possibly get with regard to the
•subject " of your enquiry.

In deference to your requirement of those who have thus far given evidence
(before you, I first record some facts as to my experience which may entitle my statement
to your attention. I occupied for 10 years the office of State Engineer of the State of MnHaU'sengin*
California, United States of America, and, subsequently, was supervising engineer in JJJjJjf •^p*^
the United States Geological Survey for several years, and, in these capacities, was
•charged with duties relating to mining and a^icultural industries over a very wide
4urea of country, and thus have had favourable opportunity for insight upon those
•economic questions which have sprung out of agricultural and mining developments
4ind railway transport practice in the United States of America.

I have no interests whatever in the South African Republic, and do not expect to
jhave. My mission here is absolutely disassociated with ail industrial controversy or
class grievance. I came under engagement to examine and report upon matters of
water supply for deep-level mining of the future, should the industry be permitted to
expand. 1 soon go away, probably not to return, except, it may be, for another
equally brief business trip. The professional work I have undertaken has brought
aqoaiely before me this question : what is to be the extent of mining on the Band,
for much of which I am asked to plan a water supplpng system ? And with this Po88ibUiti« of
has come the corellative question: what population immediately dependent upon ^£!mti^%^
mining will have to be provided for in water supply estimates ? ^'™*-

As Uie firms and companies to whom I am to report, control or represent the
ownership of about seven-eighths of the deep-level mining ground and naif of the
outcrop mining area, within the central 15 miles of the mtwatersrand Qoldfields,
bendcis mnch other mining property lying east and west of this focus of mining
activity ftnd prospects, it may be seen that I have had to look broadly at the future

414 Mr. W. Hall's Evidence.

possibilities of mining developments. Ton will hence appreciate the fact that Bf
study has, incidental^, been of some matters which enter into the proUflm nor
before yourselvea I propose, later in this paper, giving you some resmta inddeBtf
to this study. The £;eneral fact is thus mentioned at the opening of my statement If
way of showing, I hope, that though a comparatively recent comer to the Banl,!
have been thrown into practical contact with the industrial question of the day, oi
may thus be qualified, as well by some special local knowledge as hy pnnM
experience, to speak earnestly on the subject.

It only remains to be added that I have been entirely free and unhainpaed,1y

suggestion even, in my examinations ; that my work has been done and judgMik

I formed, without the slightest idea of presenting any of its results or ineiaeBtd

thoughts to your Commission or your Government ; and that I now do so, oa yov
invitation, without the knowledge even of those for whom I am professiooiDlf
engaged, and so far as I know, to the knowledge of several personal biends only.
A problem of ^® problem before you seems to me to be one of national economics, and not out
^ionai ccon- merely of class grievance. Every rapidly advancing country has had freqnentlf*
to remodel its fiscal system and administrative laws, not only to meet the requiR-
ments of its growing Government, but to satisfy the strenuous demands and impv-
ative necessities of its expanding or languishing industriea The present case in tkft
South African Republic is not exceptional in t£e mere fact of clamorous demand for
reform and abolition of industrial burdens. It is singular only as to the form in wiuek
it has appeared, and in that it has become so acute as to cut its way into intecnatktft
politics.

If the local mining industry were in the hands of burghers of the South Afrieis

Republic, the clamour for relief would be regarded as merely an internal industiU

agitation, paralleled by industrial upheavals in other countries, though possibly vA

equalled by them. In other words, there exists here a great governmental proUflB

outside of any particular complication made by the presence of a more or k*

troublesome uiUander population. This problem is primarily a fiscal one— thi

problem of how to derive a sufficient governmental income, not only withoiA

strangling the industries on which it rests, but so as to permit those industrieB to

expand. But, immediately this question is considered, it leads into politica-4K)t

partly politics ; not Uitlander va, Boer politics, but social politics, in that it is ft

question of people — of labour.

A problem of Tou may expropriate the railways, and operate them at the most reasonable laiM

iSlloiSaon."' which will return a fair interest for a government to receive for the use of a pubBc

work ; you may throw the dynamite business open to competition and admit the

article from the outside world free of duty; you may reduce annual burdens oi

productive industry by reducing Governmental expenditures in some directions ; and

you may still further lighten present burdens on industry by raising money for really

necessary permanent public works by issue of long term debenture& By uie last two

ReducUon of im- steps you mav be enabled to very materially reduce Customs tari& on artida

port duties, ncccssary to development of the staple industry, and for the use of those who Kw

upon wages and moderate salaries ; and you may do other things which will mah

living here comfortable, safe and compamtively inexpensive to the burgher, miiN

worker, and the merchant.

**sSlti°iSSiiie! ^i these can be done while still providing sufficient revenue for your Goveiti-

oompew^on mcnt They will stimulate the gold industry, it will expand, more mone^ will conn

of' state n^ into the country, a far greater demand for labour will ensue, and then will come Um

re'Tie^fs*^ acute stage of the labour problem, which is present in a mild form to-day. If yon

queitod. start ou the right principle with that problem now, you will be able to handle it late

Mr. W. HalTc Svidenee. 415

——————— ^ ■■ ■» iiia.Mi ■■!■■■■ 1 ■ ^— ^1^— M^i— ■■— ^^— ^— — a— —

L If you take the wrong course with it now, it will be very much more difficult to Thtubourprob-
Vidle then. This problem is altogether aside from any complication as between '^^
mr Government and any other, or as between prour people and €my other nationality.

There is not only gold in these reefs in immense quantities, which nature put "^^n* of wit.
0re, but, what is more, there are tens on tens of millions sterling in and on these ^andfleujB
Ids, which men have put there. The problem is to get it out, and it requires a vast
my of labour to do sa Where labour abnormally congregates, formidable political
leetions arise, whether that labour be black oi white, free or slave. This is the
eater part of the question before you — the labour part. It will bear more discus-
m than all the rest put together. It is the problem of life on the goldfields, which Nature of ubour
the problem of revenue for your Government, and of return of capital invested^ and J***'*"-
be mvested, here.

The very first result of the existence of your Commission, and following close
xm the publication of evidence taken before it, will be the discussion of this pro-
em— your problem — on its merits, all over the civilised world. Those peoples who
6 interested financially here, will, of course, be most concerned ; but, now that the
ets have been made authoritatively available, strong thinkers everywhere will take
) the topic. The day of outside discussion of Transvaal affairs from the standpoint
prejudice only, if there has been such a day, will now rapidly pass away, and,
laerstandingly, the intelligent world will await the result of the internal handling
the problem you are to report upon.

The crucial question here is one of coat of mining. Capitalisation, too great or ^SSJJ**^**'
o small, has nothing to do with it. The problem is to get the gold out of the
■ound at the least possible cost. Your Government is more interested in effecting
le desired result than any other party concerned. The cheaper mining is made here,
e greater may be the Government revenue, from the people engaged in it, without worWngoortBof
>pressin^ the industry. Make the cost of mining such that three times the popula- ^^i^n^
>n will be thereby justified on the Band, and the proper basis for Governmental
venue has immediately been trebled. Tlie Government's dividend, so to speak,
mes first, the shareholders' af terwai-ds.

That it is desirable to stop wild speculation in good shares and wild promotion
bad schemes, is perfectly true ; but such wild speculation and promotion have not,
id do not, keep, 23s. ores from paying the cost of working them on the Band, and
ive not produced the present depression. Disappointment in genuine enterpiise is ReMons for the
le cause of this trouble, and this disappointment has been brought about by unanti- SooT"*^"*'
pated burdens now resting on gold production, and by some other causes which have
fen brought to your notice in statements already before you. A company may have
jen capitalised for ten times its proper value, but the cost of mining its property, q^^,.,^,^!^
T 86, is not made a whit greater thereby. Dividends will, of course, be a less per ^^'
nt on nominal values, but costs of production are not affected.

For the purpose of judgment as to what should be the cost of winning the gold oomparatue
om the reefs of the Band, the natural conditions and circumstances under which this ditfons of ^t'
inine is prosecuted may well be compared with those surrounding and affecting the m*n*e """and
fit of working auriferous lodes, veins, or ledges in the Bocky Mountains and Pacific ^™*i!ljj{."
ope States of America. The methods of mining and reducing the banket ores here Moi^taiaiand
■e practically the same as those followed in American quartz-mming. sut***'^'*****

Having made such comparisons, from my own personal knowledge I have no
SBitation in saying that the conditions — so far as nature has made them — under
hich the industry is here developing, viewing the Witwatersrand fields as a whole,
■e decidedly more favourable than those present, and affecting the cost of similar
biing, as a general thing, in America.

41A Mci W. naflVSvMfeiKlC

There are, of eourse, exceptions; I state this as a predominating, not t&e un**
▼arying, rule. Not only is gold easier to get out of the ground here, but man should
be able to live as cheaply, in as healthful and vigorous a condition, and as contentedly,
here as in the American mining districts spoken of. The unavoidable conclusion is
that this gold should be obtained at less cost, and if it is not so obtained, the reason
is to be found in the shortcomings of man, not the obduracy or unkindness of natura
^t?fCto5*^u-*^,* matter of fact, it costs from 20 to 25 per cent more to win the cold of the
jJ'n&JlfJS Witwatersrand reefs than it does to gain tnat of the quartz lodes (3 American
of qwutiiodet ficlds, lu CBScs whcrc circumstanccs justif y direct comparison.

fleMs. ^ I do not mean to say it is in the power of man to at once bring about such

chan^ here as would reduce the cost of tnis mining to its legitimate minimum, nor

do I imply that any men are yet to blame for the full extent of the difference between

the cost as it is and the cost as it might be. But I do mean to say that men alona

^^i^° oosti ^^^^ y^ ^ blame if, within a very few years, this cost is not brought w near its lowest

•a Raad po8- possibility, in the present state of human knowledge. Moreover, the way is clear for

'•• very material reducing of costs at once, and very much blame will find its legitimate

resting-place, in the judgment of the world, should this initial reduction be not made,

and thereafter promptly followed by such other ameliorations as will bring the cost

of Rand mining to where it should be.

To make altogether clear, and I hope convincing, that which I have said in a
general way above, I ask your attention to several pointa On the Band, as a rule,

^wTSuSf*"** there is very little water to contend with in mining, and the cost of pumping or other-
wise raising water out of the shafts is, by comparison, an insignificant item of the cost
of gaining the orea Data, which have been collected under my direction, for the 15,
miles of Central Band especially, show that, as a rule : — I, The outcrop ground yields

iawiterapmiBfa &u average of about 50,000 gallons per shaft per day — the range of amount being from
10,000 to 90,000 gallons, and there beinff three or four exceptional cases where the
amount runs materially higher ; 2, that the first row of deep-levels, as a rule, jrields an

in deq;> itvti*. average of about 45,000 gallons per shaft per day — the range of amount being from
*^'^' 8,000 to 80,000 gallons, and there being two or three cases of very material higher

!■ deep lereie, ^^^^ output ; 3, that the sccoud row of deep levels, with one exception, yields
eeeesd lew. f rom 2,500 te 5,000 gallons per shaft per day only. There is an annual variation in
amount of water yield, due te alternation of rainy and dry seasons ; and cases where
decidedly larger flows, by comparison, exist, are of short life — the amounts soon drop
away te parity with other shafts in the range. These amounts of water, leaving
aside the few exceptional cases, which in a 8hoi*t time will probably run down to the
normal, are all small.

Most of the mine managers and engineers here think that, by comparison with
their experience elsewhere, they have no water in their shafts at all, and my own
wefter In Amer- observation coufirms this view. In American lode or vein mining the rule is the othw
taMtodeminee ^g^y rpj^g pumping plant is almost always a prominent item of initial cost The
volumes of water encountered are seldom insignificant, as hera The cost of operaticm
and maintenance of the pumps is a material and notable item in the cost of gaining
the ores.

o«mp»r»iiTe On the Band, the "ground" or rock over stepes and drives, as a rule, stands safely
!£&2SJai!i° without timbering — blocking up with waste rock being foimd all sufficient to prevent
cricMi minee. subsidencc Or dropping massea In this, also, nature has peculiarly favoured the
Witwatersrand miner, and those who are familiar with mine workings in Amerieit
cannot but be struck by this fact in going underground along the reefs in Johannes-
burg. For in American lode or vein mining, it frequently happens that the working!

ItHr. WifWirsEvilieivM 417

come vast labyrinths of heavy timbers, necessarily used to support the overhead,
sreeping " OTound, or to prevent rock masses from falling.

As a rme, in American mining for gold, mine timbering is a heavy item of
pense. Huge piles of immense logs from 1 to 2^ feet in diameter, and covering an
re or more of land, are collected alongside of mine openings, and are dropped
iderground for the purpose stated. These logs are frequently hauled on wagons
)m points half a day's journey away, for the countnr is often so extremely rugged
d precipitous that the cost of railway construction from the mine to the timber belt
prohibitive. The Rand miner is spared this logging and timbering expense, by
mparison, almost entirely.

On the Rand the banket ore and the rocks which enclose it, are, as a rule, more Easy working
sily drilled than the gold bearing quartz veins and their enclosing rocks in American co^p^arauv'e
)rkinga Less labour and less steel should accomplish equal results here. Although ]JJJ*^*** ®'
e Rand advantage in this respect is doubtless less marked and material than on the °^^ ^^o^®*-
ints of mine water and timbering, it is an advantage which should tell in costs.

On the Rand there is practically no local heat in the rocks. In a matter of ^^^®Jj** ^^^ J
nperature a Rand mine should be, and generally is, an ideal place for underground fa mines on
rd labour, and artificial ventilation is not an item of cost. In American mining Heat in AmeH-
derground temperature is not infrequently a consideration not to be overlooked, *^ ™*°®"'
d artificial ventilation of mines often constitute^ a material class of running costa

Here, then, I have enumerated four points incident to underground mining
nditions proper, wherein the Rand miner has material advantage over his confrire
America. If we consider conditions not incident to the gold mine itself, we find
at the Witwatersrand miner is even yet peculiarly favoured. Within 23 miles of
B very centre of Rand mining operations, within five miles of some of its extensive
)rkin£8 — and a practically level country intervening — lie vast beds of fairly £^)od cheapnewof fuel

in TiJii. '^i^ ij*^ •'o on Band.

su, as easily worked as almost any m the world.

This coal is actually so abunaant, and so easily won that, under any possible
gree of gold mining expansion and consequent coal demand on the Rand, yet ought
wer here to be cheap — very cheap. I have personally inspected some of these
il beds and mines, and I am familiar with the working of the coalmining industry,
le conditions here are such that these gold mines ou^t to have as cheap fuel as
noet any ore mines in the world. For American gola mining, fuel is often brought comparative ex-
ndreds of miles by rail, and, over portions, at least, of such distances, climbing heavy ST'linerican
adients and rounaing obstructive curvatures of track alignment. Or, in other cases, °^*'
isting, milling, pumping and other machinery is driven by the burning of wood as
iam-making fuel, and this wood is hauled by wagons over steep and rough mountain
ids, from points further from the mines than the coal output is from the centre of
B gold industry on the Johannesburg Rand.

As in the case of mine timber hauling, the cost of railway construction to meet
is fuel transport demand is often prohibitive in America, so that hauling has often
be done by wagon. There are, oi course, exceptions to the rule I have stated for
aerican workings. Some few mines are fairly well situated with respect to fuel
pply, but no gom mines are nearly so well favoured as those of this Johannesburg
ige. Some American mines, too, are operated with power derived from water
assure, obtained at more or less, but often immense, outlay of capital in bringing
iter, by means of canals, ditches or pipes, to advantageous points for the mine
?ply I ftiid operative power is delivered at still other mines by electric currents
iducted from points where cheap water power generates it But, as a general thing,
aerican ore mining is nrosecuted by the use of power generated as steam on the
>t of application, and by consumption of fuel brought from afar.

418 Mr. W. Halt's Evidence.

In this respect the American cases would be paralleled on the Band if the ooai

had to be brought from over the Drakensberg lUuige in Natal, from some point in

Portuguese territory, or even from Rhodesia, were there rail commimication from

Buluwayo to this point.

oiim»teofR«nd. Again, the climate on the Band is an ideal one for mining industry — never veiy

comntriflon of cold uor cxcessively hot, and free from snowfall. There are very material items of cost

Band and Am° from which the Band miner is exempt, but which the American miner is obliged to

. mSa ^^^^ meet There are no heavy snows to shovel off from about the Band surface works;

there are such snows about many American mine openings, and for several months in

some years. The Band miner does not have to lay in a great stock of fuel for winter

use ; he can get it as well one time as another throughout the vear; but the American

miner not infrequently has to lay in a four or five months' fuel stod^ and sometimes

he has to house it to make it available for handling under heavy snowa

The mine worker on the Rand does not have to bum much fuel to warm his home
in winter. With the American mine workman this fuel item is often a very material
element of living expense. This Rand climate is at times invigorating without beio^
rigorous is at other times relaxing without being enervating, and is always favomv
ame to vigorous exertion.

Men should live here as healthfully as in almost any American mining r^oo,

^^^toUt *^^ decidedly more so than in many of them. There is typhoid fever here for neBAj

half the year, but that is man's fault, not nature's, and is almost wholly preventible

by man. There is pneumonia here for much of the other half year, but tnat also »

largely man's fault, and is in no small degree preventible.

Proper sanitation in matters of sewerage, water supply, and municipal and premises
cleanliness, and proper supply of water in, and health regulation about, the muies, will
prevent typhoid fever ; ana, with such street and road improvement and maintenanoe
as would keep down the poisonous, irritating dusts of winter, that class of colds which
result in pneumonia here would be much less frequent. At its worst,, thoi^h, pnen-
monia is not as prevalent here as it is every winter m the famed Cripple-CSreek mming
region of America, or as it has been, and is, at Bodie and other districts of that
country; and there it is due to the extreme cutting cold, which man cannot ameliorate.

While the white man should be able to live here in health and vigour, and be an

efficient worker, on a wage comparable to that which he receives for a like service

elsewhere, nature has provided in adjacent parts of South Africa a vast and reserve

''roraiy ^^^ labour crop in the native negro population. If more highly civiliiaed man does not

reap on the goldfields a full benefit from this provision of nature, while at the^ same

time benefiting the kaffir, it is the white man s fault. American mining enterprise

has the benefit of no such bountiful labour supply, which, by all rules of reaaoii>

should be cheap, and in the exercise of good judgment, should be m£kde effiieient as

well.

Natural advan. I havc uow Called youT attention to foin: marked advantages — the small amount

. tagesof Rand. q£ ground Water, freedom from heavy timbering costs, tractability of ores, and freedom

from oppressive ground heat — which the mining field itself affords here ; and I have

also presented three points wherein nature seemingly has intended to favour mixung

industry on the Band — namely, an abundant fuel supply close at hand, an abundaoi

labour supply at no great distance, and a good working climate.

Agriculture There is one other point worthy of note in this connection. The climate and aoib

of the Transvaal are favourable to agiiculture, and the cost of living ought to be, at

most, moderate on the Witwatersrand fields to those who are content to live» or 1^

their earnings do live, on ordinary plain food, such as the country sbovid produoe.

Mr. W. Hairs Bvldenoe. 419

- - - -

By comparison with the American miner, the Witwatersrand worker should be ^^^^l^^*^
le to live as well and as cheaply, and would be able to do so, were the agricultural erica and on
lources of this country brought to the sta^e of development they might be. I know SSdl^*^**^
)re are peculiar drawbacks here, and special ones recently or at the present time —
lUsts and the rinderpest. But the American pioneer agnculturist has had, and has,
mrges to contend with also, and very often in the neighbourhood of mining regions
has not nearly such favourable conditions to work under as the Transvaal presents.

The development of the Transvaal goldfields can never reach the stage which in ^^^'^ *":
human reason it should reach, uptil the agriculture of the Transvaal is measurably ricuiture. '^'
eanced beyond where it is to-day. I do not say this liehtly or with intent to dis-
rage the farmers or people of the Transvaal, and certainly not with the intent to
little the praiseworthy result which they have brought about in making a civilised
intry out of a most savage and barbarous one withm the span of one generation's
^ But it is a material point in the economic problem which the present condition
the mining industry has brought to your doors — ^that the cost of mining is largely
lat the cost of livmg makes it, and the cost of living is in the greatest degree
pendent upon local agricultural production.

The miner has brought into your country the most perfect mining machinery and
pliances, the most refined methods of work, and some of the best trainea and
perienced experts on earth, and he has by these means brought his industry from
> crudest to tne most advanced stage, within little more than half a decade. Has
) local agriculturist kept pace with him ? For, mark you, they must go abreast
the best results.

If it were not for the exceptional perfection of mining and reduction machinery
i plant, if it were not for perfection of method and process, in the present state of
man knowledge which have been brought to your doors, and if it were not that
ny of the best men in various departments of mining work have been called from
ler countries to the advantage oi the Witwatersrand, there would not be a dozen
rking mines upon it to-day, and there would be no prospect of increase in the
mber.

By these means has the miner attained a certain success, which has m£kde a
rket for the produce of the farmer. Has the farmer, meanwhile, brought his
thods to a comparable degree of perfection, enabling him to supply the mmer at
feet profitable price, so that he may make still other mines pay for their joint
lefit and the advancement of the country ?

I am professionally and practically familiar with the agricultural resources and
rkin^ of vast American regions adjacent to or supplying mining districts. I have Agriouitan.
ked into this matter in the Transvaal, and I regret to say that for myself I answer
» last above query in the negative.

The Transvaal agriculture is crude, its methods are wasteful, the farming results
i poor, and the market price of produce is excessively high. How is it possible,
der such conditions, to bring the cost of mining on the Kand down to what it should
? The point is a vital one m the economic problem before you, if it is to be treated
ler than in the most superficial manner. At least, it should be considered, when a
I is made by those representing the farmer on the miner, to still more perfect his
thods, to yet further improve his machinery and to cut down the salaries of those
lo have virtually made these mines and the past prosperity, or else, as an altema-
e, not ask for relief from your Government.

It is no purpose of mine to invidiously reflect on the farmers of the Transvaal
Kmld have no possible object in so doing ; and to criticise them unjustly or un-

420 Mr« W. HaOL'fl : EvidemJKr

necessarily would be repugnant to me. I have found much- to admire in them. But
this is a case wherein the truth should be pressed home to the minds of alL
The mining \n- You cauuot havc the bcst development of the mining industry here in the midst
ri^StaJT* *^' oi a woefully backward agricultural development, except you make such free and
open communication with, and cheap transport from, the outside world as will enable
it to supply the wants of these mining people almost as cheaply as they oould be
supplied by home-raised produce under good agricultural practice.

You cannot expect the mining industry to plucfc the mote out of its industrial
eye until your farming population removes some, at least, of the beam in its industrial
eye, except your Government, representing your people, come to the rescua It is juat
^T* ° n Band ^^^® ^tfL^Q of things which has made the trouble on the Band. The deficiencies caused
by these conditions, under the circumstances, it is the province of the Government to
fill It is for this reason there are and have been ** grievances " here ; and it is for
the same reason that they will continue until very substantial relief is granted, and
the cost of living is brought to a reasonable figure.

Conditions are such here that the mining industry cannot work out its own

salvation ; and, just as it would be asking too much of the Transvaal farmers to

immediately change their methods, as a whole, and at once step into the first rank of

agricultural economists — bringing living expenses down to old country rates — so is it

^du8^al& the asking too much of the mining industry to try to go materially further in reducing

Government \\^ running costs luitil it has had such relief as the Government, representing the

exceedingly backward agricultural industry, can grant.

^IndM towS M *^^® ^^®^ ^^ living must ever be a fair index of the wage to be paid, in order that

^^^ the workman remain contented in whatever capacity he may be serving. Those who

labour only with their hands} receive but small margins over living rates, while those

who have some specially valuable professional or managerial ability demand and get

wide margins. Nevertheless, living expense is an index to the wage or salary iu each

grade of service, separately, for each locality.

Being familiar with wage rates and salaries and the cost of living in some of the

mining regions and towns and cities of the Pacific Slope States of America, I have

^cSt^S/ uVinI enquired into the subject here, with this result (I give you comparisons in percent-

'®f ™ffl tV* fl-geSj fl^d not actual rates, because I can thus more briefly convey the lesson which the

and engineers, tigUreS WOUld ShoW) :

amiS caSfol^ The Ordinary miner, single, and living at a boarding house, pays 13 to 17 per cent
"**• more here for his board and bunk and other necessaries of life than at California minea

If he is married and attempts to keep house, his expenses will be 22 to 27 per cent
greater herd to support himself and family than in Cfalifomian mining districts. In
the case of the mechanic, receiving better wages and desiring better food and accommo-
dation generally, I place the differences at 18 to 25 per cent, if single, and 28 to 32 per
cent, if maiTied..

And so on, as we mount the scale of wage and salary earners, the cost of living
here, aa compared to California mining towns and cities, increases alc^rmingly, untfl
when we reach the highest paid consulting engineers, general managers, and managing
directors, I am satisfied that it costs them from 150 to 200 per cent. — from two to three
times as much as it would cost to live in the same style in the city of San Franci800»
California.

Take a few items of which I know. House rents are from two to four times
greater here than in San Francisco, or in any mining district in California. Water
costs four to 10 times as much as in San Francisco and Califomian mining regiona (I
have compared the rates per volume supplied, and also a number of inontmy^ water
bills here, with my knowleage of what similar service would be rendered for in Sai

Mr. W. HalFs EvKIeiice.

421

Francisco, or in any mining region in California, where there is an independent company
selling water). To keep a stable of two to six horses, costs three to four times as much
in Johannesburg as in San Francisco, or as it would in any mining district in
California.

I might enumerate other items of expense which make drafts on the salary and
wage-earner's purse — all showing costs ranging at 50 to 200 per cent higher here than
in American mining districts and neighbouring cities, but the above are enough to
illustrate the point 1 seek to make.

The following table shows in a general way the result of my enquiry. The figures
do not, of course, purport to accurately represent the facts, but I venture to say that if a
detailed enquiry were made on the subject its results would not much differ from my
illustration.

Table showing approximately, the Percentages of Higher Cost of Living on
THE Band as compared to Living Costs in Pacific Coast Mining Districts
AND Cities: —

America.

OlMi

Of Bmpl
Rftdedf

Aoyment,

gndcd^from
Least to Qtmteet Pfty.

Ptooentikge of EzoeBS of Ooit of Living on the Band
over Coete in Amerioan Mining Camps and Citiee.
Single lian. lUn with numily.

• • •

Miner

Mechanic

Foreman

Captain

Clerks

Surveyor

Aooountanta...

Managers and engineers

Qeneral managers and consulting engineers

13 to 17
18 „ 23
26 „ 30
30 „ 35
40 „ 46

22
28
35
45
56
60
80
100
150

to 27
32

40
50
60
70
90
„120
„200

Pereentaget of
exoeae of coet
of living on
Band over
coet of living
in American
mininff camps
anddlies.

Two points are prominently apparent from this tabulation : — (1) The comparative
excess in cost of living on the Rand falls more heavily on the employees of the higher
than the lower grades ; (2) The percentage of excess is far greater for married men
with families attempting to keep house, than for single men hving at boarding houses
or in rooms.

I submit that this exhibit strikingly illustrates the reason for the point made by
Mr. Goldmann in evidence before you, as to the remarkably small proportionate part of
mine white employees on the Band who are married, and the still more remarkably
small number who have their wives and families here with them.

But, if the results of my enquiry are near the truth, the above exhibit illustrates
another point, namely, a greater proportion of the highly-paid employees having
families resident here with them, than of those of lower pay. Those of higher pay, as
a elass^ unless their salaries are proportionately very much in advance of those of
lower, are the greatest suffers linancially by the burdens of Transvaal living costs.
And this I believe to be the case.

I turn to the rates of pay for the employees of various grades on the Band^ as put
in evidence by several witnesses — commencing with the cheapest white miner at £14
per month, and advancing through the roll to mine managers at £1,600 to £3,000 pe
year — and I find that, whereas the wages of the lowest grades of white mine employee^
^re 15 to 80 per c^it higher here than in the older and more settled mine regions in-
Western America, the employees of highest grades, up to the managers and engineers.

Comparative
frreater oost of
Bring of higher
than lower
gnule employ-

Comparative
higher oost of
linng of mar>
ried than on-
manied min*
era.

Comparative sal-
aries and wages
on Band and
in Western
Amerioa of
higher gnule
.and lower
. grade mine
employe

Mr. W. HaU's Evident,

necesaarily would be repugnant to me. I have found mach-to ftdiuire in them. Bnt
this is a case wherein tbe truth should be pressed home to the minds of alL

Tbc miniDg in- You Cannot have the best development of the mining industiy here in the midst

ri^^SS^ *" of a woefully backward agricultural development, except yon make snch free and

open communication with, and cheap transport from, the outside world as will enable

it to supply the wants of these mining people almost as cheaply as they could be

supplied oy home-raised produce under good agricultural practice.

Yon cannot expect the mining industry to pluck the mote out of its indnstrial
eye until your farming population removes some, at least, of the beam in its indostriol
eye, except your Government, representing your people, come to the rescue. It is jost

C'j^^^J^ Uiis state of things which has made the trouble on the Rand. The deficiencies caused
by these conditions, under tbe circumstances, it is the province of the Government to
fill. It is for this reason there are and have been " grievances " here ; and it is for
the same reason that they will continue until very substantial relief is granted, aad
the cost of living is brought to a reasonable figure.

Conditions are such here that the minmg industry cannot work out its own
salvation ; and, just as it would be asking too much of the Transvaal farmen to
immediately change their methods, as a whole, and at once step into the first rank of
agricultural economists — bringing living expenses down to old country rates — so is it

"liu^JUSi ,'hB aSting too much of the mining industry to try to go materially further in redtuiii;
aoTiniment;. Hg running costs until it has had such relief as the Government, representing Uw

exceedingly backward agricultural industry, can grant. ;

ooM of living in The cost of Uviug must ever be a fair index of the wage to be paid, in order tint

the workman remain contented in whatever capacity he may be serving. Those who
labour only with their hands] receive but small margins over living rates, while thON
who have some specially valuable professional or managerial ability demand and gti
wide margins. Nevertheless, living expense is an index to the wage or salaiy in eiw
grade of service, separately, for each locality.

Being familial' with wage rates and salaries and the cost of living in some of tli0
mining regions and towns and cities of the Pacific Slope States of America, I bHV

''cort''of"uVing enquired into the subject here, with this result (I give you comparisons in peremt-
tor minen, ages, and not actual rates, because I can thus more Briefly convey the lesson which ti^

mine olBcisli. „" , , , \ J J

toAeaginun. fagUreS WOUld ShOW) ;

ud in ciSioi^ The ordinary miner, single, and living at a Ixiarding house, pays 13 to 17 per cent-^

"^ more here for his board and Bunk and other neccasarios of life than at California mine^*

If he is married and attempts to keep house, his expenses will be 22 to 27 per cent^
greater herd to support himself and family than in Cfalifomian mining districts, te"-
the case of the mmianic, receiving better wages and desiring better food and accommc^-
dation generally, I place the differences at 18 to 2,5 per coat, if single, and 28 to 32 p*^
cent, if mai-ried.,

And so on, as we mount the scale of wage and salary earners, the cost of liri:,*^^
here, as compared to California mining towns and cities, increases alivrmingly, (u*^^
when we reach the highest paid consulting engineers, general managers, and """g-^^
directors, I am satisfied that it costs them from 150 to 200 per cent — from two toti^ ""^"-m
times as much as it would cost to live in the same style in the city of San I'^i"^^^"^

California. '^■^I

greater here than in San Francisco, or in any mining district in GflJi' ^^^^^♦^^

Take a few items of which I know. House rents are from two tc f^o

costs four to 10 times as much as in San Fnuuascb and Califomii
have compared the rates per volume sumtlied, and also a nui
bills here, with my knowledge of what tdmilar ggtrice w6uld.

422 Mr. W. Hall's Evidence.

rftaaaa

receive salaries not more than the satne 15 to 30 per cent higher thaii they ^¥oald
command in the same American mine centres for like servicea

If we compare these latter percentages, as to wages and salaries, with those of the
illustration just given you, as to relative cost of living, and remember the rulcT— that cost
of living must be an index of the wajge — we find that it is not the higher paid white
employees on the Band who are reapmg the harvest, if one is being garnered at present
ratea I take up the more direct application of the foregoing to the problem which
you have in hand.
Average work- You have iu evideuce, so far as I have observed, the cost of mining and reduction
m&eeon Rand ^^ ©rcs ou the Band, varying from about 24s. to about 29a per ton milled. I havd
collected some data, which show a higher range, namely, up to 32a per ton ; and tho
result of my enquiry is rather to the point that there is more ore mmed and reduced
on the Band at costs over 298., than under that figure. Next, it appears that the pro^
portionate part due to white labour, of the total cost, ranges from 28 to 35 per cent^
And, again, I assume, upon the basis of my own enquiry and comparisons, that the
average cost of living of all white mine employees is 25 to 35 per cent, greater here
than m the American mining countries spoken of.
Fudbie reduc- If, upou these rates and ratios, we estimate how far wages might, without affectixig
tog°oMt8^ro. the employees' profits, be cut down, and how much cost of production would thus be
nfoh reduc- lowereo, ii the cost of living here were reduced to the American standard, and the
</uvi^. wages proportionately lowered, we would have a result somewhat as follows : — Cost of
mining and reduction, 24a to 32a ; part due to labour, say 32 per cent., 768-10*248l
part due to excess cost of living; if rates here are 35 per cent higher, 2'69-3'58a; if
rates here are 30 per cent, higher, 2'30-3'07a ; if rates here are 25 per cent, higher,
l*92-2*56a From this it appears that the difference in cost of living here, as com^ured
to American mining regions, may account for between, say 2a as a minimum, and 3*588.
as a maximum ; that is, if cost of living for the white man were reduced here to what
might be considered a reasonable basis, all wages and salaries could be cut, without
diminishing the workers* profits, so as to reduce the cost of producing the gold from 2b.

to 3-58a

This reasoning is based, you will observe, upon the assumption that the cost of
living, at the mean of the wage scale, is a correct index of the fair average wage rate

If, now, we consider the application of this conclusion to the present wage rate, we
have an interesting result, and that is, that the higher cost of white labour of all
kinds, engaged in mining and for the mining companies, is accounted for, or some-
what more than accounted for, by the difference in the cost of the necessaries, and the
amoimts of expenditure, of life.

And, now, I come to a matter as to which I speak with confidence, because of
personal experience in the management of labour, both skilled and unskilled, and (A a
wide opportunity to observe and hear the results of different systems of handling
Bonos QTrtem. labour. This is the bonus system of rewarding extra exertion on the part of minera
There appears to be here a leaning towards an opinion that the system is unfair and
extravagant. I desire to testify, not only to its equability and economy, but to its
wisdom for other reasons, and to illustrate my testimony by some mcts I have
collected here, and by results of experience elsewhera At tne outset I desire to t^
explain that I use the words " bonus system " as expressive of all forms of graded 1^
payment, whereunder a premium is set upon extra exertion, as evidenced by exoesB of
results over the normal, due to simple day-wage resulta In this category would oooM
the graded-rate contract system, as well as the bonus system proper.
Hie boniit ty^ The higher grade American contractors on heavy engmeering constructioiis, n
tflin In Amo^ ^^j ^ managers of great manufacturing works» have long recognised the justioe d

I'.

Mr. W. Hairs Evidence. 428

he onderlyinfi; principle and the value to them of its application in management of
heir labour rorce& Special rewards, extra pay, advances of rates of pay, made
voluntarily to those men who prove specially active on arduous and dangerous duty,
8d to the more orderly bonus system, which is quite common in some branches of
ngineering construction, and in great iron and steel working establishments, to my
wn personal knowledge. Certainly, high-grade contractors and managers whose
rork is systematised, and the costs and relative costs known to a penny, would not
dopt a system which did not pay them. If it would pay a contractor to follow that
ystem in driving great tunnels, as I know from experience it does, it would pay him
0 adopt it in sinking a shaft And if it would pay him to adopt it in shaft work, it
hould equally pay a mining company to do the same. That it does pay here you
Ave had illustrated to you in the testimony of Mr. Catlin.

I endeavour to give some further illustration of its advantages, not alone on
ccount of the direct benefits to be derived from the working of the system itself, but Bonus ^yrtem
ecause there are very important correlative benefits which have not been brought to ***°*'*'*^
our notice, and because it embodies a principle whose application is indispensable to
be solving of your entire labour problem — the great problem for the Rand and for
he South African Republic.

The mining industry has appealed to Government for relief of burden& Repre-
entatives of Government say that there is a desire on the part of Government to
osier the industry : It only wants to see its way clear to that end. And they ask
rhst the industry proposes to do to help itsell Members of the industry's staff point
at that one way is to extend the bonus system. Whereupon, there are those in
>rominent positions who imply or say, that the system, so far from being economical,
i extravagant To entertain this latter assertion, to adopt its idea, would be a fatal
lietake for your Commission to fall into, for the reaaon above given.

I there£)re ask your indulgence to present the matter somewhat more fully than
Cr. Catlin could do, owing to his being on the eve of going away on vacation, when
le appeared before you. First: Completing Mr. Catlin's figures as to the Catlin ^^^^^j^^jg™
haft Passing over the first two or three months, when the work was not yet ihaft
aiming regularly, there came two months, whose average rate was 60 feet per month,
t a cost of £21 15a 8d. per foot Then the next five months, during which work
ras regular, the mean monthly progress was 128*3 feet, at an average cost of
>19 S& 6d. per foot Now, it is well-known that such shafts h£kd never before heea
onk by the ungraded day- wage system, at a faster rate than 80 feet per month, or a
Dwer cost than about £24 per foot The far better result attained in the Catlin shaft
— running the cost down in one month as low as £18 6a and, in another monUi, the
ate of speed up to 142 feet — ^is due to the incentive of the premium on extra
xertion. It does seem that there can be no disputing the lesson taught by such
igore&

I ask your attention to a business simile pointing this lesson. If a mercantile EooDooovofboot
loase makes a shipment of goods over a long voyage route, its manager considers "•■^™*°»
irst, cost, interest, insurance, meeting of demand, and profit A question with him is
£1 to whether he will order shipment by sailing vessel or by steamship, which will
ake less than half the time, but whose freight rates are greater. The world's ex-
letience shows that it pays the merchant to employ the quicker mode of transit at the
dgher freighting cost The story is told by figures of the capital account in his
looks. An exactly similar storv, only with far more favourable results, would be told
ly the capital account of a mining company engaged in sinking or developing work,
rere the books kept so that the point might be brought out, and if the bonus
gfBtem were operated as the f ast^rate steamship line against the one-grade-wage

4S4 Mn W. MalTb evJdencew

sjrstem representing the comparatively slow line of sailing packets. Sinking a de^H
level shaft is, in this way, an exact counterpart of freigntmg over a long voyaga £
attempt to illustrate upon a basis of the experience on the Rand.
dthetioai 'Hio Simmer and Jack East Company has a working capital of £186,000 sub-
r ofthree ^nbed for the purpose of putting down to the reefs three shafts, with probable depths
ep -level estimated at 2,400, 2,500, and 2,700 ft. As these are nearly the same, we may say
er and Ja!ok that £62,000, Que-third of the above total working capital for them, may be charged
iigeuid borT- ag^inst each in capital account, and against that amount interest at, we will say, 6 per
sqrstem res- cent, should be charged in such accoimt If, now, the shafts are put down at the x&te
of 60 ft per month, it will take 40, 41§, and 45 months respectively to sink them, and
the amounts of interest which the capital accoimt will show against the cost for each
will be £12,400f £12,916, and £13,950 respectively. Adding these amounts to ih»
principal in each case, the shafts will have cost the shareholders who put up their
money originally and waited for return, £74,400, £74,916, and £75,950 respectively.
But if the shafts are driven at double the rate of speed (120 ft. per mcmth) the work
would be accomplished in half the time, and half the above amounts of interest would
be saved to the shareholders, because the mine could be brought into paying condition
with the saving of that amount of time to which that amount of mterest on shaft
working capital would be dua
^il1rcoan?*b^ In the above instance the saving to the Simmer and Jack Eiast capital aoiDoant^
boons qrttem. and to shareholders, would amount to £19,633 — a very handsome amount, yoa mnsfc
admit, to be saved by good management That this is an actual saving, eveiT
business man who keeps a capital account, will testify. And, be it remembered, it is
Uyiog in work- entirely aside from the saving in actual cost of the shafts themselves, due to the lower
^ns^mite^ rate of cost per foot attained, with the higher rate of speed in driving. The h]|^
speed bonus system is thus seen to operate both waya

I next note what the total saving might be by it in the above illustrative case.
Sunk by day labour, unenooura^ed, and at the rate Mr. Catlin found it cost to sink
similar shafts in the same neighbourhood — say, £24 per foot — the 7,600 feet
aggregate footage in depth of these three shafts, would cost £182,400 — a small margin^
onty, less than the working capital £186,000, provided for them. Sunk under th»
bonus system at, say, £20 per foot (which is nearly 10s. more than Mr. Catlin's least
rate under it) the cost would be £152,000. The direct-saving in money would bd
£30,400 ; which with the saving of £19,633 to the Company's capital account and the
shareholders, makes £60,033, which amount is nearly 40 per cent on the actual cost
of the shafts, or 33 per cent of the working capital provided for them.
Saving in pro But ihis is uot all ; thei*e would be a saving of 20 to 22^ months' time ; and this
dii^ of^ ^ ^^^^ ^^ ^^® ^^^^ development of the enterprise is worth money to the shareholders ta
ff»*°«d^bon- other ways than in saving interest on the working capital provided for the shafts.
™ For instance, to shareholders who hold their shares, say, for the 20 to 22^ months after

the mine commences to produce, the saving of that len^h of time in the shaft sixikiiig
is worth their j:>ro 'rata of all the net product in that time.

It may be said that I have calculated interest on a capital which is greater Uianis
required for the shafta . And so it would, in such a case, prove to be, but the estimtto
of capital required for the shafts was based on previous experience and rates for woifc
here. That it is possible to do the work for a less sum, and thereby save, not only thft
interest on the whole sum for a very material length of time, but also a good pact o(
the capital itself, is due to the operation of the mnus system. For constructiODg,ii
uncertain in incidental difficulties as shaft sinking, a liberal margin of capital most b0
provided in the estimates.
B^ihaftaink. rjsy^^ abovc casc is a hypothetical one, and no deep-level shaft has been ewnpletal^

Mr. W: Hall*8 Bvldenoe.

425

aank at as great an average rate of speed as 120 feet per month, with as low an
average cost as £20 per foot. But experieDce thus far warrants my asing these
figures for the purpose of illustrating a principle. Mr. Catlin's best speed was even
much higher, 142 feet per month ; his average for five months was 128*3 feet, at a
mean cost of £19 Ss. 6d., as we have seen. The actual costs of, and rates in, the
Simmer and Jack E^t shafts themselves show figures ranging from different groopa
of months, as follows : —

Deptli.

«i^sssu.

tttt.

C«tt

2,400

£23 14

2,400

112

20 9

2,600

23 13

2,500

22 4

2,700

28 1

2.700

25 3

£66,900

£7,681

°:,"';Si'"

49,120

5,403

(tDldngotSioi

69,146

8,872

■hart*.

55,510

7,216

75,736

16,288

67,994

10378

The figures which I use in this statement were made up by the resident secretary
<if the company, Mr. Roberts, and have been furnished to me by Mr. Webb, consulting
«aigineer to the company, arranged at my suggestion, so as co illustrate the point I
XBuuce, namely, that with increased speed comes decreased cost per foot, decreased time
xuceasary to sink the shaft, decree^ed cost of the work as a whole, and, of course,
IKttportionately less interest to be charged in the capital account. Examination of
eaCQ couplet— -one for each of the three shafts, separately — tells the story. The cases
awe fairly selected. The incentive of the bonus produced the favourable result in
every case.

beg to submit another illustration of the economy to be attained by rapid i
ot deep-level shafts. The nominal capital of the Simmer and Jack Proprietary

, limited, is £5,000,000. The shares have actually been taken by the public and

the vendors at rotes up to £7 10a, but to be entirely conservative, I adopt the nominal
nte of £5, which produces the capitalisation above quoted. Now, the shareholders
an waiting for returns on their investments ; the outcrop part of the property is
beW worked, and paying, but three deep-level shafts are being sunk, upon the com-
^etion of which the opening of fully one-third of the property necessarily depends.
When these are producing ore, it is expected that the monthly returns will be doubled,
^ese shafts, to open one-third of the producing area of the property, properly repre-
*eDt one-third of the company's capital, or £1,666,667, which, running at 6 per cent, per
y>iAT (not a high rate for mining capital), properly has charged against it £100,000
'titerest per year in the capital accounts of those who hold the shares. This is at the
fate of £3333 per month.

If the three shafts are driven at the rate of 80 feet per month each, the maximum

attained irithout bonus rewards (or 240 feet total), the interest being consumed is £38.

If they were driven at an average of 110 feet each month (a rate which it is believed

[ f^tild be maintained over considerable periods, or until some nntoward circumstance,

: ^ke A temporary inburst of water, should happen), the total footage per month would

I ** 830 feet, and the interest running would be, say, £25 per foot. This more rapid

' 'He of driving, huice, would save to the shareholders, in interest on their investments

^ 11 P"^' ^^^ F^^ ^^ ^^ shaft, which is materially more than 50 per cent of the cost of

■Qe work thus far done on these particular shafts, and is over, w per cent, of the least

^Oat per foot attained in them.

alulyln Sim-
mu luid Jick
ProprKtaij
Uio^ Ilinc
da*p lavil
■lwf&

426 IVlr. W; Hall*8 Bvldenoe.

This is a conservative example, which may well iind its counterpart in practice ii
matters in future run smoothly, and the bonus system is operated to best advantage
The data for this illue^ration were furnished me through Mr. Webb, consulting
en^neer to the company, by Mr. Watson, manager, who has made some even strongei
deductions in the same line of argument, showing economy and advantage of th<
bonus system in shaft-sinking. I submit these figures as illustrating, locally, the
advantages of a system, which I have proven in the construction of can^s and drivin|
of tunnels in other countriea

Bonus eystem I now askyour attention to a point as to actual comparative costs. You may hi
th^'wLgeBys" told that somc shaft or shafts, wherein labour was paid by the day, without the extw
*•"*• incentive of a bonus, have been put down at less rates per foot than those where th€

bonus system was adopted. Having enquired into this matter, I suggest that, befon
you hesitate to fully appreciate and accept the advantages of the l^nus system anc
its underlying principle, you make enquiry : First — As to the comparative size anc
character of the shaft or shafts alleged to have been put down more cheaply ; Second
— As to the nature of the material through which sunk ; Third — As to whether it w«
not an incline shaft sunk on a mine already operative, and from which drifts or leveL
were at the same time being driven either way on the reef.

You will see immediately that in the case of a company sinking deep-level shaftf
only, aU the hoisting expense on surface work, and all the office, management, profes*
sional and other costs, have to be charged proportionately against each foot oi shafl
sunk. There is no other work being done to cnarge part of them to. But in the case
of a shaft being dropped down the reef on an operative mine, all this is quite different
In the first place, there is charged to that shaft, or incline, only its proportionate part
of all the general expense of the mine — the mine office, the Johannesourg office, and
London office expense, the management, professional service ; and such items as in
their entirety went against the shaft or shafts alone in the deep-level instance, are in
the operative outcrop mine instance, divided and charged against a number of facee
being driven in developing the mine, and against the stoping for ore output through
other inclinea Then, again, as soon as drives commence to be made from the nevi
incline, the general expenses and hoisting costs are again distributed against the
footage made on all these faces for each month.

Thus, I think you will find, on careful and complete enquiry, that there are no
cases where nearly as cheap work has been done in shaft-sinking by day labour with-
out the incentive of a bonus, as has been done under influence of rewards for extn
exertion.
Objections to And now we have seen that the bonus system operates greatly to the shaie-
bonus^tem. holders' benefit, what are the objections to it? That it enables common miners to
make very much higher wages than miners usually do or should ; and that it has and
may again enable a common miner to draw from a company as much money in •
month as high-grade professional men can earn in like time. This is alleged to be es«
travagant waste of company money. In the face of the facts and deductions which
have been shown you, this ground of objection is untenable.

The primanr conclusion from the facts must be that the company saves money,
and the shareholders make money under the operation of the bonus system. N(A-
withstanding the miner receives a higher wage, taking time and work done into
consideration, the bonus system is the cfieapest Even it the cost per foot, or other
unit of work, were as much under the bonus system as by the day wage, yet it wooU
save the time and the interest and the mine profit due to the time, which are vat/
handsome considerations for the shareholder.

Mr. W. Hairs Evidence. 427

But beyond this, even, there is the benefit to the entire force on a property,

Tirhich rewajrd of merit on ifair competition among members of that force produces ;

jmd the bonus system, properly apphed, is not only a money maker to the shareholder,

"but a reward oi merit to the miner. Where labour is graded in classes by mere

Tiaming of trade, and all individuals in each class or trade are paid alike a standard

"wage K)r that class — as all carpenters, all miners, the same for each in each calling —

"there is absolutely no reward for industry, extra intelligence, or special skill.

It is nonsense to say : " If a man does not come up to the mark, discharge him."

AVhat mark is meant ? Men in all callings are graded, as to result they will produce,

:£ rem very bad, bad, indifferent, fairly good, good, better, best, and extra. What is

""the standard ? The mediocre ? That would be an injustice to all above, and when

^V) graded in reward, the best men di-op to that plane, while those below, being paid

^ks much as any, have no incentive to do better than their ordinary inefficient doing.

The true way, therefore, is to grade men on the pay-roll according to their
<3eserts — their industry, good faith, and skill. This makes active-brained, industrious
xnen of them, and none but the stupid dolts or the incorrigible loafers will fail to be
iDenefited by recognition of special merit in some members of their class. The result
TJB the greater amount and better quality of work all round. If some men are chosen
T3y reason of their ability or push, and are given a job where they may win a very
^substantial bonus, all the fairly good men in that force will strive to merit the same
.favour at the hands of the manager.

Moreover — and this is a point which I desire to bring specially to your atten- Principle of ixm-
'.tdon — the principle of this bonus system is that which goes by the common name in ?^p'ubiioan
America, and probably elsewhere, of " Let the best man win." That is the principle p""*^*?***
xmderlying the republican form of Government. It works as well in industrial
matters as in national affairs, and no republic can long stand which resolutely turns
its hack upon it, either as applied to national affairs or to industrial affairs within its
borders.

The very reverse of this principle is that which dictates the grading of men's
^ages simply by trade. One trade, one wage, results in classifications of men which
breed discontent and uprisings, such as monarchical forms of Government can best
^pe witL The principle of this grading is an autocratic one, not a republican one.

I respectfully submit that, whatever action this Government takes with relation
to mine labour matters, it should do so with the idea of encouraging application of
tliifi nrinciple of " Let the best man win."

Nor cdiould this idea stop with the handling of the white labour problem. It principle of bon-
Aould be carried into the management of kaffirs as well There should be some ij^'SJ^^iS^ na'-

rBm of grading according to skill or proficiency, or some system of bonus reward ti^win white
amount of work done, and with this should go some gradation of pay due to
Icpgih of service in one employ. The boy coming anew to a mine should not be per-
i&itted, no matter what his skill, to take pay equal to those of the same grade who
k«d been working on the property for, say, three months or six months.

If this idea could be carried out — if the good boys knew that, on deserting from
'<^6 mine they could not under three or six months get an equal wage on another —
they would not desert. It may be said that this is human nature, but is not kaffir
iiaUire. I simply submit that the kafiJr is working for money, and it would not take Native ubour.
Mm long to belcome altogether " human " in this point if it were faithfully enfoi*ced.
•Ai^ this^ in my opinion, is the key to the kafl&r labour problem on these minea It
^ aaid that the kaffir is by nature a child, and must be treated as such. Well, there
:<^ vaat families of these children here, and they have as many fathers and mothers
*k(Aang out for them as there are mine managements. Each such pair of parents

428 Mr. W. Hall's Evidence.

spoils these children for all the other fathers and mothers, by taking the wayward
runaways into their mine families on application, on an equal footing to that held in
the family they left. If the deserting boys could no( get into other mine families
without sacrifice of standing, they would not desert.

cioM oiganisa- ^^ short, the mine managements must work together in this matter. For that
tion of mijie purpose they must be organised as one institution, and every mine management must
nec€«a!o\^" DC in it. This could only be effected under a law of the Republic. The details of the
law should be presented by the representative Chambers of Mines. The operation of
it should be wnoUy in the hands of the organisation created by it, under general
supervision — not absolute dictation — of the Government. Bv some such means only»
can I see the way at all clear to handle the kaffir labour problem of the future of the
Rand.
poMibie expan- For purposcs of my water supply study here I have, with several consulting
indurtiyunder engineers of the large mining managements, made a study in detail of the possible
JJnly^J^**^® extent to which mining may be developed on the Rand, should the industry be
relieved of undue burdens, and be permitted to expand under entirely favourable
FoflBibie omnber Conditions. The general result is that within the fifteen miles of the Central Rand
oentelaiSandf somcwhat over 6,000 stamps could advantageously be supplied with ore and brought
into operation.

This estimate takes into consideration the development of the two tiers of deep*
levels, an increase of stamps on some outcrop properties, as well as the entire working
Actual number out of other outcrop properties. There are now witliin this fifteen miles of territory
oentnJ^d." 2,550 stamps, of which 2,330 are believed to be working. The study has been very
carefully entered into for this pentral part of the Rana, and an approximation has
been made for the extension west to and including Randfontein, and east to and
including Modderfontein.

I conclude that the population directly dependent on mine work, and almost
wholly living on or closely adjacent to mine properties, for operating, not oonstractioD»
work, might be expected to reach, under the most favourable conditions, for the fifteen
Poflsibie popou- miles of Central Koad, 12,000 whites and 100,000 kaffirs, and as many more for the
wcmof central ^^^ extensions combined. On top of these figures would go the general mercantik
and business population, and some labour yet employed on surface constructicD8»
though most of this latter would, by time of full stamp development, have beoi
finished.

Aside from the city of Johannesburg, under these most favourable oonditionSr
there is a possibility for employing, therefore, say 30,000 whites and 250,000 blacks
on the Rand. It is not, for purposes of my point, necessary to assume the fuU figares.
We might accept 25,000 whites and 200,000 blacks outside of the city population ai*
not unreasonable probability if very substantial reliefs are granted ; and this, witlua
10 vears : always provided that the black population can be made to come, stay ami
work faithfully at the lower wage necessary for development of this state of UiiDgB.
Besides all this population, there would be tne city.

^t«n"o?!SmS* ^^ ^^® present system of administering Government affairs should be kept up, ft
istrauon re- would then take a veiy large proportion of able-bodied burghers of the I^paDGe
r^mieJu^ ^ simply to administer the laws. This could not be, and at the same time establish*
revenue system which would relieve the mining industry and permit the deveI<q)iiieot
contemplated. The expense of administration would advance proportionately to tho
development, and that would at once arrest all progress. Moi*eover, the advanesi
agriculture necessary to advance the mining industry, could not itself be a/GOomphAti
were the burghers nearly all occupied in public service.

Mr. W. Hall's Evidencer 429

The conclusions are unavoidable — (1) the burgher population must increase, pro- Buprher pot
K)rtionately, even more rapidly than the mining population ; (2) the administration in^ei^
»f laws on the Rand must be ^eatly changed ; or (3) there can be no very great Adminictrftt
dvance, no matter what reliefs be grant^ in the way of cheaper dynamite and Band mLt
heaper transportation, and grievances will continue to exist •itewd.

The administration of kaffir labour, and of all mine labour matters at the very
sast, will have to be left to the mine managements under some Government law,
rhich would make all of them come in and stay in it for their own good and that
f the country. The anomalous condition of 50,000 to 70,000 white people and
50,000 blacks, including city populations, massed in a limited area, and wholly
ovemed and kept in order, even as to local matters, by guards and administrative
Bicers drawn from a sparse agiicultural population, cannot be made to work. It
rould be in every way unnatural and repugnant as a condition within a republic.

I refer to this merely as a labour question; not a political one outeide of that jhei^],o„yp„,^
Qinediate connection. It is facing this inevitable condition, gradually growing more ^**^
sate, — no matter how good-natured and well-disposed all the people, burghers,
itlandera, and kaffirs may be — which presents the real problem of your country
Mlay, a problem which will come up for solution as a fiscal one — one oi revenue. It
sed not come up in any other form to force ^ou to solve it effectually, and you cannot
Msibly do so without the close co-operation in public affairs of those who are
itlandera to your land, but producers of its wealth.

The problem can only be solved by making the uitlander feel at home here, as a inooipomtion d
ma/ide resident, under, and participant in Government, at least of some sort, local ^^^i*°<^*^
r district. As to the kaffir, he cannot be made to become a progressive and efficient
iner and reliable employee under the unnatural condition m which he is now held,
lat he should have at least a tempoi*ary home within no great distance of the mine NativeiocatioDi.
aire, to which he could inexpensively retire after his engagements on mine service
) over, and with the view of returning to mine work, seems to me to be absolutely
eniial to the end in view ; or else he must be carried by rail, at a merely nominal
e, practically, to and from the country of his home. As I have tried to impress
u you, your problem is a very serious one, altogether aside from the political and
^4jmder grievance form, in which it ha^ heretofore come up. This mining, for
ons which already appear in evidence before you, is to be ranked in matters of
emmental economy, with the staple industries in other countriea

It has been said in evidence that there is no competition in gold mining. This is oomMtitkm in
in a sense ; but not true as applied to the gold mining of the Transvaal at the f^L^ «Sd'
nt time. It is yet a question oi capitalisation for the deep-level mines and those ^onign fleuit.
3 not already advanced to near the paying stage, and the Transvaal fields, in the
7 markete of the world, must compete for that capital as against other regions,
tecolative venture. Moreover, there is and must be competition among cuques
uiciers to secure for their properties the capital which is willing to come here,
e most successful and best managements wul command the strongest financial
L

us all the elements of great industrial problems are here present, and your
1 is an industrial one of Uie highest order and most intricate complications, and
alt with accordingly.

\ sanitary condition of Johannesburg and the mines, and the svstem of water Smitwy reform
ind refuse disposal, are not such as will admit expansion of the industry as
fore estimatea. There will be disaster here if these subjects are not taJcen
in hand for the public good. Tou only have to look at what is happening in

430 Mr. W. Hosken's Evidence.

certain parts of your country now, in the way of disease, destruction, and death, to*
form a small idea of what will happen here if matters are not speedily corrected

The way to effect this correction is not to grant concessions which will make-
speculative monopolies of sewerage and municipal water supplying. These matters,,
above all things, must be conducted honestly and faithfully for the public good, and
hanneiburg uot as speculations. You never will bring mining to a reasonably low figure of cost
mierroppiy. ^j^^^j] y^^ ho^vQ a cheap and abundant city watSr supply for all purposea This matter
of water rates is, the world over, an index to industrial conditiona It will be here,
and you cannot prevent it. Dear water, dear living, dear mining ; it is always the
case.

To relieve this water supply and sewerage situation there are enough earnest
people interested on the Rand to supply the capital out of hand, to place first-class
works at the disposal of the city of Johannesburg at lowest possible cost price, with
lowest rates of interest. And I venture to say that such an arrangement oould be
made if your Government would do its part and enable public-spirited capital to
accomplish such an end without having to meet the demands of Government conces-
sionaires.

ctonoeniout. From the standpoint of industrial economy the granting of exclusive con-

cessions is a bad feature of Transvaal affairs. It finds no counterpart in the
United States, and never did. Although it may have been necessary here in
the past, it certainly is not so now. This country is at a stage where open
competition on republican principles can make it great for the burghers; but it
is also at a stage where a failure to recognise the principle, " Let the best man win,"
may ruin it for them through the working of natural laws in industrial development^

Agriculture. While the crucial question, as directly affecting the mines, is, in my judgment, th^

labour question, there goes with it the problem of agricultural development This i^
an agricultural country, some of it as good as any in the world. If the Government
would actively and earnestly take steps to advance agriculture, in the li^ht of bent
examples and practice the world over, and in a way suited to the people and the

Qoet of living, couutry itself , the longest possible step would be taken to permanently settle the
problem of cheap mining by settling the problem of cheap living.

Mr. w. HoBken's Mb. William Hosken called, Said :

evidence.

I am a merchant resident in Johannesburg since 1889, and represent the Chamber
conflnnation of of Commercc. I affirm that the statement of Mr. Pistorius is true. The Chamber of
iutemm.'*"^ Commerce requested me to attend to give further evidence, especiallv with regard to
railway questions. When this Industrial Commission was appointed, the representa-
tives of wie Chamber of Commerce and Mercantile Association held special meetii^
Reaeone for pre. to consider the position and formulate a statement affirming that the causes of the
eentdepreeeion present depression were effected as follows : — (a) The Netherlands Railway adminis-
tration. Such as the differential and excessive rates, and lack of capable aaminisbrar
tion. (6) The excessive cost of dynamite, (c) Excessive taxation, {d) The industrial
and trading monopolies, such as are being used for the development of industA
enterprise, (e) As shown by the insecurity evidenced by the withdmwal of ca|»t^
by investors from the Transvaal, and the difficulty of arranging financial transactior
and the want of firm legal measures to suppress gambling, especially in the tarn

South African S^CCpS.

mdustriee. in- I will cudcavour in my evidence to avoid going over the same ground traver
^Jitiw.d^n* by previous witnesses. Before teking up the definite points referred to, I shall
^i^ining ^^ attention of the Commission to the industrial and economic^fact that South Af

Mr. W. Hosken's Evidenoe. 43i

18 a mining country, and all other industries are dependent on the mining industry,
not excepting agriculture. In proof of this, I have a table which shows that in 1896
die imports through the Cape and Natal amounted in value to £23,372,000, and the vaiaeandnatun
exports totalled £17,878,000. Of the minerals, gold showed a value of £8,355,000; fi!"J^^rT
diamonds, £4,640,000. Agidcultural products exported include grain, flowers, grass ^^^^ ^JJJJ
(to the extent from the Cape of £20,000), spirits, wine, bark, oathay, feathers, wool, N»ti5?/i^
hides, skins, hair, and horns, totalling in all about £4,166,000. For other agricultural ^^^^^ ^\
products the markets are found in this country through the mining industry. The mininj indul
markets are the mining towns, and the places through which the traffic for the mines ^'
passes. I don't wish to minimise the value and importance of the primary industry —
namely, agriculture — but in this country the mining industry is pre-eminently the
backbone and support of the whole country. The crops I have referred to are sold in
the mining towns, and at the ports where the traffic for the mines passes through.
The economic question outlined by these figures has in the past not received sufficient
attention by even the people or the Governments in South Africa. I wish to put
forward as a practical proposition to the Commission : If an acre of ground is culti-
vated for minerals, it should produce say £10,000 during a certain period. Is it not an
eq^ual advantage to the State and community to make the production through the
mineral kingdom, as it would be for the same return to be made through
the vegetable kingdom. The experience gained in other countries also assures us
that the successful working of the mining industry brings success for all other
industries with it, and especially success for agriculture. For examples, we can look
to California, and Australia, and New Zealand. These countries were, in the first
instance, exploited for minerals, and success in mineral work has enabled them to
become foremost in agriculture. Therefore, the true policy for South Africa, and
especially for the Transvaal, is to aid the mining industry in eveiy possible way. I will
now proceed to give definito evidence regarding the various points that the Chamber
of Commerce considered so important. In the first place, there is the Netherlands xheNetheriandi
Railway. In this connection the Chamber of Commerce wishes me to make some ^^•"'^y-
remarks on Mr. Middelberg's statement, laid before this Commission. Mr. Middelberg Mr.MUideiber^fl
commences by correctly stating the accusation made against the Netherlands Railway, •***«»*°*-
that it is taking an undue share of the transport dues from the ports to Johannesburg.
He then proceeds to illustrate and defend his action in exacting this undue share by
the analogy of a tenant with a house having to pay certain rent to the two or more
joint-owners. Mr. Middelberg says it would oe a matter of indifference to the tenant
as to how the rent was divided amongst the ownera We accept the illustration as
showing the position we are in as regards the South African railways. But Mr.
Middelberg overlooks a most important point. He assumes that a tenant is satisfied
with the rent. We are not satisfied. That entirely alters the proposition put
forward by Mr. Middelberg. In pursuing the analogy further : Say the house con-
sists of six rooms, all equally essential to the comfort and well-being of the tenant.
The rent is £4 18s. 4d. per month — I take that sum as it represente the rough goods'
rate per ton from Durban to Johannesburg. The tenant learns that the joint pro-
prietors own the property in rooms, and uiat four rooms belong to one of the owners,
and two to the other, but that the owner of the two rooms claims half the rent for
his share. The tenant wante his rent reduced, and first calls on the owner of the two
rooms to reduce his rent to the same standard as that of the owner of four rooma
Having secured that reduction, the tenant will proceed to press both owners for a
further reduction. That is the position in the Transvaal to-day. The owner of the
{iour rooms can be likened to Natal, which has 309 miles of railway on the line we
]iave nnder consideration, and the two rooms the Netherlands, who have 178 miles.

422 Mr. W. Hall's Evideiice.

^■^ta

receive salaries not more than the satne 15 to 30 per cent higher than they would
command in the same American mine centres for like servicea

If we compare these latter percentages, as to wages and salaries, with those of the
illustration just given you, as to relative cost of living, and remember the rule-:— that coal
of living must be an index of the wage — we find that it is not the higher paid white
employees on the Band who are reaping the harvest, if one is being garnered at present
rate& I take up the more direct application of the foregoing to the problem which
you have in hand.
Avenge work- You have iu evidence, so far as I have observed, the cost of mining and reduction
m&«§?n Rand ^^ ^^cs ou the Band, varying from about 24a to about 29a per ton milled. I have
collected some data, which show a higher range, namely, up to 32a per ton ; and the
result of my enquiry is rather to the point that there is more ore mmed and redoeed
on the Band at costs over 29s., than under that figure. Next, it appears that the pro-
portionate part due to white labour, of the total cost, ranges from 28 to 35 per cent
And, again, I assume, upon the basis of my own enquiry and comparisons, that tiie
average cost of living of all white mine employees is 25 to 35 per cent greater here
than in the American mining countries spoken of.
Ponibie reduc- If, upou thesc rates and ratios, we estimate how far wages might, without afifecting
toJTc^lSIrt fcte employees' profits, be cut down, and how much cost of production would thus to
*h feduc- lowerea, ii the cost of living here were reduced to the American standard, and the
of^uviAf. wages proportionately lowered, we would have a result somewhat as follows : — Cost of
mining and reduction, 24a to 32a ; part due to labour, say 32 per cent, 7'68-10'248l
part due to excess cost of living ; if rates here are 35 per cent higher, 2'69-3*58a ; if
rates here are 30 per cent higher, 2'30-3'07a ; if rates here are 25 per cent, higher,
I'92-2*56a From this it appears that the difference in cost of living here, as comj^red
to American mining regions, may account for between, say 2a as a minimum, and 3*58a
as a maximum ; that is, if cost of living for the white man were reduced here to what
might be considered a reasonable basis, all wages and salaries could be cut, without
diminishing the workers* profits, so as to reduce the cost of producing the gold from 2&

to 3-58s.

This reasoning is based, you will observe, upon the assumption that the cost of
living, at the mean of the wage scale, is a correct index of the fair average wage rate

If, now, we consider the application of this conclusion to the present wage rate, we
have an interesting result, ana that is, that the higher cost of white labour of all
kinds, engaged in mining and for the mining companies, is accounted for, or some-
what more than accounted for, by the difference in the cost of the necessaries, and the
amounts of expenditure, of life.

And, now, I come to a matter as to which I speak with confidence, because of
personal experience in the management of labour, both skilled and unskilled, and oft
wide opportimity to observe and hear the results of different systems of handling

Bonoa qrstem. labour. This is the bonus system of rewarding extra exertion on the part of minera
There appears to be here a leaning towards an opinion that the system is unfair and
extravagant I desire to testify, not only to its equability and economv, but to it8
wisdom for other reasons, and to illustrate my testimony by some facts I have
collected here, and by results of experience elsewhere. At the outset I desire to
explain that I use the words " bonus system " as expressive of all forms of graded
payment, whereunder a premium is set upon extra exertion, as evidenced by exoeae of
results over the normal, due to simple day- wage resulta In this category would oome
the graded-rate contract system, as well as the bonus system proper.

TiM boiiiit tj^ The higher grade American contractors on heavy engineering constructioiifl, •>
tm in Amtit' ^^| ^ managers of great manufacturing works» have long reco^;nised the justice d

Mr. W. Hairs Evidence. 428

ihe Tinderlyiiif principle and the value to them of its application in management of
their labour (forces. Special rewards, extra pay, advances of rates of pay, made
voluntarily to those men who prove specially active on arduous and dangerous duty,
led to the more orderly bonus system, which is quite common in some branches of
engineering construction, and in great iron and steel working establishments, to my
own personal knowledge. Certainly, high-grade contractors and managers whose
work is systematised, and the costs and relative costs known to a penny, would not
adopt a system which did not pay them. If it would pay a contractor to follow that
63r8tem in driving great tunnels, as I know from expenence it does, it would pay him
to adopt it in sinking a shaft And if it would pay him to adopt it in shaft work, it
should equally pay a mining company to do the same. That it does pay here you
have had illustrated to you in the testimony of Mr. Catlin.

I endeavour to £ive some further illustration of its advantages, not alone on
account of the direct benefits to be derived from the working of the system itself, but Bonus ^yrt«m
because there are very important correlative benefits which have not been brought to ^"•**^
your notice, and because it embodies a principle whose application is indispensable to
the solving of your entire labour problem — ^the great problem for the Band and for
the South African Republic

The mining industry has appealed to Government for relief of burdens. Repre-
sentatives of Qovemment say that there is a desire on the part of Government to
idstor the industry : It only wants to see its way clear to that end. And they ask
what the industry proposes to do to help itsell Members of the industry's staff point
mit that one way is to extend the bonus system. Whereupon, there are those in
prominent positions who imply or say, that the system, so far from being economical,
16 extravagant To entertain this latter assertion, to adopt ite idea, woiSd be a fatal
mistake for your C!ommission to fall into, for the reason above given.

I thererore ask your indulgence to present the matter somewhat more fully than
Mr. Catlin could do, owing to his being on the eve of ^ing away on vacation, when
he appeared before you. First: CJompleting Mr. CatTin's figures as to the Catlin b^°^^ ■gjg»
«hiikft Passing over the first two or three months, when the work was not yet 2h!aft
raxmixig regularly, there came two months, whose average rate was 60 feet per month,
st a cost of £21 15a 8d. per foot Then the next five months, during which work
was regular, the mean monthly progress was 128*3 feet, at an average cost of
;£19 Ss. 6d. per foot Now, it is well-KUOwn that such shafte had never before been
sunk by the ungraded day- wage system, at a faster rate than 80 feet per month, or a
lower cost than about £24 per foot The far better result attained in the Catlin shaft
— ^running the cost down in one month as low as £18 6a and, in another month, the
cate of speed up to 142 feet — ^is due to the incentive of the premium on extra
exertion. It does seem that there can be no disputing the lesson taught by such
figorea

I ask your attention to a business simile pointing this lesson. If a mercantile Eoon^ofbow
liouse makes a shipment of goods over a long voyage route, its manager considers ™'^^™°*
first, cost, interest, insurance, meeting of demand, and profit A question with him is
MB to whether he will order shipment by sailing vessel or by steamship, which will
take leas than half the time, but whose freight rates are greater. The world's ex-
perience shows that it pays the merchant to employ the quicker mode of transit at the
^^her freighting cost The story is told by figures of the capitel account in his
booka An exacUy similar storv, only with far more favourable results, would be told
by the capital account of a mining company engaged in sinking or developing work,
were the books kept so that the point might be brought out, and if the bonus
aystem were operated as the fast^n^ steanSdiip line against the one-grade-wage '

4S4 Mn W. Hairb £vJdencf^

s^rstem representing the comparatively alow line of sailing jpackets. Sinking a deep*
level shaft is, in this way, an exact counterpart of freigntmg over a long voyage. £
attempt to illnstrate upon a basis of the experience on the Band
Hypothetiofti The Simmer and Jack East Company has a working capital of £186,i300 sub-
o^ of 'tlw«e scribed for the purpose of putting down to the reefs three shafts, with probable depths.
deep -level estimated at 2,400, 2,500, and 2,700 ft. As these are nearly the same, we may say
mer and Jack that £62,000, Quc-third of the above total working capital for them, may be charged
^«^M!d w against each in capital account, and against that amount interest at, we will say, 6 per
us^tem res- eeut. should be charged in such account. If, now, the shafts are put down at the xute
of 60 ft. per month, it will take 40, 41 §, and 45 months respectively to sink them, and
the amounts of interest which the capital account will show against the cost for each
will be £12,400f £12,916, and £13,950 respectively. Adding these amounts to the
principal in each case, the shafts will have cost the shareholders who put up their
money originally and waited for return, £74,400, £74,916, and £75,950 respectively.
But if the shafts are driven at double the rate of speed (120 ft. per month) the work
would be accomplished in half the time, and half the above amounts of interest would
be saved to the shareholders, because the mine could be Inrought into paying oonditioa
with the saving of that amount of time to which that amount of interest on shaft
working capital would be due.
^ikccoun?*^ In the above instance the saving to the Simmer and Jack East capital aooount^
bonuBqrstem. and to shareholders, would amount to £19,633 — a very handsome amount, you must
admit, to be saved by good management That this is an actual saving, evei^
business man who keeps a capital account, will testify. And, be it remembered, it is
Saving in work- entirely aside from the saving in actual cost of the shafts themselves, due to the lower
teiM^witeS ^^^ ^^ ^^^^ P®^ ^^^^ attained, with the higher rate of speed in driving. The high
speed bonus system is thus seen to operate both wajra

I next note what the total saving might be by it in the above illustrative case.

Sunk by day labour, unencourafi^ed, and at the rate Mr. Catlin found it cost to sink

similar shafts in the same neighbourhood — say, £24 per foot — ^the 7,600 feet

ag^egate footage in depth of these three shafts, would cost £182,400 — a small margin,

only, less than the working capital £186,000, provided for them. Sunk under the

bonus system at, say, £20 per foot (which is nearly 10s. more than Mr. Catlin's least

rate under it) the cost would be £152,000. The direct saving in money would be

£30,400 ; which with the saving of £19,633 to the (Company's capital account and th»

shareholders, makes £60,033, which amount is nearly 40 per cent, on the actual eoetw

of the shafts, or 33 per cent of the working capital provided for them.

Saving in pro But this is uot sll ; there would be a saving of 20 to 22^ months' time ; and this

duS of' £ne *^™® ^^ *'^® ^^^ development of the enterprise is worth money to the shareholders is

ff^^d^bon- other ways than in saving interest on the working capital provided for the 8haft&

usqrvfeem. j,^^ instance, to shareholders who hold their shares, say, for the 20 to 22 J months after

* the mine commences to produce, the saving of that len^h of time in the shaft sinkizig

is worth their j9ro rata of all the net product in that time.

It may be said that I have calculated interest on a capital which is greater than is
required for the shafts. - And so it would, in such a case, prove to be, but the estimato
of capital required for the shafts was based on previous experience and rates for work
here. That it is possible to do the work for a less sum, and thereby save, not only Ite
interest on the whole sum for a very material length of time, but also a good part.of
the capital itself, is due to the operation of the bonus system. For ocHistructioiiAtf
uncertain in incidental difficulties as shaft sinking, a liberal margin of capital muflt W
provided in the estimates;
BapMshafteink. rji|^^ above casc is a hypothetical one, and no deep-level shaft haa been eomplfltoly

Mr. W: Hall's Evidence.

425

sank at as great an average rate of speed as 120 feet per month, with as low an
average cost as £20 per foot. But experience thus far warrants my using these
figures for the purpose of illustrating a principle. Mr. Catlin's best speed was even
much higher, 142 feet per month ; his average for five months was 128*3 feet, at a
mean cost of £19 5& 6d., as we have seen. The actual costs of, and rates in, the
Simmer and Jack East shafts themselves show figures ranging from different groups
of months, as follows : —

Sbatt

Meandeoths

Total timet

Total ootti

Total in tenet

D.ptb.

ot two monflif tub.

fttratM.

at rates.

* oncoets.

Feet.

Coeta.

IfODthl.

2.400

£23 14

26}

£56,900

£7,681

Ooetof,andratee
of epeed in

2,400

112

20 9

49,120

5,403

■inUngof Sim-
mer and Jack

2,500

23 13

59,146

8,872

shafts.

2,500

22 4

65,510

7,216

2,700

28 1

75,735

16,288

2,700

25 3

67,994

10,878

The figures which I use in this statement were made up by the resident secretary
of the company, Mr. Roberts, and have been furnished to me by Mr. Webb, consulting
engineer to the company, arranged at my suggestion, so as to illustrate the point I
mfuce, namely, that with increased speed comes decreased cost per foot, decreased time
necessary to sink the shaft, decreased cost of the work as a whole, and, of course,
proportionately less interest to be charged in the capital account Examination of
eaea couplet — one for each of the three shafts, separately — tells the story. The cases
are fairly selected. The incentive of the bonus produced the favourable result in
every case.

I beg to submit another illustration of the economy to be attained by rapid
sinking oi deep-level shafts. The nominal capital of the Simmer and Jack Proprietary
Mines, Idmitea, is £5,000,000. The shares have actually been taken by the puolic and
the vendors at rates up to £7 10s., but to be entirely conservative, I adopt the nominal
taie of £5, which produces the capitalisation above quoted. Now, the shareholders
ftte waiting for returns on their investments ; the outcrop part of the property is
being worked, and paying, but three deep-level shafts are being sunk, upon the com-
^Uon of which the opening of fully one-third of the property necessarily dependa
Wlien these are producing ore, it is expected that the monthly returns will be doubled.
These shafts, to open one-third of the producing area of the property, properly repre-
^nt one-third of the company's capital, or £1,666,667, which, running at 6 per cent per
^ear (not a high rate for mining capital), properly has charged against it £100,000
^t^rest per year in the capital accounts of those who hold the shares. This is at the
^ of £8,333 per month.

tf the three shafts are driven at the rate of 80 feet per month each, the maximum
attained vrithout bonus rewards (or 240 feet total), the interest being consumed is £38.
If they were driven at an average of 110 feet each month (a rate which it is believed
jj|>0ld be maintained over considerable periods, or until some untoward circumstance,
Ijke ja temporary inburst of water, should happen), the total footage per month woiUd
^ 830 feet, jand the interest running would oe, say, £25 per foot. This more rapid
^^ of driving, httice, would save to the shareholders^ in interest *on their investments
^ par, £13 per foot of shaft, which is materially more than 50 per cent of the cost of
^ work thus far done on these particular shaus, and is over. 60 per cent, of the least
^Qst per foot attained in them.

Economy of ra-

1>id shaft sink*
ng in deep
levels, partic-
ularly in Sim-
mer and Jack
Proprietary
MinesT three
deep level
■hafta.

426 Mr. W; Hall*« Bvidenee.

This is a conservative example, which may well find its counterpart in practice if
matters in future run smoothly, and the bonus system is operated to best advantage.
The data for this illustration were furnished me through Mr. Webb, consulting
engineer to the company, by Mr. Watson, manager, who has made some even stronger
deductions in the same line of argument, showing economy and advantage of the
bonus system in shaft-sinking. I submit these figures as illustrating, locally, the
advantages of a system, which I have proven in the construction of cands and driving
of tunnels in other countries.
Bonus system I now askyour attention to a point as to actual comparative costs. You may be
^^J^^*^ told that some shaft or shafts, wherein labour was paid by the day, without the extra
*•"• incentive of a bonus, have been put down at less rates per foot than those where the

bonus system was adopted. Having enquired into this matter, I suggest that, before
you hesitate to fully appreciate and accept the advantages of the bonus system and
its underlying principle, you make enquiry : First — As to the comparative size and
character of the shaft or shafts alleged to have been put down more cheaply ; Second
— As to the nature of the material through which sunk ; Third — As to whether it was
not an incline shaft sunk on a mine already operative, and from which drifts or levels
were at the same time being driven either way on the reef.

Tou will see immediately that in the case of a company sinking deep-level shafts
only, aU the hoisting expense on surface work, and all the office, management, profes-
sional and other costs, have to be charged proportionately against each foot oi shaft
sunk. There is no other work being done to cnarge part of them to. But in the case
of a shaft being dropped down the reef on an operative mine, all this is quite different.
In the first place, there is charged to that shaft, or incline, only its proportionate part
of all the general expense of the mine — the mine office, the tfohannesburg office, and
London office expense, the management, professional service ; and such items as in
their entirety went against the shaft or shafts alone in the deep-level instance, are in
the operative outcrop mine instance, divided and charged against a number of &oes
being driven in dev^oping the mine, and against the stoping for ore output through
other incline& Then, again, as soon as drives commence to be made from the new
incline, the general expenses and hoisting costs are again distributed against the
footage made on all these faces for each month.

Thus, I think you will find, on careful and complete enquiry, that there are no
cases where nearly as cheap work has been done in shaft-sinking by day labour with*
out the incentive of a bonus, as has been done under influence of rewards for ext»
exertion.
Objections to And uow wc havc seen that the bonus system operates greatly to the shape-
bonus system, holders' benefit, what are the objections to it? That it enables common miners to
make very much higher wages than miners usually do or should ; and that it has mi
may again enable a common miner to draw from a company as much money ui i
month as high-grade professional men can earn in like time. This is alleged to be tf *
travagant waste of company money. In the face of the facts and deductions whkh
have been shown you, this ground of objection is untenable.

The primary conclusion from the facts must be that the company saves mooeifi
and the shareholders make money under the operation of the bonus system. VAr
withstanding the miner receives a higher wage, taking time and work done into
consideration, the bonus system is the cheapest Even if the cost per foot, or otte
unit of work, were as much under the bonus system as by t)ie day wage, yet it wooU
save the time and the interest and the mine profit due to the time, which ate yifj
handsome considerations for the shareholder.

Mr. W. Hall's Evidence.

But beyoad this, even, there is the benefit to the entire force on a property,
which reward of merit oq fair competition among members of that force produces ;
and the bonus system, properly applied, is not only a money maker to the shareholder,
but a reward of merit to the miner. Where labour is graded in classes by mere
namine of trade, and all individuals in each class or trade are paid alike a standard
wage for that class — aa all can>enters, all miners, the same for each in each calling —
*here is absolutely no reward for industry, extra intelligence, or special skill.

It ia nonsense to say : " If a man does not come up to the mark, discharge him."
~What mark is meant ? Men in all callings are graded, as to result they will produce,
from very bad, bad, indifferent, fairly good, good, better, beat, and extra. What is
the standard ? The mediocre ? That would be an injustice to all above, and when
so graded in reward, the best men drop to that plane, while those below, being paid
da mach as any, have no incentive to do better than their ordinary inefficient doing.

The true way, therefore, is to grade men on the pay-roll according to their
-deserts — their industry, good faith, and skill. This makes active-brained, industrious
xnen of them, and none out the stupid dolts or the incorrigible loafers will fail to be
l3enefit«d by recognition of special merit in some members of their class. The result
■ia the greater amount and better quality of work all round. If some men are chosen
"by reason of their ability or push, and are given a job where they may win a very
-.eabstantial bonus, all the fairly good men in that force will strive to merit the same
favour at the hands of the manager.

Moreover — and this is a point which I desire to bring specially to your atten- Prind^oibon-
'tioD — the principle of this bonus system is that which goes by the common name in ?tp'S^ii^>n
i America, and probably elsewhere, of " Let the best man win." That is the principle pf^n^'p'*-
I underlying the republican form of Qovemment. It works as well in industrial
L matters at) in national affairs, and no republic can long stand which resolutely tuma
j^ ita back upon it, either as applied to national affairs or to industrial affairs within its
Jm borders.

jk llic very reverse of this principle is that which dictates the grading of men's
^1 'wages simply by trade. One trade, one wage, results in classifications of men which
J Jt ^K^d discontent and uprisings, such as monarchical forms of Government can best
■ Gop« with. The principle of uiis grading is an autocratic one, not a republican one.

I respectfully submit that, whatever action this Qovemment takes with relation
to niine labour matters, it should do so with the idea of encouraging application of
this principle of " Let the best man win."

Nor should this idea stop with the handling of the white labour problem. It iMncipieafbon-
«hould b« carried into the management of kaflSrs as well There should be some ^^.^ij'^ ^.
'^^m of grading according to skill or proficiency, or some system of bonus reward uveuia white
K>r atiiouat of work done, and with this should go some gradation of pay due to
length of service in one employ. The boy coming anew to a mine should not be per-
■Qitt«d, no matter what his skill, to take pay equal to those of the same grade who
W been working on the property for, say, three months or six months.

If tills idea could be carried out — if the good boys knew that, on deserting from
■one iDuie they could not under three or six months get an equal wage on another —
they would not desert It may be said that this is human nature, but is not kaffir
L jiBture. E simply submit that the kaffir is working for money, and it would not take Hatin labour.
I Urn long to become altogether " human " in this point if it were faithfully enforced.
Lid tills, in my opinion, is the key to the kaffir labour problem on these mines. It
_il said tli&t the kaffir is by nature a child, and must be treated as such. Well, there
<e vsat families of these children here, and they have as many fathers and mothers
^oddng oat for t^em as there are mine managements. Elach such pair of parents

428 Mr. W. Hairs Evidence.

spoils these children for all the other fathers and mothers, by taking the wayward
runaways into their mine families on application, on an equal footing to that held in
the family they left. If the deserting boys could not get into other mine families,
without sacrifice of standing, they would not desert.

Close oi^anisa. I^ short, the mine managements must work together in this matter. For that
SSn °' mSnte P^T^^**^ ^^^7 Dti^^st bc Organised as one institution, and every mine management must
necMmirr^^" DC in it. This could only be effected under a law of the Republic The details of the
law should be presented by the representative Chambers of Mines. The operation of
it should be wnoUy in the hands of the organisation created by it, under general
supervision — not absolute dictation — of the Government. By some such means only,
can I see the way at all clear to handle the kaffir labour problem of the future of the
Rand.
Possible expsn- For purposcs of my water supply study here I have, with several consulting
ii^kisuyander engineers of the large mining managements, made a study in detail of the possible
^qJu^J^]^^® extent to which mining may be developed on the Rand, should the industry be
relieved of undue burdens, and be permitted to expand under entirely favourable
Possible number conditions. The general result is that within the fifteen miles of the Central Rand
oentno'Suidr somcwhat ovcr 6,000 stamps could advantageously be supplied with ore and brought
inte operation.

This estimate takes into consideration the development of the two tiers of deep*
levels, an increase of stamps on some outcrop properties, as well as the entire working
Actual number out of Other outoroD properties. There are now witliin this fifteen miles of territory
oentnJ^!iKL° 2,550 stamps, of which 2,330 are believed to be working. The study has been very
carefully entered into for this pentral part of the Rand, and an approximation haa
been made for the extension west to and including Randfontein, and east to and
including Modderfontein.

I conclude that the population directly dependent on mine work, and almost
wholly living on or closely aojacent to mine properties, for operating, not constructioD»
work, might be expected to reach, under the most favourable conditions, for the fifteen
Possible popniA- miles of Central Road, 12,000 whites and 100,000 kaffirs, and as many more for tii0
gon^f central ^^^ exteusious Combined. On top of these figures would go the general mercantik
and business population, and some labour yet employed on surface constructions^
though most of this latter would, by time of full stamp development, have been
finished.

Aside from the city of Johannesburg, under these most favourable oonditiooB,
there is a possibility for employing, therefore, say 30,000 whites and 250,000 Uacb
on the Rand. It is not, for purposes of my point, necessary to assume the full figuM
We might accept 25,000 whites and 200,000 blacks outside of the city population ti*
not unreasonable probability if very substantial reliefs are granted ; and this, withitt
10 years : always provided that the black population can he made to come, stay aoi
work faithfully at the lower wage necessary for development of this state of wogL
Besides all this population, there would be the city.

^^^o?1^m£. ^^ ^^^ present system of administering Government affairs should be kept up, it
istimtion re- would thcu take a very large proportion of able-bodied burghers of the BepnUie
^I^J^ simply to administer the law& This could not be, and at the same time establiahft
revenue system which would relieve the mining industry and permit the developnwot
contemplated. The expense of administration would advance proportionately to tin
development, and that would at once arrest all progresa Moreover, the advanesl
agriculture necessary to advance the mining industry, could not itself be acoompHflM^
were the burghers nearly all occupied in public service.

Mr. W. Hall's Evidence!^ 429

The conclusions are unavoidable — (1) the burgher population must increase, pro- Bimcher popuu^
portionately, even more rapidly than the mining population ; (2) the administration increMed.
of laws on the Rand must be ^eatly changed ; or (3) there can be no very great Adminictrfttioo
advance, no matter what reliefs be grant^ in the way of cheaper dynamite and Band ^JILt b«
•cheaper transportation, and grievances will continue to exist. altered.

The administration of kaffir labour, and of all mine labour matters at the very
least, will have to be left to the mine managements under some Government law,
^hich would make all of them come in and stay in it for their own good and that
-of the country. The anomalous condition of 50,000 to 70,000 white people and
250,000 blacks, including city populations, massed in a limited area, and wholly
^^vemed and kept in order, even as to local matters, by guards and administrative
officers drawn from a sparse agiicultural population, cannot be made to work. It
^would be in every way unnatural and repugnant as a condition within a republic.

I refer to this merely as a labour question; not a political one outside of thatxheuboorprob*
immediate connection. It is facing this inevitable condition, gradually growing more ^^^
«cute, — no matter how good-natured and well-disposed all the people, burghers,
-uitlanders, and kaffirs may be — which presents the real problem of vour country
to-day, a problem which wUl come up for solution as a fiscal one — one of revenue. It
need not come up in any other form to force you to solve it effectually, and you cannot
possibly do so without the close co-operation in public affairs of those who are
v/Mandera to your land, but producers of its wealth.

The problem can only be solved by making the uitlander feel at home here, as a inoorpomtion ci
hanajide resident, under, and participant in Government, at least of some sort, local ^^i*°<^*^
or district. As to the kaffir, he cannot be made to become a progressive and efficient
miner and reliable employee under the unnatural condition m which he is now held.
That he should have at least a temporary home within no great distance of the mine NfttiveiocatioDi.
centre, to which he could inexpensively retire after his engagements on mine service
are over, and with the view of returning to mine work, seems to me to be absolutely
eBsential to the end in view ; or else he must be carried by rail, at a merely nominal
Tate, practically, to and from the country of his home. As I have tried to impress
upon you, your problem is a very serious one, altogether aside from the political and
utUaiider grievance form, in which it has heretofore come up. This mining, for
reasons which already appear in evidence before you, is to be ranked in matters of
Qovemmental economy, with the staple industries in other countriea

It has been said in evidence that there is no competition in gold mining. This is oompetitkm in
true in a sense ; but not true as applied to the gold mining of the Transvaal at the f^L^ «Sd'
present time. It is yet a question oi capitalisation for the deep-level mines and those 'oreiffn fleuit.
ethiAB not already advanced to near the paying stage, and the Transvaal fields, in the
Uumey markets of the world, must compete for that capital as against other regions,
tor speculative venture. Moreover, there is and must be competition among cliques
<tf financiers to secure for their properties the capital which is willing to come here,
^nd the most successful and best managements wul command the strongest financial

Thus all the elements of great industrial problems are here present, and your
Question is an industrial one of me highest order and most intricate complications, and
^ be dealt with accordingly.

The sanitary condition of Johannesburg and the mines, and the svstem of water smiuty refonn
'^^iipply and refuse disposal, are not such as will admit expansion of the industry as
fterembefere estimated. There will be disaster here if these subjects are not taken
Smugly in hand for the public good. Tou only have to look at what is happening in

430

Mr. W. Hosken's Evidence.

certain parts of your country now, in the way of disease, destruction, and death, to<
form a small idea of what will happen here if matters are not speedily corrected.

The way to effect this correction is not to grant concessions which will make
speculative monopolies of sewerage and municipal water supplying. These matters,,
aoove all things, must be conducted honestly and faithfully for the public good, and
Johannesburg uot as Speculations. You never will bring mining to a reasonably low figure of cost
water fuppiy. u^tii yQ^^ havQ B, chcap and abundant city wat^r supply for all purposea This matter
of water rates is, the world over, an index to industrial conditions. It will be here,
and you cannot prevent it. Dear water, dear living, dear mining ; it is always the
ease.

To relieve this water supply and sewerage situation there are enough earnest
people interested on the Rand to supply the capital out of hand, to place first-class
works at the disposal of the city of Johannesburg at lowest possible cost price, with
lowest rates of interest. And I venture to say that such an arrangement could be
made if your Government would do its pai-t and enable public-spirited capital to
accomplish such an end without having to meet the demands of Government conces-
sionaires.

From the standpoint of industrial economy the granting of exclusive con^
cessions is a bad feature of Transvaal affairs. It finds no counterpart in the
United States, and never did. Although it may have been necessary here in
the past, it certainly is not so now. This country is at a stage where open
competition on republican principles can make it great for the burghers; but it
is also at a stage where a failure to recognise the principle, " Let the best man win,"
may ruin it for them through the working of natural laws in industrial development.

While the crucial question, as directly affecting the mines, is, in my judgment, the
labour question, there goes with it the problem of agricultural development This ift
an agricultural country, some of it as good as any in the world. If the Government
would actively and earnestly take steps to advance agriculture, in the light of befit
examples and practice the world over, and in a way suited to the people and the
country itself, the longest possible step would be taken to permanently settle
problem of cheap mining by settling the problem of cheap living.

Gonoesniout.

Af^culture.

Qoet of living.

Mr. W. HoBken's
evidence.

Confirmation of
Mr. PlBtorltu'
•tfttoment.

Reasons for pre*
sentdeprewion

Sotith Afrioan
indtMtries, in<
eluding agfi>
culture,depen>
dent on mining
industry.

Mb. William Hosken called, said :

I am a merchant resident in Johannesburg since 1889, and represent the Chamber
of Commerce. I affirm that the statement of Mr. Pistorius is true. The Chamber of
Commerce requested me to attend to give further evidence, especially with regard to
railway questions. When this Industrial Commission was appointed, the^ representa-
tives of the Chamber of Commerce and Mercantile Association held special meetings
to consider the position and formulate a statement affirming that the causes of thft
pi-esent depression were effected as follows :^ct) The Netherlands Railway adnauuB-
tration. Such as the differential and excessive rates, and lack of capable administm-
tion. (6) The excessive cost of dynamite, (c) Excessive taxation, {d) The industrial
and trading monopolies, such as are being used for the development of industrial
enterprise, (e) As shown by the insecurity evidenced by the withdrawal of «^tal
by investors from the Transvaal, and the difficulty of arranging financial transacticm.
and the want of firm legal measures to suppress gambling, especially in the tarn of

sweeps. ^ ^ J,

1 will endeavour in my evidence to avoid going over the same ground travttm-

by previous witnesses. Before taking up the definite points referred to, I shall 9mL

the attention of Uie Ck)mmission to the industrial and economic^fact that South Afrisa

Mr W. Hosken's Evidenoe. 48i

is a mining country, and all other industries are dependent on the mining industry,
not excepting agriculture. In proof of this, I have a table which shows that in 1896
the imports through the Cape and Natal amounted in value to £23,372,000, and the vaiaeandnatur
exports totalled £17,878,000. Of the minerals, gold showed a value of £8,355,000; fi|"5^^rT
diamonds, £4,640,000. Agricultural products exported include grain, flowers, grass ^^^**. ^JJj;
(to the extent from the Uape of £20,000), spirits, wine, bark, oathay, feathers, wool, NatJin im
hides, skins, hair, and horns, totalling in all about £4,166,000. For other agricultural ^^JS^^t* ^*i
products the markets are found in this country through the mining industry. The SinlnJ indui
nmrkets are the mining towns, and the places through which the traffic for the mines ^*
passes. I don't wish to minimise the value and importance of the primary industry —
namely, agriculture — but in this country the mining industry is pre-eminently the
backbone and support of the whole country. The crops I have referred to are sold in
the mining towns, and at the poi'ts where the traffic for the mines passes through.
The economic question outlined by these figures has in the past not received sufficient
attention by even the people or the Governments in South Africa. I wish to put
forward as a practical proposition to the Commiasion : If an acre of ground is culti-
vated for minerals, it should produce say £10,000 during a certain period. Is it not an
eqxx&l advantage to the State and community to make the production through the
mineral kingdom, as it would be for the same return to be made through
the vegetable kingdom. The experience gained in other countries also assures us
that the successful working of the mining industry brings success for all other
industries with it, and especially success for agriculture. For examples, we can look
to California, and Australia, and New Zealand. These countries were, in the first
instance, exploited for minerals, and success in mineral work has enabled them to
become foremost in agriculture. Therefore, the true policy for South Africa, and
especially for the Transvaal, is to aid the mining industry in evei*v possible way. I will
now proceed to give definite evidence regarding the various points that the Chamber
of Commerce considered so important. In the first place, there is the Netherlands TheNetherUndi
Railway. In this connection the Chamber of Commerce wishes me to make some ^^•"'^y-
remarks on Mr. Middelberg's statement, laid before this Commission. Mr. Middelberg Mr.ifuideiber^i
commences by correctly stating the accusation made against the Netherlands Railway, •^*«»«°*-
that it is taking an undue share of the transport dues from the ports to Johannesburg.
He then proceeds to illustrate and defend his action in exacting this undue share by
the analogy of a tenant with a house having to pay certain rent to the two or more
joint-owners. Mr. Middelberg says it would oe a matter of indiflference to the tenant
as to how the rent was divided amongst the ownera We accept the illustration as
showing the position we are in as regards the South African railways. But Mr.
Middelberg overlooks a most important point. He assumes that a tenant is satisfied
with the rent. We are not satisfied. That entirely alters the proposition put
forward by Mr. Middelberg. In pursuing the analogy further : Say the house con-
sists of six rooms, all equally essential to the comfort and well-being of the tenant.
The rent is £4 ISs. 4d. per month — I take that sum as it represents the rough goods'
rate per ton from Durban to Johannesburg. The tenant learns that the joint pro- ^
prietors own the property in rooms, and uiat four rooms belong to one of the owners,
and two to the other, but that the owner of the two rooms claims half the rent for
his share. The tenant wants his rent reduced, and first calls on the owner of the two
Tooms to reduce his rent to the same standard as that of the owner of four rooms.
Having secured that reduction, the tenant will proceed to press both owners for a
farther reduction. That is the position in the Transvaal to-day. The owner of the
fiour rooms can be likened to Natal, which has 309 miles of railway on the line we
tuive under consideration, and the two rooms the Netherlands, who have 178 miles.

432 Mr. W« Ho$keit'8 EvkfentiC.

The total rate is £4 18a 4(L Natal gets £2 10s. and the Netherlands get £2 &3. 4d.
We, therefore, think that, taking Mr. Middelberg's own analogy, it is a most definite

Eroof of our case for a demand for a reduction. I then follow some special pleadings
y Mr. Middelberg that are even more fallacious than the house analogy, until we
come to the statement that people have distorted the share rates of the Netherlands
Railway, and made them appear as tariffs, and compared them with those in other
Netherlands couutries in the world. The amount shared by the Netherlands is not a share of the
in through through-ratc, but a definite tariff charged for that portion of |the line under the
"*•■ Netherlands administration. The Cape and Free State sections show in all their

tariff and railway debits separate entries for their portions of the line to Mid-Vaal
River. I hope I have made this clear to the Commission. Mr. Middelberg made a
strong point of this through-rate from the port to Johannesburg, and said that we are
only interested in the through-rate, and that we are not interested in the question of
how that rate was apportioned by the different owners, and pointed out that the
through-rate had been arranged for, with the help and assistance of the Netherlands
Railway, on a low basis. My endeavour will be to show that whatever benefits we

fet in the way of a low rate, are not due in any measure to the Netherlands Railway,
ut have come, in fact, in spite of it, and that the rates as quoted by the different
administrations are rates to the border, and the Netherlands Railway have levelled
the different rates up to the point that suits their idea of what they should be.

Chairman.

Mr. MiddeTberg's You are uow quotiug Something which has been fully discussed by Mr. Middelberji^
and the members of the Commission, and it has been ar^ed over and over again^^
The Commission does not want to go over the same ground again, and we cannot call
Mr. Middelberg to reply to vou. The cross-examination was of the same tenour &e
your statement, and if you follow Mr. Middelberg's examination, you will see that tbe
same questions which you are now touching upon were gone into. — The figures I wanted
to put in could not have been before you.

Mr. Smit

The Commission don't want you to come and plead your cause. We want evideoM
and not argument, especially eo in the absence of a former witness. — But statements
have been made and not controverted.

Chairman.

If you read the evidence of Mr. Middelberg, you will see it has been controverted
in cross-examination.

Mr. Smit

You do not contradict ; you simply argue and plead your case like an advooata—
I wanted to explain my position up to the point — or how can I otherwise make cktf
my standing in the matter ? Mr. Middelberg, for instance, has repudiated a tel^m
iiicreMe of rail- which was filed here by Mr. Goldmann, regarding a change in the price of oemcnt
SSent?* **" The telegram was sent to the Chamber of Commerce, and put in evidence by Ife
Goldmann, from the general manager of the Cape Railways, saying that in conseqaeiNB
of representations made by the Netherlands Railway, the rate on cement haa baei
raised. Mr. Middelberg referred to this previous evidence and repudiated it. No#i
on behalf of the Chamber of Commerce, I will, if you will permit me, and I am to give

J roper evidence, put in the letter, dated the 6th August, 1895. It is from iki
ohannesburg Chamber of Commerce to Mr. Middelberg, and quotes this same telegiM

Mr. W« Hosken's Evtdeiwe. 433

on the body of the letter, which charges the Netherlands Railway with having raised
•the rates ; and we ask for an e:n)Ianation as to whether the Netherlands Railway have
liaised the rates. I have, further a copy of the telegram from Mr. Elliott to Mr.
Middelberg, which, if I am to give evidence, I must read, saying that, " in consequence
•of the conversation we had in Pretoria last Monday, I have issued a notice that the rate
•on cement will be advanced one month hence." I have, further, a copy of a letter from
the general manager of railways, Capetown, to the East London Chamber of Commerce,
making the same statement, all about the same date. I think the only use of my

- evidence about railways would be to traverse some of the statements made by Mr.

- Middelberg, so I leave it to the Commission to say whether I shall go on.

ChairriMin.

I don't want to hear any further arguments about it. We have got complete *^dc nee m\o
• evidence about the high tariff charged by the railway, and against this we have got JJ^JdmLaWcT
the evidence of Mr. Imddelberg, and I find enough in all that evidence for the purpose
of my report. If you have got any special grievances against the railway, or any new
<- evidence, I shall be pleased to hear it

Mr. Srait

I want to add, if you can prove there is anything wrong or misleading in Mr. ^enSenS!*'*
^lliddelberg's statement, then the Commission will hear it — The committee of the
*^ Chamber of Commerce examined this statement of Mr. Middelberg's critically, with a
'"view to offering rebutting evidence.

Mr. de Beer.

We don't want criticisms Of course, we will hear with pleasure any facts. The
nnembers of the Commission, as well as the Chamber of Cfommerce can use their
-diBcretion in criticising Mr. Middelberg's statement — Of course if the statistical com-
JMirative reports that have been prepared with great care are not wanted, we must
•wmply leave that and go on.

We want you to say where you differ from Mr. Middelberg and produce the proof. —

^t is what I wish to do. I would point out the fallacy of that table produced

}>y Mr. Middelberg. Then there is another table which we say is entirely wrong — it

^ the tabulated statement of comparisons of tariffs. Mr. Middelberg endeavours to

show that the Netherlands local rates are below the Natal ratea Witn one exception i-ooai nitwaj

that is entirely wrong. Natal has a tariff for under 25 miles, which is above the Nether-

J^ttids rate ; but when we come to 50 miles the Natal rate works out as follows : — For

^be three classes 4'50d., as against the Netherlands 6d. ; 3'70d as against Netherlands

'^'SOd, and 3'lOd as against 3d. Practicallv the whole traffic in the Tr^msvaal is for more

'^ban 50 miles, therefore the only reasonaole comparison to make is for 50 miles and

'^warda Taking it for 100 miles for the three classes, the comparison is : Natal,

•4d, Netherlands, 6d ; Natal, 3-25d, Netherlands, 4-50d ; Natal, 2-75d ; Netherlands, 3d.

'^i the Railway Congress in Capetown two years ago, at which each of the Chambers

'^ Commerce in South Africa, from Capetown to Pretoria, and right away to

^olowayo, were represented, the representatives from Bloemf ontein raisedthis question Differential iaa-

*tj(f xailway rates, and in the opinion of the members present, it was agreed that it was ^^ ^^^

'>liii8B80(nable that the tonnage of traffic to Bloemf ontein should come in the mileage

^^::ate in comparison with the traffic for Johannesburg. Such a table, when put forward,

'^ l]«ble to mislead public opinion. Mr. Middelberg compares the rate to Mochudi for

"^iiistajioe, with the rate to Johannesburg. The comparison of traffic is five tons to

^■^Bochudi-for every 1,000 tons to Johannesburg. So it is impossible to make a oompari*

434 Mr. W« Hosken'8 Evidence.

'^^ISLuu!^ son on anything like equal conditions. Then follows a statement comparing the rates.
extendoD rau- charged on other lines, and it especially says that the rates inland on the extensioa
way ntM. through Bechuanaland are greater than they are in the Transvaal. The plainest reply-
to that is the notice given in the Cape Colony about three days ago, that food suppliea
will be carried at Jd per ton per mile. When we get in the Transvaal a rate c« Jd

*'tion**^f'^?h^ P®^ ^^ P?'^ °^^® ^® ^" °^*' complain. We say that the Netherlands management
Netherlands of the railways is most expensive and inefficient.

Chairman,

Are there no reasons why it should be more expensive than the Natal manage-
ment ? — On the contrary, we think it should be cheaper.

Have you tried to find out why it is more expensive ? — ^Yes. In the general
statement put in by the Chamber of Commerce it is put down to lack of capable
administration. We say the Netherlands Railway should oe run at a much less rate,
because it runs mainly on the table-land; it is in the midst of the coal country
and the traffic is concentrated, enabling the lines to be worked to their utmost
carrying capacity. To show how important that point is, we have a most useful object^
lesson in the Cape Colony. We find that the returns on the different systems are a^
follows :— Western, £6 17s 6d; Midland, £10 17s lid ; Eastern, £5 19a 2d ; Northerau^
£15 12a ; which shows that the traffic concentrates on the northern line, and the profit^
jump up.

As rerards the different statistics, cost per mile, and working expenses, I thuik
they should get it direct from the different administrations, which would be preferab7e
to getting it from third parties. — I should like to go into detail as to the eaminga
ProJJ of South The different railway administrations in South Africa make enormous profits, lle-
wayT" Cape administration show by their published accounts that they made a profit last
year of £1,356,000; the Natal Railway, £456,000; and, we assume, the Netherlands
made a profit of 1,330,000. The Netherlands Railway Company has been credited
with 6 per cent, on its capital, debentures, etc. : Natal has been credited with 4 per
cent, and the Cape 4 per cent., the amount over and above these charges is equal to ft
tax of 15s 6d per ton on the companies' crushings last year. But, of course, a great
portion of the charge is borne by the deep-level and development companies.

We have had all that information from the Chamber of Mines, the Association of
Mines, etc. I wish you to confine yourself, as representing the Chamber of Commerce,
to the interests of commerce and trade, and to show what can be done to assist com-
merce and trade. All the other points have been alreadv dealt with by the mine
managers and other people. — ^You see we are all so interestea in the mining questi(XL

I think the information the Commission have on the mining question is complete^

so we will thank you to confine yourself to what belongs to your department—the

Chamber of Commerce. It is the same point that I mentioned to Mr. Pistoriua— I

would like to point out that Mr. Pistorius specially assisted in ^tting up the figorei

^*i^*neibtt^ I have given to you. I would like to file a series of questions prepared by the

^^w!ce to Chamber of Commerce, with a view to Mr. Middelberg's examination. The Chunber

MrMiddeibersr of Commercc rcqucstcd that it mi^ht be represented directly on the Commission, and

that request not having^ been acceaed to, the only opportunity to examine Mr. Hiddel-

berg was to prepare this series of questions. We understand they were handed to Hr.-

Miodelberg by a member of the Commission, but no reply has ever been received. I

have been requested by the Chamber of Commerce to present these questions, and to

ask the Commission if they will be good enough to get a reply from Mr. Middelbeq^-

Mr. W. Hosken's Evidence. 435

The questions themselves were so framed with the intention of showing the especial
grievances under which the commercial people suffer.

Mr. 8mit

Tou ask the Commission to forward these to Mr. Middelberg ? — Yes.

Tou mean this Commission ought to make itself a special commission on behalf
of the Chamber of Commerce ? — We thought, seeing the important interests the
Chamber of Commerce represents, we hoped the Government would

You consider the Chamber of Commerce is really .a little Government of its own»
which wants to see this Commission put a special investigation against the N.Z.A.S.M.
on these grounds ? — Certainly not. The thing seems too absurd to reply to almost*
The Chamber of Commerce is there to look after the interests of the community. To
take that as a question to be considered seriously — that the Chamber of Commerce is
a Government m itself — approaches almost to the ridiculous.

But I say it is equally ridiculous to put in a lot of questions for the Commission
to put to someone else, whereas the Commission is sitting here, and knows how to
conduct the enquiry. You have heard that the Chamber of Commerce has had the
same chance as everybody else to expose their grievances, and point out faults, but
now the Chamber of Commerce comes, standing above the Chamber of Mines, above
the Mercantile Association, and charging the Commission to begin, specially on behalf
of the Chamber of Commerce, an investigation against the rauway company, against
which you have seen fit to adduce attorneys' arguments. — I think the member of the
Commission who has just spoken is entirely mistaking his position. In the first place»
the Chamber of Commerce does not arrogate to itself any position of superiority.
That series of questions, instead of being arranged by the Chamber of Commerce
itself, as Mr. Smit has stated, is the joint product of the Chamber of Commerce and
the Mercantile Association. They had no opportunity whatever of getting infor-
mation on these important points contained in the enquiries except through this
Commission, and they therefore approached the Commission with the hope that such
information would be elicited. For the purposes of this enquiry, I am willing to assert
these statements instead of putting them in the form of questions, but our desire was
to be perfectly fair, and not make assertions until we were sure of our position, and,
therefore, we asked the questions first before we made a protest against what we under-
stood would be the answer. Surely, I submit, that was a respectful way in which to
approach the Commission. It will be necessary for me, if I go on with my evidence,
to refer to these questions. I have overwhelming proof in regfiurd to some points
referred to in these questions. For instance, we ask why the ^therlands Railway
shelters itself behind owners' risk to endeavour to entirely contract itself out of loss,
when the loss is so flagrant that it loses whole truckloads of goods at a time. I have
evidence to show that truckload after truckload, not merely solitary instances, has
been absolutely lost, and the Netherlands Railway refuse to entertain any claim, **^^^ffjtjjjj.
sheltering themselves under their regulations, which have been approved by the uuidiBaUw»}
E!xecutive Council, and therefore, they say, are in force. They refuse to pay for the
goods which they have never delivered, and refuse to refund even the money they
received for the carriage of these goods.

Chairman.

Have any of these cases been taken into Cotui) ? — ^They have not been taken into
Court

It does not lie with the Commission to clear up this matter. — No, but this shows
the mismanagement of the Netherlands Railway, and how it tells on the industry.

436 Mr. W. Hoskeh's Evidenbe.

That 18 our point in the matter. Even the very fact of these cases not being brougfa

into Court is one proof of the mismanagement of the railway. Every firm reports t

the Chamber of Commerce after their loss, and each firm is afraid of taking tne onu;

Difflcuityofiejfai of responsibility of taking the case into Court against the railway company, becaus

the**" iSfthe? of *^he master position of wie Netherlands Railway, by which we are compelled t

lands Railway, bring the wholc of our goods through their administration. I think the Commissioi

will see what a difficult position any firm would be in that takes up a case to figh

under such conditions.

You have mentioned several instances of goods having been lost through th
fault of the railway, and that the company shielded itself behind the regulation, tha
they are not responsible for goods earned on their line. I have asked you whethe
you have already brought one case into Court where it has been decided that th
company in that manner allowed goods to get lost without compensation. — As far a
the Chamber of Commerce has been aware no case has been decided. At the las
meeting a firm in town appealed to us for assistance to go on with the case, and sub
mitted counsel's opinion showing that under the regulations, if they were upheld
^o* tt^N^th "* ^^^^^ ^^^ ^o claim against the railway, but, the opinion went on to say, they war
lands RaUwav vitni vir€8 and bcyoud the powers of the Executive to grant, as overriding thi
tiona?."*^^^"" common law of the country, and, therefore raised the very important point as b
whether the Executive Council had power to make regulations beyond the laws, an<
also raised the very constitutional question which has created such a difficulty recently
with the judges. I am glad to have the opportunity to make this explanation, U
show how difficult it is for any single firm to fight a claim through the Courts
The regulations, as published by the Netherlands Railway, and approved by th<
Executive Council, permit them to disclaim responsibility. I have been requested tc
state to the Commission definite cases of whole truckloads of goods of various kinds-
grain, bags, timber. &c. — where they have actually been lost, and the Netherlands replj
that they shield themselves under the " owner's risk " regulation, and refuse to enter-
tain the claim for the goods, or even refund the carriage they have collected on them.
Merchants and Havc you made any complaints about that to the Government Commissioner a
cimm2S>n?? Railways ? — During my absence in England I am advised that the Chamber of Coin
merce and Mercantile Association had an appointment with the Railway Commissione
to discuss this and other points in Pretoria, and deputations attended in Pretoria, bo
the Railway Comissioner did not meet them, and they thought it impossible to go oi
further in that direction.

Does a man usually address himself to the Chamber of Commerce ? — ^The Chamber
of Commerce exists to assist traders.

Then, if a merchant finds himself in difficulty, why does he not applv to the Rail-
way Commissioner ? — The Railway Commissioner has not put himself in touch with
the people in this town. The Railway Commissioner, for instance, has never attended a
'j- * meeting of the Chamber of Commerce, or in any way put himself in touch with the

people who provide the traffic, and, in this particular instance, eight representative
merchants went over to Pretoria by appointment, and, when they arrived there, the
Commissioner could not be found, and, therefore, the merchants of this town consider
it useless to appeal to the Commissioner.

That is not a reply to my question. I want to know whether it is imperative, if a
merchant or trader gets into difficulties with the railway company, to first addrea
himself to the Chamber of Commerce ? — No ; but two cases now pending have beea
submitted to the Chamber for advice. Beyond that, the Chamber could not assiat
them.

You have made another remark I don't agree with, when you say ttiat merchaotv

Mr. W. Hosken's Evidenoe. 487

would be afraid to bring their caaea before the Court, owin^ to the regulations passed ^|^°",'^°
and approved of by the Elxecutive, and because they would be on the same basis as the aglust t£'
case of the judges. Tou also said the railway was such a mighty faction, and had such BiShrayf'^*^
big influence, that it is very hard to bring a case into Court. Now, I deny this, and
in any case where I thought I was wronged by a railway official, or the company, I
would not fear their power to go into Court. Beyond that I have got nothing to say.

Mr. Smit explained that the appointment referred to by Mr. Hosken was not kept ^^the^^Siaiw
on account of the merchants making the arrangement to meet in his office without con- commiHion. '
suiting him or giving him details of complaints which had been made in a general
way. He, moreover, wired to them that Government business would take him to
Johannesburg that day. With regard to the regulations being contrary to the laws of
the country ; if that were so, it was contrary to the protection of the rights of the
Bepublic, and it would be the Commission's duty to alter that. Could Mr. Hosken
state any of these regulations which were against the law of the land.

Witness said he had only given counsel s opinion, which he would be very glad to
put in. In this opinion the different regulations were enumerated.

Mr. Alhu.

You were formerly agent of the Glasgow Dynamite Trust ?
Witness said he had one or two other points regarding railway matters he would
like to submit, and he proceeded to detail cases of goods being lost, and of the company
repudiating any liability whatever.

Won't the regulations allow you to sue them ? — No.

You were formerly agent of W obel's Glasgow Dynamite Company ? — Then I am
not to so on with the railway case. I would like to state, on behalf of the Chamber,
that this letter I have put in, shows definitely the difficulties we are under, under these
* owner's risk " laws. This refers to a consignment of 50 boxes of candles, six dozen
shovels, and 8cwt of nails consigned to the Nigel Company. The candles and shovels **ownen ri»k'
came under railway risk, and the nails under owners' nsk. The railway delivered the SuidiBiaiway!
candles and shovels, and lost the nails, and absolutely declined any claim, because they
Were under owners' risk. The .merchants, and the town particulfiurly, protest that
nnder the " owners' risk " laws goods are constantly missing, and the railway refuse to
consider any claima This is a typical instance. The only one item in the whole con-
signment under owners' risk is lost. They did not deliver a pound of it, and declined
^ consider any claim. That was a thing the merchants, as a body, said was so hard
^ them. There are two resolutions I was instructed to submit to the Commission, specui railway
^hich were passed at the meeting on 28th May. The first is to this effect: "That rtSfft."*" '*^
ttiis Chamber protests against the short notice given from time to time of the rail-
^^y company s special rates for food supplies coming from over the sea." Bearing in
^ind the important question of food supplies for this large community, the Commis-
**oii will see the importance of the matter. The ordinary rate from Durban is 68. 9d.
V^^ lOOlbs. on meahes. In view of the urgent necessity for supplies from oversea, a
^P^dal rate was provided by the Netherlands Railway of 4s. 4d. — a difference of
^ lOd. a bag less in the cost of bringing the grain here. Therefore, it is evident
what "" - - -

^ered us, as traders in Johannesburg, to take goods up to the last day in March if
^ Netherlands Railway would carry them forward. The Netherlands Railway
^ould not give a reply, and it was only on the 3rd April that we had a notice — not
published even then by the Netherlands Railway, but by the Natal Qovemment Rail-

486 Mr. 1V. Hoskeh's Evidence.

way — saying that the rate would be continued during April. It was only a notice for
the month. At the end of April we, as dealers, wanted again to know our poBition.
We again could not get a reply from the Netherlands Railway, and the Natal Kailway
published a notice on the 29th April, that the rate would be continued during May.
The same thing happened in May, only not (juite so flagrant a case. The Cape Rail-
way published a notice on the 17th May, saying the rate would be continued during
June, and we think such an important question as this shows the utter want of
management, when the food supplies of a great community such as this are taken
into account. The next resolution passed by the Chamber of Commerce is also on the
food supply. It states that the special rate for the food supplies should include flour or
other products of wheat. Perhaps I might explain that the regulations only provide for
grain, including wheat, but do not provide for the products of grain. Thei-efore, we
have this extraordinary position, that wheat is paying 4s. 4d. per lOOlbs., but flour,
which is the food of the working men of the country, is paying 6s. 3d., and we think
it is an unreasonable position. With regard to the questions of the Chamber of
<tae8tion8 o^ jio- Commcrcc, at the express instructions of that Chamber, I am requested to file them
ohiSni^r "o? with the Commission. I would like the Commission to instruct me what reply I
MrMuSefbefS havc to take to the Chamber of Commerce, as a representative, regarding these
particular enquiries,

Mr. de Beer.

Mr. Hay informed me that Mr. Middelberg has those questiona — Yes, is he going
to reply to them ?

We have not heard from him yet. — Might I say to the Chamber that they may-
expect a reply from the Commission ?

Oluiirman,

No, the Commission cannot give any special reply. They will make a general

The Johwines- report. — On the Chamber of Commerce questions, it is absolutely necessary to poio^i

o?'^^rcc out that for three years past we petitioned the Raad for expropriation of the railway'

exSroprilltioI?! ^^ havc bccu cousistcut in our policy from the first. The merchants are more vm

touch with the Railway Department than the mines are, and better able, therefore, tc

judge of the management and general working. Surely that is best indicated by the

fact of these petitions, which we have year after year sent in to the Raad.

I think this is just the question which the Chamber of Commerce cannot judge
about, and it is not their business to tell the Government to expropriate the railway.
The Government was wise, without the Chamber of Commerce, to get the clause m
the concession altered. It first of all read that the Government could only expropriate
after ten years, and if it was not then expropriated thev would have to wait another
ten years. The Government has taken care that the clause is put so that they caa
expropriate at any time. The Government will also be wise to see when it is to the
interest of the country, and when it agi*ees with the views of the Government to
expropriate. — The Chamber of Commerce recognised that improvement, and directly
the Government made that improvement as to expropriation, they immediately
approached the Government, in a constitutional manner, through petition from the
Raad, and asked them to exercise their right.

I repeat, it does not lie in your way. It is a matter entirely within the juriadie-
tion of the Government.

Mr. Alhiu

Nobel's oiM. Tou have been agent or director of Nobel's Glasgow Dynamite factory ?— I wtf
fSiS^^ agent for sale.

Mr. W. Hosken's Bvidenca 439

Have you had any experience with the sale of dynamite elsewhere? — I was
director of the Transvaal Company.

This Transvaal Company ? — Yea Mr. Hotkm ud

If I remember rightly, some years ago you were a great opponent of Lippert's. DynSto^
In the face of that it seems somewhat strange to me that you became a director of the
Transvaal Dynamite Company. I mean it would appear strange to anybody. — I don't
think so.

Well, you have been opposing Lippert as a monopolist. He is the monopolist
to-day, or rather Nobel's, for it is all the same, and you became a director. For
'what ? For opposing him at first ? Was it a particular f eelinff of gratitude they
showed to you ? — I may explain the position in a sentence. At the time we were in
active opposition — I am not speaking personally, but as a representative of Nobel's — Nobei'g apd Mr.
the position regarding the monopoly as it then existed was that it was assailable — dJ?Smite eon-
the original contract of Lippert's was assailable. It was contrary to the London ^'•ct
Convention ; it was contrary to the Treaty of Commerce with Germany. Nobel's, as
heing manufacturers in both England and Germany, represented the case to both
^ese Governments, and both these Governments protested against the position.

But what does that matter ? — The new regulation comes within the provisions of Nobei't and the
the Transvaal Convention and their treaties of commerce, and we were absolutely mu*e*«S<»-
<Jebarred from further opposition. "****•

Who was ? — Nobel's. The position is entirely changed. Previously the regula-
tion was wrong and could be attacked. Now, it could not be attacked, and that
P^terially altered the position. The only chance, therefore, as Nobel's agent, to get
^^to this market was to make arrangements with the man who held the key of the
<loor, and Mr. Lippert held the key of the door.

I suspected at the time that Nobel's was playing up to all three parties — to
Lippert, the mining industry, and the Government. Whichever party was winning,
N^obel's was sure to slip in somehow. — I say you are entirely wrong. We were in
^^<^nafide opposition, and as long as there was a chance to get into this market — the
*>igge8t in the world for explosives — we were prepared to fight the case. But when
the Transvaal Government shut the door and gave the key to Mr. Lippert, our only
chance to ^et in was to make an arrangement with Mr. Lippert. I think that replies
to you f ainy.

Yes, it clears up the reason why you have been a director of the Transvaal Com-
pany.-—Certainly, we had to make an arrangement with Mr. Lippert. You have
PKxiuced evidence to show that Nobel's provided the £220,000 to found the factory.

But Mr. Phillip would not admit it. — Well, if Mr. Phillip would not admit it, you
Produced evidence yourself showing it. Nobel's selected men they had on the spot to
^^resent them on the Board. I say the position is perfectly straightforward and
upright

40b. percMe.

Oh, yes. I don't say anything against that. Did you offer to supply the mines Nobei's offer to
)^th dynamite, at a price very much lower than the present ? — You will find my name fjUjiS^bowiat
^ On tnat contract we offered to all the mines, by which we offered to supply dynamite
^ 40b. per case, and retained the option to supply it at less than 408. if it suited u&

That was No. 1 dynamite, 75 per cent ? — Yes ; delivered here ex magazine.

How about duty ? — 40s. ex magazine duty.

You are absolutely certain you offered to do that ? — Ye& Yon were not a party
^ the contract You at that time took the opposite side, unfortunately for us.

I took the opposite side when Lippert was a monopolist ; and the manipulation
^^ to ffet rid of lippert, and someboay else would come in. I was afraid of that
^^^inebody elaa Th«b was Nober& — ^The offer was fully reported at the tima We said

440 Mr. W. Hosken^s Evfdenc*.

we would supply the dynamite at 40s. for 14 years if they liked. The Gbvemment-
imposed a duty of 378. 8d. per case on No. 1 dynamite.
Price of Nobefi Blasting gelatine I suppose you offered to supply in proportion ? — ^To the 40a we

utMttoff geia- ad(j 35 per (jent. for blasting gelatine, plus the duty, which amounts to about £2 per case.

And you think Nobel's would be willing to supply it for less ? — I don't know.* I
am simply agent for sale.

But, as agent for sale, had you the power to do so ? — We offered to supply it at
40s. for 14 years, and we retained the option, if it suited us, to go below 40s. I have
no experience in manufacturing. I am simply agent for sale.

Have you got any experience as to the sale of dynamite in any other countries,
such as British India, California, etc. ? — I only know as a mercantile man would who
takes an interest in his business what similar articles are sold for in other parts of the
world.
Price of No. 1 Do you kuow what dynamite Na 1, 75 per cent, sells at in England ? — ^The
SSSndf ^" djmamite business, it mioht be necessary to explain, is different to almost any other.
The dyiMunite The immense power of the explosive puts it under special regulations in every civilised
^ country, and, thei'efore, there is not tne same free trade in the manufacture and sale of

dynamite as there would be, say, in candles or soap. Local conditions as to competi-
tion greatly influence the price. You cannot take a cargo of dynamite into a port, for
instance, and sell it as you could any other article.
Ooraish prices We are aware of these facts. What is the price dynamite has been sold for during
for dynMnite. ^j^g jgjg^ |j^q years in CoiTiwall, or any other part of England ? — ^In Cornwall to-day,
the price, so far as I am informed, is £65 to £68 a ton. That is from 32s. 6d. to 346.
per case.

That is delivered on the mines in small quantities as required ? The min
generally have no magazine there ? — That is so.

While agent for Nobers Glasgow Trust, did you ascertain at what dynamite sol
in Germany ? — I never inquired as to Germany.
Transvaal price -^ ^ business man you would think, if djmamite sold in small Quantities i

of dynandte. Comwall at 32s. 6d., a place like the Transvaal should have special facilities for i

There is hardly a consumer in the world like the Transvaal. — Certainly. This & j
certainly the biggest market for explosives in the world.
Pri^of detona- And that is why we pay the biggest price, I suppose. Do you know at wh^it

price detonators are sold at all ? — Now you come to that question, I think it is no6
tair and reasonable I should be asked to give the information. I am an ex-director of
the local explosives company. Tou have had the managing director before voa He
is acquaint^ with the whole of those figures ; and you should have got it nrom him.
He always said he was not acquainted with them. I don't want to askyom
anything which might put you in an unplea.sant position. Detonators are a thing (£
which anyone can find out the price, ana I don't think you will' reveal any secrets hf^
telling us. We used to pav 3s. a box, and we now pay 4s. I would like to know tb^
Profits on sale of pricc at Homc ? — It is evident the 3s. leaves a profit,
detonators. jy^ yQ^ know anything about the building of the dynamite factory? — ^I doiii>

know the ultimate cost. I retu*ed from the company about eighteen months sinoa

But any factory capable of coping with the demand here ? — ^It is a very diflfcalt^
question to estimate.

Had you, formerly, experience in the djmamite business, or only since you have
been connected with Nobel's ? Had you any experience at Home ? — ^No, I have bflfitt
in South Africa most of my life.

Sale of detona- J^* -"^y»

torain^johan. j^ .^ within your knowledge, as a business man, that detonators are for. sale in

iVIr. W. Hosken's Evidence. 44i

Johannesburg at any place except at the agent's dynamite factory ?— As ffiur as I know
they are only procurable at the one place.

At one time permits were granted for the importation of detonators ; do you know Permits for im.
whether these permits have expired ? — I think they are all exhausted. SetonatorB.^'

The representative of the factory stated these permits were still running? —
The representative of the company ought to be better acquainted with the facts than
I am. 1 tell you what I think.

When you were a director of this company what was the method of procedure for importaUon of
the importation of explosives into this country ? — ^I think it is hardly a fair question th?^*^tini^
to put to me ; you have had a representative of the company here, and I have retired factory.
from the company. It would be an invidious position for me to take up.

Tou say the first concession was contraiy to the Convention, and to the treaty The two dyua.
with Germany, but you have given the opinion now, that the present concession \a in "onVi^*"the
accordance with the Convention. In what way do you explain that ? — ^You may be ^'«n^ent*on.
sure we did not abandon the position until we found it was hopeless, and that is
evidenced by the fact that such a large sum was paid to ^et into the market.

Nobel's people came into this country to assist us m getting the first concession Nobers and the
cancelled because it was contrary to the Convention, and then they assisted to get the Se flSt'JknJ!
new^ contract passed. — They did no such thing. mite concee-

Well, it is a curious thing that since the new contract was passed it is not contrary
to the Convention. — Mr. Hay mistakes the position. It is evident that Nobel's offer to
contract for 14 years at 40s. assisted the mines to get the original contract cancelled.

Then the question is, if somebody else came in and offered dynamite at 40s., it
would be reasonable to expect that this concession should be cancelled. — I think you
ynU find that this concession is on stronger grounds than the other. I have already
pointed out the original contract was assailaole.

And Nobel's have put the rope around our neck tighter than it was before ? — Nobers and the
Certainly not The Transvaal Government closed this market absolutely to every- ^"e^cwJSS".
body except Mr. Lippert, and the only way to get in was to make an arrangement ■'oo-
'with Mr. Lippert.

The dynamite was sold at 80s., and now the same people supply us with dynamite
at 85a — That is a subject for criticism.

Nobel's have offered to supply all the stuff which is brought into the country, and
aeU it at 40s. in bond ; surely to-day there must be a handsome profit on selling the Profltoonptesent
aa^me article at 80s. under the same conditions. — A previous witness before the Com- S^.^ *^'"**
ixiifision pointed out that the concession has a limited period to run, and they must
pi*ovide an amortisation fund to wipe off the cost of the works, which runs to a very
I^*ge sum indeed.

That all comes if they start making. I am talking about the imported stuff*
J^bich is imported under the same conditions as it was before. — They have to provide dynamite ro^-ai-
*oir the commission to Mr. Lippert, and the royalty to Lewis and Marks, and other ^^^
^bar^ea It is only reasonable for them to take the ordinary business precautions

Did they buy over the old concession, or did they give this as a bonus on the new Mr. uppert's
^neession ? — They gave nothing to Mr. Lippert, you may be sure about thai The cwm™*on.
Government had a contract with Mr. Lippert, and they could only get in under Mr.
I-ippert's contract

Nobel's people put up £220,000 in cash out of £450,000, which left £230,000 as
^pital, for which mterest is to be paid before the Qovemment get any share of the
p)x>fit at all. Can you ^ve us any explanation why that £230,0C^ should exist ? — You ^« non-paid-up
Overlook the fact that Nobel's had nothing to do with getting this monopoly, and when aAWoJli ex-
^h» company was formed these shares were given to the old concessionaires. You have ^2y!** ^"

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Chairman's Closing Remark^. 443

these recommendations tx) the Qovenunent that the consumer will get the profit T»de combina
thereof. I have been answered that competition will bring that about, out I do not chanu an!d
l)elieve that, because I have now found out that instead of competition, a combination «>™p«***^oo-
-exists, and consequently what the Government will lose in import duties, and what
the railway will lose by giving a reduction in rates will go into the pockets of the
•combination, and not to tifie benefit of the consumer. — I think It is only fair to the trade
that I should be given a chance of replying to the statement. In the first instance
in the Chamber or Commerce there are over one hundred wholesale firms represented,
and the competition amongst them is of the keenest nature, and I will say positively,
418 an active member and vice-president of the Chamber of Commerce, that tnere is no
combination whatever for any one article or any combination of articlea The total
number of merchants' licences issued during the previous year was 1,400, and it must be
evident that it is impossible to make a combination, and, further, if the Chairman
would be good enougn to enquire from some of the members of the Commission he
would find that not only are we in competition with ourselves here, but the keenest
•competition also exists between ourselves and the merchants of Port Elizabeth, East
London, Durban, and Delagoa Bay. It is absolutely impossible to have a combination,
-snd the Chairman has been misinformed, and, therefore, as a merchant myself engaged in
business, I will assure him, and furnish him with a list of prices which can easilv be
•checked, showing that the main items now supplied to the mines are being sold for
actual cost price or below it

Mr. Albu.

I fikdmit that competition is very keen, not only here, but among Home merchants
trading for this mfiurket — Competition for every article is very keen.

Tnen what do you think you could get dynamite for if you had free trade ? — I ^^^^J^*^
think I must be like the other dynamite witness, and say I don't know. dynamite.

Cluiirman.
I thank Mr. Hosken for attending.

The Commission then concluded its public sitting, the Chairman making a closing
:speech, as follows : —

Gentlemen, I have heard fi-om the secretary, with pleasure, that there are no
more witnessea I think everybody will be pleased, with me, that our labours, so far
as the hearing of witnesses goes, are finished, and I think we have obtained sufiicient
evidence to enable us to work out satisfactorily the duty we have before us. suffldenoy o
Perhaps it has been thought that our work has been diflScult and troublesome ; and, e^<*«»<*-
perhaps, it is true, at times, monotonous, but, as for myself, I can say I have carried
on this work with pleasure and ambition, because I feel, and I think the other mem-
bers of the Commission feel with me, that it is a work for the good of the Republic in
^neraL It is my duty to thank the members for their co-operaGon so far in public,
.and for the support given me as Chairman of this Commission, and I hope when we
further have the several testimonies before us to draft our report and recommendations, R«port of con
that we shall co-operate together harmoniously, and keep in view the interests of the «ni»ioD.
mining industry, and especially those of the Republic in general I think everybody
feels with me that we have a difficult task resting upon our shoulders, if we are to
Tealise what is expected of ua I know our work will probably be submitted to
^tieism, but that will not prevent us acting in accordance with our honest con-
vieticms in making our report and recommendations on the work for which the
ijtoremment has placed us here. It is also my duty to thank Mr. Bosch, the inter-
yteier, with whose work I may say I am satisfied. I think it is also my duty to take

444 Chairman's Closing Remarks.

this opportunity to mention the reporters of the different newspapers, who» from
first day to the last, have attended our meetings, for the quiet way in which t
have done their work, and for the faithful application they have shown. I think
public in general, both inside and outside this country, owes a great debt of gratit
for the reports given by them, and I may say their chiefs ought to give thei
holiday and a bonua

Mr» Jovhert,

Ohftirmftn of I Only waut to thank our Chairman for the able manner in which he

oommiiBion conducted our meetings, and I hope the result of this Commission will be a weigh

the scale in whidi many questions will be solved. For myself, as Minister of Mi

I have obtained very useful information during the session. I myself have pen

the newspapers, and, as far as I have seen, the reporters have done their w

^MtdedrabiJ! impartially and well. I hope that as the result of the Commission our report wili
unanimous, and that it will do good for the mining industry.

lEPORT OF THE COMMISSION.

H<yn<ywr the State President cmd the Honowrahle Mevibers of the Executive L«tt«r of tiM
C(mrica of the 8(mth African Republic :— SSSff?^

In submitting the joint report of the Commission, the undersigned desire to draw ecutiTe oooo-
bention to the following : *'*'•

As advisory members, the Qovemment appointed Messrs. Edmond Bbochon,
Brakhan, and J. M. Pierce, but your Commission deemed it advisable, with the
notion of the Government, to add Messrs. James Hat 'and George Ai^u to the
ove list

All these gentlemen kindly consented to assist us in our onerous duties, and un-
servedly placed their services at our command. Tour Commission would be failing
I courtesy were they to neglect this opportunity of expressing their keen apprecia-
cm of the services rendered by the Advisory Committee.

As men of ability and experience, their advice on matters local and technical

aterially assisted your Commission to ^rasp the situation, and it is with great

tisfaction that we commend the zeal and mterest displayed by them throughout the

oceedings. — We have the honour to be, honourea sirs, your obedient servants,

pied) ScHALK W. Burqer (Chairman), Christiaan J. Joubert, J. S. Smit, Thos.

^00, J. F. DE Beer, A. Schmitz-Dumont.

Eia Honour the State President and the Honovi/rahle Members of the Executive i^*P^^ ^^
Covmcil, South African Republic. Oommiirioii.

Honourable Sirs, — In accordance with your instructions contained in your
*8 addressed to the members of this Commission, dated April 5, 1897, your Com-
•yn have the honour to report as follows : —

)n April 13th last your Commission initiated proceedings at Pretoria, and, after

^ been engaged there for a few days in arranging preUminary matters in con-

1 with the inquiry, your Commission decided to proceed to Johannesburg to

their investigationa On April 20th the inquiry commenced at Johannesburg^,

ur Commission deemed it to the interest of all concerned that the proceedings

be public, and to give the same the widest publicity.

marily, your Commission set tJiemselves the task of instituting minute and tim pnMnt de-
investigation with regard to the depression in matters connected with thp p"^«°-
industry, and ascertained that during the year 1896 there were one hundred
ity-three mines within the State, whereof seventy-nine produced gold to an
vnd value of £8,603,831.

remaining one hundred and four mines yielded no gold, most of this number
a state of development and equipment, while on^ twenty-five companies
lividends — to an amount of £1,718,781.

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Report of the Commission. 447

its fiscal laws and systems of administration as to meet the requirements of its
principal industry.

A close scrutiny of the combined report of the Chamber of Mines and Mercantile commeroe de
Association proves that the commercial interests and those of the mining industry are ^^^ind^
80 interwoven that it is hardly possible to separate the one from the other, and all ^•
economical measures with regard to taxation, freight, etc., api)ly to both.

Your Commission think that, with the. natural facilities for agiiculture, that Agricaiture.
industry ought to be greatly encouraged. The consequence would be that the
development of this industry would materially reduce the cost of living, which would
have an immediate and beneficial efiect on the price of labour.

It is a fact much to be resetted that tlie advance of agriculture is not pro-
portionate with that of the miumg industry and the general growth and pro^ss of
the countiy, and it is therefore very necessary to establish an Agricultural Depart- An •gricaitu»]
ment, and for the Government to take active measures to promote the interests of the *p*"™*" •
industry by assisting where such is feasible, and to have it conducted on the most
improved modem principles as practised in ot^er parts of the world.

In submitting to the Government a scheme for reducing the burdens of the mining
industry, it is naturally to be expected that the latter will also practise economy in
every department. Judring from the recent events and by the persistent manner in
which the mines have rrauced, and are further trving to reduce, the working costs,
your Commission have no doubt that the mines, after so far having taken the initia-
tive, will act responsively to any economic measure the Government may tiiink
proper to introduce.

Your Commission entirely disapprove of concessions, through which the Indus- conoonioiis.
trial prosperity of the country is hampered. Such might have been expedient in the
past, out the country has now arrived at a state of development that will only admit
of free competition according to republican principles. Tnis applies more especially
to the sold industry, that has to face its own economical problems without being
further burdened with concessions that are irksome and injurious to the industry, ana
will always remain a source of irritation and dissatisfaction.

Throughout the inquiry, it was clear to your Commission that the question of Labour.
labour was a most vital one for the mines, and, seeing that the cost of labour
amounted to from 50 to 60> per cent of the production cost, your Commission are of
opinion that the labour question ought to take precedence in their report. Not only
in this Republic, but in most countries all over the world, the labour question is a most
difficult one to deal witL It still remains a subject for discussion, notwithstanding
that the most renowned and eminent politicians and statesmen have tried to solve the
question* A universal combination of circumstances in this country renders the
solution still more difficult, and from the evidence to be laid before you it will be
apparent how complicated the question ia

To begin with white labour, your Commission would strongly recommend that white uiboar.
all measures should be taken by which the cost of living at the mines may be reduced ^!l?5.U^ ^'
as much as possible. Judging superficially, and taking into consideration the wages vmte '
paid by the mining companies m other parts of the world, and the evidence on the
sabject submitted to your Commission, it would appear as if wages paid here are too
high, but, taking all the circumstances into consideration, the contrary is apparent. It
must be taken as a fact that no skilled labourer can or will work for a salary or
wage lees than will enable him to support himself and his family.

According to evidence, a miner earns from £18 to £30 sterhng per month, accord-
ing to ability, and your Commission are of opinion that these wages are not excessive,
taking into consideration the high cost of livmg at the mine& £i fact, they are only

^48 Report of the Cothitiissioit. -

sufficient to satisfy daily wants, and, conseqaently, it cannot be expected tiiat white
labourers will establish their permanent abode in this Republic unless conditiona are
made by which their position will be ameliorated.

^iSd *towto5 * Your Commission wish to recommend that in future all companies shall keep
fees. their accounts in such a manner that it will clearly appear what proportion of waives,

salaries and remuneration is paid to white labourers, and what to oirectors, secretaries,
clerks, engineers, etc, because at present all these are brought into one account, and it
would consequently appear as if the average wage paid to miners is higher than really
is the case.

Minera'qiutrtera. Your Commissiou further wish to recommend that the companies should build
dwelling-houses for white labourers, which is already done by some of the companies,
and should let those at a rental equivalent to a reasonable interest on capital expended.
This would mean a considerable improvement in the condition of hving of those
miners.

The iiMter and Your C!ommission further recommend that the law with regard to master and
rvants Act g^j.^^^^^ g^ existing at present, be modified so that all contracts entered into in Europe
and elsewhere, between employers and employees, would be legalised here by simple
registration, and would not, as hitherto, reqiiire a confirmation of the contract W
parties before a Landdrost or Mining Commissioner before becoming of effect here. It
would be necessary to provide that such a contract must be reasonable as regards the

^Sity.*"^ "* labourer. Further, this law ought to define the responsibility of the master to a
servant in case of accident, and, further, that neither master nor servant can make a
contract contrary to any provision of such law.

Import daty on Your Commissiou are of opinion that as long as the cost of living is not consider-
foodttuna. ajjiy reduced it would be almost impossible to reduce the wages of white labourers, and
they would strongly recommend that, as far as possible, necessaries of life should be.
imported free of import duty and conveyed to the mines as cheaply as possible.

Encouragement Your Coipniission further consider that it will be desirable to encourage other
of indostriee. indugfcries besides the mining industry, which will also tend to procure employment for
white labourers.
Native labonr. Native labour is one of the most difficult questions before your Commission. It

will be necessary to discuss three points, viz : —

From where tnust the industry draw its supply ?
What supply can be obtained ?
And at what wages ?

In reply to the first point, it appears to your Commission, that the chief supply
must come from the Elast Coast (Portuguese territory), and it is desirable to recommend
to the Government to enter into correspondence with the Portuguese authorities, in
order to facilitate the supply as much as possible. Further, a great many natives can
be got from within the boundaries of the Republic if sufficient inducement be offered,
and your Commission propose that the inducement will be best offered by paying
premiums to kaffir chiefs for the supply of labourers, and by the reduction of the fare
Reduction of for kaffirs per railway to one-third of that now charged, the difference to be recovered
JSrtofnatitw, from them on the return journey. It must be borne in mind that the present requiw-
ment of the Witwatersrand mines is 70,000 black labourers, while within the next three
years this number will be increased to at least 100,000, on account of the development
of the deep-level minea

While mentioning the subject of correspondence with the Portuguese government
your Commission are of opinion that correspondence with all South African States
would be desirable, in order once and for all to place the question of black labour on a
sound basi& Should the Government be successful in coming to an understanding wiA

]

Report of the Commlssioni 449

# .

the different CJolonies and States on this point, the question of reduction of wages will'
he a natural consequence.

As regards the supply of natives from within the boundaries of this Republic, your Govwnment oo-
Ciommission recommena that the Native Ciommissioners should receive extra payment if^^f nJ
in cases where they are obliged to undertake journeys to interview kaffir chiefis to ^^^ '^^tuf
obtain labourers from them ; that such kafBrs be conducted to the mines under su{)er- i55ui»?"^**°
vision, and that it would be desirable to erect along the roads at distances of 18 miles
apart, except where there is a railway, compounds, where the kaffirs can sleep and
obtain food. Your Ciommission recommend that the latter measure should be entirely
under Government control

Your Commission cannot recommend any measure which would be equivalent to
forced labour, neither can they recommend the imposition of a higher tax upon the
Icaffirs.

Much has been said about the desirability of establishing locations for kaffirs close Locatiom. :
to the Rand, but your Commission cannot at all recommend this course. Experience
has taught that the establishment of locations does not inmrove the kaffirs in any way,
but only tends to their deterioration. As 80on«as the kamr with his family lives in a
location, his highest aim in life is to see his wife and children work while he himself
looks on.

Your Commission has thought it desirable to consider the liquor traffic also in their The uquor tnfflo
Report, because they are of opinion that it directly affects the mining industry. It must
be remembered that the liquor traffic, together with the import duties and licences in
connection with the same, contributes to the revenue of the State.

It has been proved to your Commission that the Liquor Law, No. 17, 1896, is not ''SiJ^J^^y^
•carried out properly^ and that the mining industry has real grievances in connection iaw.** **^'
therewith, owing to the illicit sale of strong drink to the natives at the mines, and thev
wish especiallv and strongly to insist that the stipulations of Article 16 of the law shall
l)e strictly enforced. The evidence given on this point proves that a miserable state of
•^^rs exists, and a much stronger application of the law is required.

Your Commission recommend :

(a) That all licences for boarding houses for wldte people at the mines shall sucnreiUoiM for
in future be only issued by the Commission for liquor licences and licensing boards, tion^f 'Se'ul

(b) More police, and a better system of supervision at the mines. ^^^

(c) That, where any unlicensed person is convicted of selling strong drink to
natives, at the mines or elsewhere, the only punishment to be inflicted shall be
imprisonment

Your Commission are in favour of the strict carrying out of this law, but have
found that it is in some respects too drastic.

For instance, Article 17 of the law stipulates that four licences will be granted
^ a population of 500 persons, and, for every additional 400, onlv one more licence.
'(Under this Article is meant 500 male persons over sixteen years of age). There would
^ po objection against such a stipulation, as such is more or less the system in other
^vilified countries, but such a stipulation ought to have been initiated when the towns
and villages close to the mines were originally established.

It appears from statistics submitted that at present there are in Johannesburg uqaor ucenoet
tte following licensed liquor dealers : — (a) wholesale dealers, 49 ; (h) bottle stores, 66 ; ^Jjj/**^
"i^) canteens (bars), 305 ; (d) roadside inns, 5 ; (e) beer halls, 23 ; total 43& triot.

Letter ** c " includes 112 hotel licencea Supposing that Article 17 were to be
^%iinctly applied, and assuming that Johannesburg and mines in the neighbourhood

450 Report of the Commission.

' ' — ^^— ^ — — -i— — ^^i^^— N

have a male population over sixteen years of age o£ 35,500, the Licensing Board cant
only issue 88 licences ; and 350 licences will have to be refused.

^onof lifl^^r From a financial point of view this would entail very serious consequences for the^
ucencei dS- State, bccause the liquor licences, and the large amount paid for import duties of liquor,
■^'P^*^* which form a large proportion of the revenue of the State, might then be consideraUy
diminished. But leaving this out of the question, and assuming that the Qovemment •
would accept this loss, trade would be seriously affected by the closing of 350 places*
of business ; and large numbers of people who are interested in the trade, ana who*
have invested their entire capital in the liquor business, under the law then existing;
would be entirely ruined.

Beduction of li- It is Certainly desirable that the number of licences shall be reduced, but this .
quor cenBe8.!» qJ^q^j J jj^^ l^ douc in such a peremptory manner : fi^radually, and as opportunity ofien^.
these reductions can be effected. Article 17 of said law stipulates that licences will be
granted according to the population of any ward.

Suburbs such as Doomfontein, Hillbrow, Hospital Hill, etc., are only used for*
residential purposes, and up to the present the inhabitants have been able to success-
fully oppose the opening of canteens, there, by protesting and other means. The-
inhabitants of these suburbs generally have their places of business in the city, aiuL
remain there during the day — hence the many bars in C!ommissioner Street, whicli
street must be considered as the centre of the town, from a business, as well as from a.
geographical point of view. It must also be remembered that, when the bars at thd
mines are closed, numbers of people living there will make use of the bars in town.

wj^«i^eUvior Notwithstanding the Second Volksraad resolution. Article 122, D.D. 14, 597, and

cilkiiioenscfl. First Volksraad resolution. Article 112 D.D. 17, 597, your CJommission consider that

wholesale licences for the sale of liauor, as well as licences for bottle stores, can be

considered as usual trade licences, although under the control of the Licensing Board.

Transfer of li- Generally, whenever a licensed liquor dealer is convicted for breaking the law^
quorUoenMfl. j^^ transfers his licence to somebody else, who continues the illicit sale of liquor. It*
is, consequently, desirable that in future a licence for the sale of liquor shall be^
granted to a particular house, and not to any individual. Permits for the keeping:
open of bars after nine p.m. ought to be issued only by the Licensing Board, because -
this is one of the duties of that body, and does not fall under the jurisdiction of any
judicial official.

K^r^ftting jJq liceucc ought to bc granted for kaffir eating-houses at the mines, because the
necessity for them does not exist, and they only afford the opportunity to certain
persons to continue the iniquitous sale of liquor to natives at the minea

Your Commission disapprove of the payment of a portion of the fines to the in-
former, policeman or detective, because this not only puts a premium on crime, but
the informer, influenced by greed, puts the accused in a position which, without trap*
ping, he would not have occupied. It is not the intention of your CommissiQa to
deal with the Liquor Law in its entirety, and they have consequently only referred
to certain points which, in their opinion, require modification in the interests of the
trade and the mining industry.

Your Ciommission further recommend that all excise officials shall be undw the
control of the Licensing Boards of the different districts, and that the Licensing BdiidB-
shall have special detectives and inspectors under their control.

TruMitdaefl. The transit duties are unfair, and ought to be abolished. Yearly, an amount ot

£600,000 is paid by this Bepublic to the neighbouring States (Orange Free State es*
cepted). It may be argued from the other side that heavv expenses have been w/A
to construct docks and warehouses, but against this can be urged that the consignoii'
and consignees are charged heavy dock fees, which, if carefully calculated, aiuj^

Report of the Conimtsisloti. 45i

repay the expenses. The authority of your Ciommission for the figures quoted is Mr.
Wiener, member of the Cape Parliament and chairman of the United Chambers of
Commerce of South Africa, and your Commission are of opinion that statistics from
such a souix^e can be taken to be reliable. Your Commission recommend that negotia-
tions shall be entered into with the interested colonies to have those transit duties
abolished, but before doing so wish to recommend that the Government of this
Republic shall abolish the transit duties on goods to the North, as at present levied.

With reference to the importation of foodstuffs, your Commission can only re-
commend that, if possible,. foodstuffs ought to be entirely free from taxation, as at import duty on
the present moment it is impossible to supply the population of the Republic from '^'*'"*"^
the products of local agriculture, and consequently importation is absolutely
necessary.

Before entering on the subject of explosives, we wish to put on record our dis-
appointment with the evidence tendered on behalf of the South African Explosives south ^ ^can
Cx)., Limited. We expected, and we think not unreasonably, that they would be able compimy.^*'
to give reliable information for our guidance respecting the cost of importation, as
wefi as of local manufacture, of the principal explosives used for mining purposes; but,
though persistently questioned on these points, few facts were eliciteo, and we regret
to say they entirely failed to satisfy us in this important respect.

The importance of a cheap supply of all necessaries reqmred for mining purposes,
in order to ensure success, is perhaps too obvious to n^d repeating, but we may
mention that the one item most frequently referred to by witnesses in this connection
was the cost of the explosives.

It has, we consiaer, been clearly proved that the price paid by the mines for oost of expUM>
explosives of all kinds is unreasonably nigh, having due regard to original cost and ^^^
expenses of delivery in the South African Republic, and in our opinion a considerable
reauction should be made.

In making recommendations with this object in view, it must be stated, at the
outset, that the main difficulty in dealing with the question arises from the existence
of the contract, by means of which the monopolists are able to maintain the high
price, in spite of the fact that the manufactured article is mostly obtained by them m
Europe at a very much lower cost. Consequently, the advantages which the Govern-
ment intended to confer upon the country by establishing a new industry here, have
not been realised, whilst the monopoly has proved a senous burden on the mining
industry.

That the principal explosives used here (blasting gelatine, and, to a small extent,
dynamite) can be purchased in Europe, and delivered here at a price far below the
present cost to the mines, has been proved to us by the evidence of many witnesses
competent to speak on the subject, and when we bear in mind that the excess charge
of 40s. to 4f5a per case does not benefit the State, but serves to enrich individuals lor
the most part resident in Europe, the injustice of such a tax on the staple industry
becomes more apparent, and demands immediate removal.

It has been proved that the South African Republic is one of the largest, if not the
laif^est, consumer of explosives in the world, and, according to the rule of commerce in
siidh cases, it is reasonable to suppose that the most advantageous terms would be
secured for so large a consumer. Tnis, no doubt, would be the case were it not for
tlie monopoly now in the hands of the South African Explosives Company, whereby
jjiey and their friends make enormous profits at the expense of the mining industry. Proflts on pre-
?Thieee profits have been estimated by the Volksraad Dynamite Commission at no less d^LmSt? ^^
: 'ftian £580,000 for the years 1897 and 1898, being £2 per case on 290,000 cases, the "^i^,JSte
[' ifaiomber which it is estimated would have to be impoHed to meet the demands for oom^Hion.

452 Report of the CommissioiU;

those ^ears. It is thus clear that the hope of establishing a factory capable of
sapplymg the requirements of the mines, within a reasonable tim^, from the products
of the country, is far from, being realised.

From the evidence of witnesses other than the Explosives Company, we are
bound to believe that dynamite No. 1, containing 75 per cent of nitro-glycerine, can
^ No!™^y- ^. de^vered free on board at Hamburg at 23s, 6A per case of 50 lbs., the costs of
namite. bringing it to Johannesburg being about 14s. additipnal. The managing director of
the company, however, has since stated that Nobel's invoice it to them at 29& 6d. free
on board in Hamburg, but the difference is not essential to the point we have to deal
with here. . ,

This explosive, whether costing 23s. 6d. or 29a 6d. in Hamburg, is supplied to the
mines at 85s. per case, showing a profit of 47s. 6d. in one case, and 41& 6d. in the
other, of which this Oovermnent receives 5s. per case. That this is a reasonable estimate
is supported by the report of the Volksraad Dynamite Commission, who state that the
company makes a profit qf £2 per ca^ on imported dynamite, and further by the
evidence of a former agen^t of Nobel's Dynamite Trust, whose statemei^t was to the
Nobel's offer, effcct that he made an offer on behalf . of Nobel's to deliver dynamite ex magazine on the
Rand at 40s. per case, of 50 lbs., excluding duty,, and this at a time when it had to be
brought a considerable distance by ox-wagona

In the case of blasting gelatine, which is now more largely used than Na 1

Proflto of South dynamite, the margin of profit made by the company at the expense of the mines is

pioJwMCJofon f^r greater. The evidence led in favour of the company is that the cost is 43a 6d. per

iSne'^ srei-case free on board in Hamburg, the freight, etc., to Johannesburg being about 14s. per

case. Therefore, by the company's own showing, the difference in price in Europe

between blasting gelatine and dynamite No. 1 is 14s. per case (43s. 6d. and 29a ^\

whilst the charges for bringing the articles into the South African Republic are the

same. Seeing that the company charges the mines for blasting gelatine 22a 6d over

and above the price of dynamite No. 1 (namely, 107s. 6d. as against 85a), it is evident

that the profit falling to the company is still larger. Other evidence laid before your

Commission gives the difference in cost of blasting gelatine and dynamite at only 7a

to 10a per casa

The mining industry has thus to bear a burden which does not enrich the State
or bring any benefit in return, and this fact must always prove a source of irritation
and annoyance to those who, while willing to contribute to just taxation for the
general good, cannot acquiesce in an impost of the nature complained of. The
importance of this to the mining industry may be gathered from the fact that
Aven^epercent- explosives havc been shown to average 9 per cent, of the total working cost, but for

^lodv?^ to the development work the percentage is a higher one.
viSt 'te"8ird^. . ^^ Ju^® *» 1897, your Commission inspected the factory at Modderfontein, and it
namite factory must be admitted that the construction of the works and general equipment are in
many respects admirable, and it appeared to us greatly to be regretted that so much
money should have been invested in an undertaking for the manufacture of any
article whereof the ingredients have to be imported at a great cost, four tons of raw
material being required to produce one ton of the manufactured article.

Dynamite in- It ho^i been provcd to our satisfaction that none of the raw material used is

^JJ^^JIjJ^^ ♦ found in this country, or only in such small quantities as to make it practically
valueless for the purpose required ; and the coal consumed, although obtained here, is
40 to 50 per cent dearer than that delivered at factories in Europe, We understand
experiments have been made with the object of manufacturing sulphuric acid £ton
materials produced here, but these efforts to use the products of the country are still
in the experimental stage. Labour of the kind required is three or four times moca I

Report of the Commission. 453

:pen8ive than, for instance, labour in Germany, while the excessive cost of transport
mpels the use of materials unnecessarily dear. There is also no market here for the
r-products, which in Europe have considerable commercial value, thus further
creasing the cost of the manufactured articlea All these drawbacks, which make

almost impossible to establish a bona fide industry, fall on the mines, and render
eir task, especially that of the low-grade mines, extremely difficult and dis*
uraging. The desirability of establishing industries of all kinds within the Re-
iblic cannot for a moment be doubted ; but when it is proposed to establish an
tificial industry, whose only chance of success lies in the extent to which it may be
lowed to unduly profit from, instead of benefiting a natural and more important
terprise, the economic fallacy of the proposition becomes sufficiently clear to need
tie further demonstration. Another point that has been brought to the notice of
»ur Commission is the prejudicial effect exercised by this monopoly in practically
eluding from the country all new inventions in connection with explosives, and, in
ew of the numerous dynamite accidents that have taken place from time to time, it

to be regretted that it is not possible to make satisfactory trials of other and less
ngei-ous explosives for the working of mines. These questions have received the
rmil consideration of your Commission, who are forced to the conclusion that the
ctory has not attained the object for which it was established, and that there is no
eusonable prospect of its doing so. Further, that there are good grounds for
lieving that the contractors have failed to comply with the conditions of their
ntract, which require them to establish, complete, and bring into operation, on or
fore April 24, 1896, one or more factories for the manufacture of dynamite and
her explosives, of such nature and quality, and of such quantity, as the requirements
d demands within the South African Republic shall necessitate.

For the aforesaid reasons, and in view of the opinion expressed by the Volksraad canceiution ot
imamite Commission, that the legal position of the Government against the contract- JJj dynamite
s is undoubtedly strong, your Commission desire to recommend that the case lie
EM^ed in the hands of the legal advisers of the State, with a view to ascertaining
bether the contract can be cancelled.

Meanwhile, your Commission recommend that the Gbvemment avail itself forth- FreetnuiciMcx.
ith of its right, under Article 15 of the Regulations, namely : — . plosives.

The Government will reserve for itself the right, when the interests of the
State render it necessary, to take awajr the a-gency of trading in gunpowder,
dynamite, cartridges, and other explosive stuns m>m the above-mentioned
persons, etc., and at once take into its own hands the importation of dynamite
and other explosives for the benefit of the mining industry, subject to a duty of
not more than 20s. per case or such other less sum as may be determined on from
time to time.

This protective duty, while considerably increasing the revenue of the State,
juld at the same time afford ample protection to any industry of this description in
e Republic. In the event of cancellation being advised to he possible, free trade in
plosives to be at once established, subject to a dutjr of 20a per case, or such other
is duty as may be determined upon from time to time, and manufacturing of other
plosives in the Republic to be allowed, and also to be protected by the same impoi-t
ity.

Your Commission are of opinion that effective free trade will be in no wise
)pardised by the existence of any " ring " or combination for the sale of explosives in
irope.

Your Commission further wish to recotnmend the free importatibn of detonators.

454 Report of the Commission.

8ute'8 ihare of Your Commission desire furtlier to observe that it is not clear to them, judging
^Sm^^' from the published accounts of the South African Explosives Company for 1895 and
Mi ves Company jggg^ ^^j^^ ^hc Govemmeut receives the proportion of surplus profit secured to it under
the contract, namely, 20 per cent, and would strongly recommend, in accordance with
Article 6 of the contract, an immediate investigation of the company's accounts by
qualified accountants, in conjunction with the financial adviser of the Commission, in
order to find out what amount is still due to the Government under this head, and
further to cause inquiry to be made about the quantity of cases of blasting material,
gelatine and dynamite imported during 1896-97.
Railway late^. Your Commissiou have followed, with great attention and interest, the evidence and

statistics submitted under the head of railway rates. From those it appears that not only
are the tariffs charged by the N.21 AS.M. such that, in the event of their being reduced the
industry would be considerably benefited, while such a reduction would not only be
fair, but necessitate that the neighbouring States and Colonies would have to reduoe
their tariffs considerably. It does not lie within the scope of the labours of this
Commission to enter into the application of the tariffs at present existing and
charged by the N.Z.A.S.M., because this would require a technical knowlec&e of
railway matters which your Commission had neither the power nor opportumty to
gain.
Reduction of Your Commissiou havc come to the conclusion that, taking into consideration the
raiiH-ay rates, ^yidence Submitted to them, and taking the gross revenue of traffic of goods at about
£2,000,000 (as in 1896), it would be desirab^ to recommend so to regulate the tariff
for the carriage of goods that the gross revenue for goods traffic for 1896, would have
been reduced by £500,000, equivalent to an average reduction of 25 per cent

Further, your Commission deem it desirable that the Government shall makesaeh
an arrangement as will secure to them in the future a voice in the fixing of the tariflb
of the N.Z.AS.M., and express their confidence that, as soon as prosperous times shall
warrant such a course, a lurther reduction in tariffs shall be effected.

Your Commission wish to recommend that the reduction shall be chiefly applied
to the carriage of coal, timber, mining machinery, and foodstuffs, according to a scale
to be agreed upon between the Government and the N.21A.S.M.

Your Commission are of opinion that in this manner the industry will be met in
a very fair way.

Your Commission wish to express their opinion that it is absolutely necessaiy
that the reduction in all tariffs shall be brought about as speedily as possible, while
they express the hope that, where the co-operation of the neighbouring States and
Colonies is required, negotiations will be initiated and carried out so speedily that the
reduction to oe so initiated shall come into force not later than the 1st of January
next.
Expropriation of Several witnesses and some of the members of the Commission have urged the
railway. expropriation of the N.Z.A.S.M. by the Government Your Commission, however, for
several reasons known to them, and after the same have been communicated to those
members of the Commission who wished to urge expropriation of the N.Z.A.S.1L, do
not at the present moment desire to urge expropriation, provided by other meaoi
terms can be secured from the company, so as to obtain the reduction at preaedt
urgently required, on the basis as above set forth.

Your Commission have been informed that the company have promised (o tte
Government to adopt the dividend of the three years — 1895, 1896, and 1897 — as the
basis for the expropriation price, and your Commission can agree to such a propoeil'
The expropriation price being fixed, the company will have all the more reason to tff
operate towards the lowering of the tariffs.

Report of the Commission. 455

Further, it appea«r8 from the evidence of the managing director of the N.Z.iL.S.M.
ftt, in consideration of the redaction of tariffs, he wished to have secured to the
Enpanv a certain period of existence. Your Commission cannot recommend this
arse, because they do not deem the same to be in the interests of the State, and it
>uld be contrary to the wishes of the public

Your Ciommission further wish to recommend that the Government shall take Reduction of
»8ures to effect an alteration as speedily as possible in the railway tariflb of the ^"^ ^^^
ijjhbouring States and Colonies, so as to place them on a reasonable basis. From African lines.
e evidence and statistics submitted to your Commission, it appears that the nei^-
urin^ States and Colonies have made very large profits out oi their railway traffic,
d it IS only fair to expect that they will understand the desirability of a consider -
le reduction.

Before leaving the subject of the reduction of tariffs, your Commission want to Railway nte« on
mark that the teriff for coal traffic ought to command the largest reduction. Your ^^^
onmission have further found that the mining industry have real complaints about
e few facilities given by the company in delivery of coal and goods in general, and Deiiveiyofffoods
nr Commission are of opinion that every measure ought to oe taken in order to SLdBBiS^y.
militate such delivery.

Your Commission recommend that a line of railway shall be constructed to the Eiandsfontein-
iith of the main reef, between Boksburg and Bjrugersdorp, specially intended for the 1!;,°?***^****'*
trying of coal, and that to the different companies leave should be granted to con-
vict sidings from that line and other lines to their mines, with permission to emplov
^am power, after approval of the plans by the Government Commissioner of Kail-
lys. This will do away with the objection at present existing against the payment
: the detention of coal trucks, and the expenses connected therewith.

Your Commission further wish to recommend that it will be desirable to relieve ohaivw f6r de-
riffs for coal traffic of every and any petty charges which are at present charged for Siting, tJ*
ick-hire, shunting, detention, etc.

Your Commission further recommend that the company shall, as soon as possible, special niiway
3vide a quantity of proper coal trucks, by which coal can be carried in bulk, and by ^»**°^
lich the unnecessary expense of bags will be obviated.

Finally, your Commission are of opinion that the greatest f aicilities ought to be Airricuitore.
luted for the transport of all agricultural produce at lowest prices, and, if required, by
yht trains to the principal markets of the Kepublia It cannot be questioned that
erything ought to be done to encourage agriculture and stock-breeding in the
^public There is no reason why milk ana other perishable articles cannot be loaded
night at any station of the N.Z.A.S.M., and delivered in time for the markets. As
argument against this it might be said that, at the present moment, a very small
antity of such produce would be offered for transport ; but your Commission consider
fit, if the opportunity were afforded, probably an important industry in these articles
mid be created.

Your Commission wish to refer to what has already been said about the carrying Transport of
rail of kaffir labourers, whereby it is proposed to charge for kaffir or coloured »»»«v«».
x>ttr travelling to the mines one-third of the usual fare, and to recover the balance
ym them on the return Journey.

Further, your Commission deem it of the greatest importance that measures should
taken by which all South African railway companies shall carry passengers and
ods throughout South Africa under uniform conaitiona

According to the evidence submitted to your Commission, gold thefts are on the qom thefta.
3«bBe, and, although theVolksraad have given the matter their favourable oonsidera-
n, and have, at the instance of the mining industry, so amended the Qold Law as to

456 Report of the Commission.

provide for punishment for the sale, and the bein^ in possession of, raw gold, still, it
nas been stated to your Commission in evidence that the gold thefts amount to about
10 per cent of the output, equivalent to an amount of £750,000 per annum. It follows
that the administration of the law must be faulty, because there are only a very few
instances where the crime has been detected and punished. If these figures are not
exaggerated, and your Commission have no reason to suppose so, then this matter
deserves the serious consideration of the Government

The suppression of this crime can be considered as a real saving to the industry,
and this amount of three-quarters of a million would, especially in times of depressicm,
exercise a large influence on the yield and financial pasition of the mines. Hie
Remedies for industry ask that the penal clauses regarding this matter shall be eliminated from the
gold thefts. Qq1(J j^^, and that a separate law be passed, more or less on the basis of the LD.R
Law of Kimberley, Cape Colony ; and that measures shall be taken by which the
injured parties shall be enabled to exercise control, and have supervision over aor
department to be established for the detection and suppression of thefts of raw gola
Tour Commission are of opinion that the Government could grant this request
without injuring their dimity, on the basis hereafter mentioned ; on the contrary, it
would remove the blame from the present administration, viz., that these thefts can be
practically carried on with impunity.

pmsIaw. As regEirds the Pass Law, your Commission have obtained very important evidence

from Mr. Kock, the Chief of the Johannesburg Pass Department, ana they desire to
refer you to his report, from which it appears that certain alterations are desirable,
although what is really required with regard to this law is that it should be applied
more stringently.

Adminiftntion The Honourable Government will find later on in this report, a recommendation

be^ven'^to ^^ which it is Suggested that the can*ying out of the Pass Iaw be placed under the

^'tof Nfttf ***** ^^^^^^ ^f * \ocb\ Board on the Ooldfields, and your Commission desire further to re-

' commend that the whole of the administration of this law be placed under the control

of the Superintendent of Natives, instead of the Minister of Mines, as is at present the

case.

It is far from the Commission to, in any way, blame the Mining Department for
the inferior carrying out of the law until now. But should Government take into
consideration the suggestions made by your Commission with regard to the supply of
native labour, mentioned under that head in this report, the object of your Commiasicm
in making this suggestion will be obvious, and it is also impossible for two depart-
ments to be engagea with the carrying out of one law.
LocftiBoftiti. The evidence given before your Commission has suggested the advisability of

appointing a Board or Commission in Johannesburg, to^e composed of memben
appointed by the Government, representatives of the mining industry, and commerettl
firms of the Witwatersrand, in order that the Government members may benefit If
the experience of men who are daily occupied in the careful consideration of tu
matters appertaining to mining. Your Commission are of opinion that it is advKBahk
that efiect should be given to this recommendation. The objects of this Commiaeta
would be the supervision of the administration of the following laws : Liquor Iav»
as far as the proclaimed goldfields are concerned ; the Pass Law, and law r^;ard*
ing gold thefts ; and, further, they would have an advisory vote as regards thesnpplf
of natives to the mines, concerning which your Commission have already advisedf d»j
Government as to what steps should be taken. The districts under the 8upervi8iaDof|
this Board or Commission ought to include Heidelberg, the Witwatersrand, Elerkr|
dorp and other goldfields, as may appear essential.

Report of the Commission. 457

Your Commission 8U^;e8t that this Board or Commission shall consist of five sjyww detective
mtoibers to be appointed oy the Government, and of four members to be deputed by ^^^
the following bodies, subject to the approval of the Government, namely, one delegate
firom the Chamber of Mines, one irom the Association of Mines, or, m the event of
these two bodies amalgamating, two delegates from the joint Chamber, one delegate
from the Mine Managers' Association, and one delegate from the merchants of
Johannesburg.

Your Commission would recommend that a special detective force be placed under
ttiis department, the duties of the members of which shall be the tracing of con-
traveners of the above-mentioned laws, and then the prosecution of them in the usual
manner. It shall also be within the province of this Board or Commission to report
to the Government anv neglect on the paxt of the officials who are charged with the
carrying out of the aoove-mentioned laws. The Board or Commission shall also
report to the Executive Council upon the 20od or bad working of the above laws, and
recommend alterations if necessary. It shall naturally be clearly stipulated that the
power to be given to the Board or Commission shall in no way encroach upon the
working of the Mining Department or of the Licensing Boards, but they shall work in
unison with them.

We would also advance as another reason in favour of the establishment of such
a Board that the Government will be able to depute to them the reception of deputa-
tions regarding^ mining complaints, for them to hear and investigate such complaints
and . submit tiiem to the Government, together with their opinions upon them.
Thereby much time would be saved.

Your Commission would suggest to the Government that this Board be brought
into existence as soon as possible, and that they should draw up regulations and
submit them to the Government for ratification.

Under the heading of the duty on cement, your Commission merely desire to Duty on cement.
fltate that the import duty of 12s. 6d. per cask appears to be altogether too high.
Apart from this, the heavy transport rate on such a heavy article as cement causes
in itself the price to be so high that it ought to be exceedingly easy for any local
industry to compete.

Your Commission recommends, therefore, that the special duty on cement should
hb abolished as soon as possible.

It has been clearly proven to your Commission that the concession granted for Brick -maidiig
the supply of machine-made bricks is generally injurious to the inhabitants of the ^°«^®°-
Bepublic For this reason, your Commission recommend that steps be taken, as soon
%B possible, to relieve the inhabitante of the Republic from this undesirable monopoly.

Evidence has been given before your Commission that the sweepstakes and other sweepstakes.
Sornis of betting held in the betting circles in the Republic have a very injurious effect
Upon trade, and are especially injurious te the youth of this Republic.

Your Commission are aware that this question is already before the Raad for con-
tfidoration, and can, therefore, only give expression to the hope that that body will
{isoceed to alter the law in such a manner that the holding of all sweepstakes and
IHher forms of betting will be prohibited.

Before concluding their report, your Commission must express the greatest satisfac- witnesses
bum at the manner in which witnesses have appeared at the request of your Commission. <^**"^«^
would be invidious te mention some names when there are so many who, at a great
Ice of time, have devoted themselves to a careful compilation of facts and figures,
which no more interesting or exhaustive statements of the local mining industry
kve ever been laid before the public

At the request of your Commission, representetives from Barberton and Ellerks-

D 2

458 Report of the Commission.

dorp came to Pretoria to give evidence, and the public spirit displaved by these gentle*
men in coming all that distance to represent the interests ox their respec^ve com*
munities deserves the greatest praise.

It most be mentioned here that the interests of the aforesaid mining oommmiitiefl
are identical with those of the Witwatersrand goldfields, and any benefits resulting
from the enquiry must necessarily extend to those fielda
BecommeiKU> Your Commissiou respectfully suggest that, for the purposes of general reference^
Stion 'oF"the *^^ ^ ^ taken up in the official archives, the report with all the evidence led,
report and evi. statistics and further addenda, be printed and publisned in book form. It will abo
serve a useful purpose in illustrating to foreign mvestors the conditions under which
the mines exist and are worked, the richness of the reefs and the regularity of the ore
deposit&
BesuitBof adop. Credit will be restored, as it will be obvious to all who take an interest in the
No. o. r^rt ^^^,^ ^j^^ ^^^ ^^ comilames, moBtly floated in Europe bv tmscrapuloos promoten,
do not come within the pale of le^timate enterprise connectea with the mining industry.
The establishment of a local Minmg Board has been strongly urged by witneases.
From an industrial and financial point of view this country must be considered as still
in its infancy, and without loss oi dignity and prestige the Government may accede
to the above request Experience in fliese matters can only be attained i^Fter the lapse
of long years, and by coming into contact with experts from other countries the State
will reap the benefit of the knowledge obtained in their countries, where these problems
have for decades exercised the mincb of their leading citizena In conclusion, your
Commission fervently hope that they have truly and faithfully interpreted the oojeet
of the inquiry, and that their suggestions and recommendations, if acted upon, will
confer a lasting benefit on " Lana en Yolk."

The above Report was signed by aU ike Official and Admsory
Members qf the Commission.

APPENDIX.

I. Letter of the Witwatersrand Chamber of Mines to the Coboiission.
11. Memorials of the Witwatersrand Chamber of Mines to the Volksraad,

III. Report of the Witwatersrand Chamber of Mines' Coboiittee on Railways,

Annexurea: (1) Report of the Netherlands South African Railway Company
for 1895 ; (2) General Regulations of the Netherlands South African
Railway Company ; and (3) Natal-Netherlands Agreement.

IV. Mr. Dougall's Letter on the Netherlands Railway.
V. Netherlands Railway Concession.

VI. Report of the Volksraad Dynamite Commission.

VII. Balance Sheet of the South African Explosives Company.

VIII. The State Dynamite Monopoly. Contract . between the Government and

the Agent. • •

IX. Budget Statements of the South African Repubuc. Receipts and
Expenditure from 1882 to 1896 inclusivr

X. List of Electors of the South African Republic.

XL Statistics of the White Population of the South African Republic.

XII. Statistics and Census of the Native Population of the South African

Republic.

XIIL The Pass Law.

XIV. Schedule of Native Wages, Witwatersrand.

XV. The Liquor Law.

XVI. The Gold Law. (S. H. Barbel's edition.)

XVII. Extracts from Netherlands Railway Report, 1896.

Letter of Witwatersrand Chamber of Mines

TO THE Commission.

Witwatersrand Chamber of Mines

Johannesburg, 20th May, 1897.

To THE Honourable the Chairman and Members of the Industrial Com-
mission OF Enquiry.

Gentlemen, — We have the honour to forward you herewith answers to the
various questions put in writing to the Chairman of the Chamber, and in response to
the request of the Government to all persons interested, to render assistance to your
Commission by placing before it all possible information connected with the burdens
and grievances of the mining industry, and to your confirmation of that request, beg to
submit the main points oi the more important questions which have formed the
subject matter of the Chamber of Mines' memorials to the Volksraad, and of its
memorials and communications to the Government.

The subjects referred to are : Dynamite, Native Labour and Pass Law, Liquor
Law, Railway Administration and Rates, Gold Thefts, Bewaarplaatsen Mining Rights,
-Cement Duty ; which will be taken in the order named.

DYNAMITE.*

As far back as 1890 the Chamber suggested that a commission should be appointed
to enquire into various questions connected with the dynamite monopoly, and that it
was of the first importance that a certain number of those connected with the actual
working of the mines (the number proposed was three) should be nominated by the
Government as additional ofiicial members. A commission was eventually appointed,
but the mines were not accorded the representation on it which had been asked for,
though at a later stage Dr. Simon was appointed to represent the Chamber.

In 1891, in its memorial to the Volksraad, the Chamber pointed out (1) that
numerous complaints of the dynamite being of inferior quality had been received ; (2)
that the concessionaires were not manufacturing dynamite, but importing it under
another name ; and, (3) that the price charged was excessive ; and asked that leave
might be given to import direct from Europe, subject to the payment of a reasonable
royalty either to the Government or the concessionaires. The import duty at this
time was 7s. per case. The Volksraad resolved : '' To answer the memorialistB that
nothing can be done with reference to their prayers ; and further, to instruct the

* Throughout in speaking of dynamite, dynamite No. 1, containing 75 per cent, of nitro-glyoerine is
intended ; this quality having been taken as the basis of the contract between the Government and the
<^vemment agent.

Letter of Chamber of Mines, 46i

(Government to see that the concession is strictly carried out, and that as quickly as
possible the dynamite must be manufactured from materials found in the South
African Republic."

The year following, the Chamber's memorial to the Volksraad stated that the
mines were being charged by the concessionaires 40s. per case for dynamite, in excess
of the price at which it could be imported ; that while the mining industry was heavily
burdened, the State was losing the revenue which ordinary impoiiiers would have to
pay ; that the terms of the concession were being ignored bv the concessionaires, and
that the concession ought to be cancelled ; but that if the Volksraad were unwilling to
proceed to cancellation at once, then that the mining companies should be allowed to
import the same explosive and put it into cartridges m the same manner as that
adopted by the concessionaires. At about this time, mrough information supplied by
the Chamber, and at its request, the Volksraad Dynamite Commission ordered the
seizure of a quantity of stuflr which the concessionaires declared to be gtihr impregn^,
but which, by the public firing tests, and the chemical tests of Drs. Schlesinger and
Simon, was proved to be dynamite pure and simple. The Chamber thereupon at once
asked that permits might be issuea for the importation of dynamite. In August, on
consideration of the revision of the tariff, various proposals were made for increasing
the import duty on dynamite and other explosives. Strenuous endeavours were put
forth by the Uhamber to protect the industry a^inst such additional taxation, but
nevertheless the duty was raised to 3d. per lb. and 7^ per cent, ad valorem^ equal to
about I7s. 6d. per case. In the same month the Government cancelled the concession,
and in due course the concessionaires claimed in terms of their concession that the
matter should be submitted to arbitration. The Chamber then addressed a letter to
the State President and members of the Executive Council, thanking them for their
action in the matter. Great difficulty was, however, experienced in getting permits
issued for the importation of explosives, and, when issued, they were not for a sufficient
quantity.

In 1893, the Chamber's memorial to the Volksraad referred to the increase of
revenue, which had resulted from the cancellation of the concession, and, after giving
figures showing that dynamite could be laid down in Johannesburg, inclusive of 17a
per case duty, at about 66s. 7d. per case, prayed that provision might be made for. the
issue of permits, on application, to all duly licensed persons wishing to import. The
doling out of permits had already, and was still, causing great inconvenience to the
mines, and frequent complaints were sent to the Chamber, which duly made repre-
sentations to Government on the subject

But the trouble in connection with the question of issue of permits was over-
shadowed early in August, by infbrmation which reached the Uhamber that the
Government contemplated establishing a State Dynamite Monopoly. Immediate steps
were taken to ascertain whether the information was accurate, and on the 8th of
Aujgust, at a special meeting of the Chamber, a resolution was passed, of wiiich the
following is an extract : —

" The Chamber views the present unsatisf actoiy method of regulating the importa-
tion of dynamite with alarm, as it leaves the mining industry constantly confronted
with the danger of an absolute dearth of explosives, and deprives it of the advantage
of trade competition ; and would urge upon the Government the desirability of expe-
diting the arbitration on the points suomitted for decision, and of establishing free
importation of dynamite under permita The Chamber also desires to protest most
emphatically against the substitution of a State monopoly for the cancelled concession,
regarding such a system as no less pernicious than the one it would replace."

462 Letter of Chamber of Mines.

A deputation, consistmg of the Acting President of the Chamber of Mines, Messrs.
G. H. Goch, J. B. Taylor, E. H. Dunning, S. B. Joel, C. R Nind, and F. Lowrey,
handed a copy of the resolution to the President, who, however, refused to accept it, on
the plea of other more urgent business, and asked for a simple outline of the inausti^s
grievance, saying that his policy must not be questioned, and that he must be left to
kx)k after his mines as he thought best.

At the ordinary monthly meeting of the Chamber, held on the 10th August, after
the Chairman had reported on behalf of the deputation, the following resolutions were
unanimously passed : —

" The Chamber hereby records its dissatisfaction at the extremely inconsiderate
and hostile attitude of the Government towards the mining industry, as shown by its
proposals to establish a dynamite monopoly, ostensibly as a State monopoly, but in
reality as a monopoly in favour of an agent, to whom the industry will be handed over
for spoliation."

''That the foregoing resolution be translated into Dutch and forwarded to all
members of the Government, also to all members of the Volksraad, praying these to
vote solidly against the iniquitous proposals of the Government re State Monopoly,
and, if possible, to pass a resolution establishing free trade in dynamite."

Copies of the resolutions were dispatched to the Government and to the Volks-
raad members with, in the case of the latter, the request set forth in the second
resolution. A resolution was also passed, thanking the Minister of Mines for hi&
reception of the Chamber's deputation and for the promise of support which he had
given them.

Within a few days the Government submitted its dvnamite proposals to the
Volksraad. In spite of the manner in which its deputation had been received, the
Chamber determined not to remit its endeavours to work amicably with the Govern-
ment, and at the same time protect the mining industry as fully as possible. Taking
the view that the object of the Government was : 1. To provide a way out of the dis-
pute between the concessionaires and itself, and avoid the possibility of damages being
awarded against the State ; and 2. To ensure the erection of a real factory and the
boTidJide maxiuia^ituTe of explosives within the State, the Chamber, while remaining of
opinion that the best solution of the dynamite question was the granting of free trade
in explosives, was nevertheless willing to assist the Government in seeking to attain
its wishea The following proposals were accordingly submitted by Mr. Jeppe, M.F.V.,
to the Government and to the Volksraad Commission, which had been appointed to deal
with the Government scheme : —

1. The dispute between the Government and the concessionaires to be pushed to
a settlement by means of arbitration.

2. The mining industry, if the Chamber is consulted by the Government as to the
naming of an arbitrator by the Government, will be willing to pay the damages, if any
are awarded, by means of a rate to be levied on each case of dynamite ; the Chamto
reserving to itself the right to avoid the payment of additional dues by making one .
payment for the full amount.

3. That in order to ensure the establishment of a factory in the country, the
Government should offer an annual bonus to anyone establishing such a factory. The
Chamber of Mines will also contribute a bonus, say of equal amount ; and to make its
success certain the Government to arrange for a joint control with the Chamber over
such factory.

4. Pending the establishment of the factory and the supply of dynamite there-
from, companies to be allowed to import, under permits from Government, aooording
to their requirements.

Letter of Chamber of Mines. 463

Nothing came of this, and on the 5th of September the dynamite regulations
submitted by the Government were, with certain amendments, adopted by the Yolks-
raad, and the State Monopoly was duly established by law. The day following the
Chamber addressed the State Secretary asking Government not to close with any
offer that might be made, before the Chamber had had an opportunity of submitting
proposals having for their object the thorough carrying out of the dynamite
regulations as passed, and adding : ** The mines are so greatly interested, as lar^
consumers of dynamite, that it is to their interest to make such proposals as will
completely comply with the wishes of the Government, and on terms which will be
far more advantageous to the Government than those provided in the regulations."
Thotigh no reply was received, and no acknowledgment was made of the attempts of
the Chamber to assist the Government, on the 15th September the Chamber sub-
mitted the following offer to the Government on behalf of the mining industry : —

1. To erect a factory within two and a half years ; security for the carrying out
of this arrangement, to be given to the Government.

2. To pay to Government on every manufactured case of dynamite sold 5s. a
case, and 60 per cent of the profits.

3. To take over the powder factory as provided in the Volksraad regulations.

4. To arrange with the Government the details of a plan by which there shall be
a joint control (Government and Chamber) over both dynamite and gunpowder
factories.

5. Pending the completion of the factory, to import dynamite and such other
e^rolosives as may be required, for the account of the Government, and to arrange the
safe and distribution thereof to consumers, subject to such terms and conditions as
may be arranged.

Or in the alternative : —

To lend the money required for the erection of the factory to the Government at
a rate not exceeding 5 per cent per annum, provided that the Chamber shall be
allowed joint control with the Government of the dynamite and gunpowder factories ;
details of such joint control to be mutually agreed upon.

This also was left unacknowledged.

It may be remarked that under the State Monopoly the duty payable on
explosives imported under permit was fixed at 8|d. per lb. above the ordinary ad
vcUarem duty. The contract with the agent appointed by the Government to carry
the monopoly out was signed on the 25th October, the term of agency being 15 yeara

On the 9th November the Chamber discussed a draft contract with Nobel's ; the
. consideration of the details occupying them three days. The contract, as amended,
was then passed. The chief features in the contract were that Nobel's bound them-
selves to supply at 62s. 6d. per case in bond ;* to charge the same price as is charged
by the Government Agent unless the agent reduces the price to such an extent that
less than 40s. nett, would be receiveo, when they reserved the right to suspend
deliveries ; and that in the event of their erecting a factory for the manufacture of
dynamite and other explosives, a Transvaal joint stock company would be formed,
towards the capital of which the mining companies would be entitled to subscribe to
the extent of one-third in the aggregate ; the selling price of such Transvaal manu-
factured dynamite to be SOs. per case. As a result of the competition between the
Government Agent and Nobel's, the price of dynamite was in November brought
down to 75a per case, inclusive in the case of Nobel's of the heavy import duty of
8^d. per lb., and 7^ per cent ad vaZorem, equal to about 37& 6d. per case. But the

* No. 1 dynamite is referred to.

464 Letter of Chamber of Mines.

next month, though application was made, permits were refused, and the price was
again raised to 85s. per case.

With the opening of the year 1894 complaints were. made to the Chamber by
mining companies : (1) that the explosives supplied by the Qovemment A^ent were of
inferior quality ; (2) that the particular kinds required were not procuraole. On the
25th January, and on the 6th February, letters were sent to the Government covering
copies of the complaints received from companies. Owing to the constant repre-
sentations of the Chamber the Government was induced from time to time to issue
Ssrmits, which were then used for the importation of explosives of good quality. In
arch a delegate of Nobel's Company submitted a scheme for securing the mines
an opportunity of becoming shareholders in the company, which the agent intended
to form for carrying out the monopoly, and embodying particulars with regard to the
price of explosives and other matters. It was rejected on the ground that it " appears
to be vicious to public policy as well as inimical to the vital interests of the mining ^
industry," and a deputation interviewed the State President and Executive CouncitA
on the subject, as a result of which details of the proposal for the formation of i^
company to take over the working of the monopoly, which had come to the know —
ledge of the Chamber, were furnished to the State Secretary. The capitcJ of th^_,
proposed company was to be as follows : —

182,500 shares of £1 each, to be issued fully-paid to the previous concessia

aires, whose concession had been cancelled ;
25,000 fully-paid £1 shares to be issued to Mr. Lippert ;
22,500 fuUv-paid £1 shares to be issued to persons unknown ;
220,000 fully-paid £1 shares to be issued to Nobel's against payment in full xq

cash ; with the following charges : —

58. on each case of explosives to Mr. Lippert for 15 years;

2s. on each case of explosives to Messrs. Lewis and Marks for 16 years ;

2a on each case of explosives to Mr. Lippert for 8 years ;

and Nobel's also undertook, in the event of further capital being required, to take up
8 per cent, debentures to the amount of £150,000, if the money could not be obtained
by public subscription on more favourable terms. The payments to be made to the
Government were fixed at 5s. per case, and 20 per cent, of the nett profits, after
deducting 8 per cent, as interest on the share capital and the usual allowances for
wear ana tear, etc. ; also £3,750 per annum as rent for the powder factory. In their
memorial to the Volksraad, presented in the ordinary session, the Chamber recited the

Sirticulars connected with the proposed company, and pointed out that if the
ovemment received its share of profits as well as the 5s. per case, the loss to the
State, on a consumption of only 100,000 cases of dynamite per annum, would be
£141,350 per annum, as compared with the revenue obtainable from importation
under permits. And the Volksraad was asked to limit the maximum capital of any
company formed for working to the actual amount of cash paid up ; to prohibit the
special commissions or royalties proposed to be imposed for the benefit of individuals
and companies at the expense of the State ; and in view of the protection afforded to
the factory by the import duty of 37s. 6d. per case, to provide that permits should be
freely issued, unless, as an extreme case, for high reasons of State such issue be
deemed inadvisable.

In May it was ascertained that a coalition had been concluded between Nobel's
Company and the Qovemment Agent, and that a company was to be formed on
practically the same lines as those referred to above, with the exception that the
question of royalties was to be left to the new company. Information was also

Letter of Chamber of Mines. 465

received that the Government had made an arrangement with the agent, allowing him
an extension of time for the erection of the factories. In September the Qovemment
resolution, varying the terms of the contract, came before the Volksraad for con-
4nderation, and tiie following resolution was passed : Article 1711 — " The First
Yolksraad having considered the letter of the Government, dated 6th September,
1894, now on the Order, asking for confirmation of the Executive C!ouncil resolution.
Article 457, dated September 6th, 1894, accompanying the said letter ; having con-
4aidered the memorials and the Commission's report, according to the conclusions
based thereon :

Resolves : — " Not to confirm the Executive Council resolution, and not to grant the
desired authority for alteration of the instructions, and to instruct the Govern-
ment to act strictly in conformity with the regulations confirmed by the
Volksraad." (Nevertheless the Government, as will be seen later, did alter the
instructiona)

To memorialists the Volksraad replied that their " request cannot, be granted, as
the matter was decided by the Volksraad last year."

In 1895 the Chamber again memorialised the Volksraad, pointing out that on an
annual consumption of 100,000 cases of dynamite, the loss to the State from the
monopoly exceeded £140,000 a year ; this being the difference between the amount
paid to the Government, and that which otherwise would accrue from customs dues
•on importations under permits ; that the monopoly prevented the importation and
testing of new explosives alleged to be as effective ana much cheaper than dynamite ;
and praying that the Volksr^td would consider the ^advisability of steps being taken
for the purchase of the rights of the agent before further expenditure had been
incurred in connection with the factory, so that the Government may recover its
freedom of action, and be able to allow the mining companies to buy in the cheapest
markets such explosives as may be most suitable for the work to be done. As reply,
the Volksraad forwarded the following copy of its Memorial Commission's report : —

" The Commission taking into consideration the numerous discussions in the First
Volksraad on this subject ; taking into consideration Article 7 and Article 13 of the
regulations referring thereto; considering that, in accordance with Article 6,
maximum prices are fixed for the term of eight years, cannot recommend your House
to have the rights of the agent purchased by the Government, as suggested in the
memorial of the Witwatersrand Chamber of Minea"

In 1896 it was deemed futile to send in a memorial to the Volksraad, as the reply
to that of the previous year indicated the determination of the Legislature not to
consent to the purchase of the agent's righta

During the special session of the Volksraad, held at the beginning of this year, a
-commission was appointed to enquire into the working of the monopoly, and their
report was presented on the 19th February last. In this report the commission inter
ana drew attention to the following facts :-r-

1. That the agent has failed to carry out his contract with the Government to
establish factories for the manufacture of explosives in accordance with the require-
ments of the country within the time fixed, and that even within the further 2^ years
which the Government have allowed him, he will still be unable to do so.

2. That irrespective of the profit on explosives made at the factory, a profit of £2
per case is made on explosives imported at the cost of the State, of whiclx the agent
takes d5& and the Government 5s. per case.

3. That during the four years, 1897 to 1900 inclusive, it is estimated that at least
-480,000 cases of explosives will have to be imported, which, if imported by the State

466 Letter of Chamber of Mines.

direct, would benefit the Treasury to the extent of £860,000, and if dealt with as at
present, would give the State only £107,500 ; a difference to the detriment of the
State of £752,000.

4. That there is no prospect that the production of explosives will be independent
of the importation of some oi the raw materials.

5. That the C!ommission also expresses a doubt as to the possibility of reoonciUns^
the Executive resolution, varying the terms of the contract, with the Yolksraad
resolution Art. 1711, and Art. 16, rar. A, of the contract with the Government Agent
Thus it is clear that the object which the Government had in view when advocating
the establishment of a State monopoly, viz., that the State should be rendered inde-
pendent of foreign sources for the supply of explosives has not been and cannot be
attained ; and that the mines have been and still are seriously burdened, and. the State
is deprived of a lucrative means of revenue, simply for the maintenance of a factory
which has to import raw materials in any case, and for the most part importe the
already made explosive, and for the benent of the shareholders and other persons
having an interest in the South African Explosives Company. The more salient
features of the commission's report have been 8et forth in tne memorial presented by
the Chamber to the Yolksraad, in which also the statement is made that in 1893
Nobel's undertook to deliver in Johannesburg, free of duty, down to 40s. per case, and
that there is reason to believe that it can be imported now at about that price.

The Chamber has, hitherto, endeavoured, though fruitlessly, to induce the Govern-
ment and the Legislature to allow the mines to purchase dynamite in the cheapest
markets. Were this allowed, dynamite could be obteined, inclusive of 58. per case
duty, the amount paid by the agent to the Government, at about 45s. per case, whidi
on the present consumption would mean a saving of about £400,000 a year to tiie
mining industry, and would leave the State revenue from explosives undisturbed. In
conclusion it may be pointed out that, according to the published stetemente of State
revenue and expenditure, the only payment made by the company has been Ss. per
case, and that though large profite must have been made, the Government has sour
received nothing on accoimt of ite 20 per cent, share in the nett profits.

NATIVE LABOUR AND PASS LAW.

With the development of the mining industry and the consequent increase in tie
demand for labour, the question of supply became a matter of considerable concern to
the companies. In the beginning of 1890 a scarcity of supply was experienced, and
from that time forward, the subject of native labour has engaged the almost uninter-
mittent attention of the Chamber. The first communication to the Government w«»
sent on the 23rd January, when it was pointed out that private enterprise had failed
to maintain an equilibrium of supply and demand, and the authorities were asked to
render assistance by inducing the natives of the thickly populated native districts to-
come to the fielda The Government merely acknowledged receipt of the letter.

The subject was also brought to the notice of the Blinister of Mines, who promised
assistance, and to that of the State President personally, on the occasion of his visit to
Johannesburg, but without result. Still, owing to the efforte of the Chamber and tie
mining companies, the supply was brought nearly up to the demand, and later in the
year, by the combined action of the industry, under direction of the Chamber, the rate
of wages was reduced to from 41s. 6d. to 44s. per month.

In the winter of 1891 the supply again fell short, and numerous complaints were
received of the want of shelter on the main routes, and of the ill-treatment to which
the natives were subjected by farmers while coming to the fields. The Chamber

Letter of Chamber of Mines. 467

accordingly asked the Yolksraad to provide shelters on the principal roads, and to
secure protection for travelling natives ; while a letter was addressed to the First
Yolksraad member for Johannesburg, in which it was stated that there was a serious
want of native labour, and the hope was expressed that during the session some
measure to afford relief would be passed. The letter closed as follows : — " The mining
community has made a strong endeavour to relieve itself of this unreasonable burden^
but standing alone, little can be done, and it is to be feared that the efforts of the
mines cannot be much longer sustained if the Yolksraad and Qovemment do nothing
to assist them." Still nothing seems to have been done during the session.

As in 1892 the Government did not take any specif action, the Chamber
approached agents in the neighbouring States, who expressed their willingness to
co-operate, the Cape Qovemment offering to reduce railway fares for natives. It was
then decided to organise and carry out the supply of native labour.

Early in 1893 the Chamber introduced labour from the Cape Colonv which,
however, failed to give satisfaction, owing to the natives objecting to work under-
ground. In March, a deputation went to Pretoria to discuss the matter with the
Government, and, in especial, to ask for the appointment of a Government Com-
missioner, whose duty it would be to communicate with the native chiefs, to provide
shelter and protection for travelling natives, and to work in conjunction with the
Chamber in all matters relating to native labour. The deputation also informed the
Government that it was the desire of the Chamber to appoint an officer to organise
the labour supply ; to give his official sanction to contracts between the employers and
the natives ; to be the medium of communication between the mining companies and
the Chamber, in relation to native labour ; and generally to perform the functions
devolving on a special Government officer, appointed in countries where State-aided
immigration obtains. The Government, in reply, asked that the matter might be laid
more fully before the Superintendent of Natives and the State Attorney. The claim
of the Chamber to receive support was admitted ; but though the proposals were
submitted in detail to General Joubert, Superintendent of N'atives, on the 28th
March, no reply was received. On the 16th May, a letter was accordingly sent to the
General, drawing his attention to the previous communication. Again no reply ; but
during June he intimated verbally that he had handed the communication to the
Government, and that he was in favour of the scheme and would support it. After
waiting a month, on the 10th July the Chamber addressed the State Secretary,
referring to the interview in March and detailing the action of the Chamber since,
and asking the Government to give its moral support to the Chamber's scheme. No
reply was, however, received. The Chamber waited another month, hoping that a
favourable answer to its representations might still come to hand from the Govern-
ment, and none then being forthcoming, decided to proceed at once with the establish-
ment of a Native Labour Department, as, owinc to the prevalence of small-pox, the
supply of labour from the north fell off, and the necessity for exceptional efforts
b^ame manifest. In view of the objection of the Government to the introduction of
labour from the Cape Colony, arrangements were made to obtain a supply from the
East Coast, but to ensure success the help of the Government was necessary;
in particular to obtain the consent of the Governor-General of the Province
of Mozambique to the emigration of natives to this State. The deputa-
tion that waited on the Government on this subject received satisfactory
assurances. But in November the Acting State Secretary informed the Chamber
that its action would only be supported if the natives from the East Coast were
brought overland via Delagoa Bay. The Chamber's lately-appoint^ Native Labour
Commissioner went to Pretoria and saw the State Secretary, giving him assurances

468 Letter of Chamber of Mines.

that the wishes of the Qovemment would be complied with, though the Natal route
was the cheaper. This settled the matter so far, out the State Secretary stated that
under no circumstances must natives be brought in until the Government had received
a reply to the communication on the subject addressed to the Governor-Gteneral of
Mozambique. At the opening of the session a memorial was presented to the Volks-
raad, in which legislation, with the object of securing a more regular supply of labour,
was asked for. A Native Labour Commission, appointed by the Volksraad, reported
that the complaints of the Chamber were well founded, and recommended that the
instructions already given to the Qovemment to frame an act dealing with the
subject should be repeated and emphasised. At the same time, suggestions were
made by the commission [for the adoption of certain provisional measures calculated
to induce the natives to come out to *work, the chief object being to secure labourers
for the farmers. The Volksraad approved the report, but instructed the Government,
in consequence of the prevalence of infectious diseases, to prohibit the natives from
travelling. General Joubert and Commandant Erasmus met the Chamber on the
30th November, when it was suggested to them : (1) that proper protection should
be afforded to travelling natives ; (2) that the Pass Law should be so amended as to
afford facilities for natives to travel in search of work ; (3) that provision should be
made for the registration and numbering of, and the issue of distinctive badges to,
the natives on their arrival at their destination ; (4) that the hut tax should oe in-
creased as an incentive to the natives to work ; and (5) that permission should be
granted to mining companies to establish locations. Suggestions 1, 2, and 3 received

feneral assent, but the other two evoked differences of opinion. However, General
oubert stated that he was convinced that the supply of labour was inadequate, and
promised his support in inducing Government to legislate in the right direction as
soon as possible. Commandant Erasmus expressed concurrence with the General's
viewa

In 1894 the necessary permission having been obtained from the Portuguese
authorities, the Chamber considered various schemes for the importation of labour
from the East Coast, as well as from the north of the Transvaal. The chief diffi-
culties to be encountered were the want of adequate protection for travelling natives,
and the impossibility of enforcing labour contracts with natives owing to defects of
the Pass Law. With regard to the first, representations were made to the Govern-
ment complaining how natives travelling to these fields were frequently harassed and
robbed. The Government replied that instructions had been issued to all officials to
afford protection to natives ; but as no good result^s were obtained from the action of the
Government, the Chamber decided to erect depots where travelling natives could get
shelter and food, and where they would find persons who would investigate any com-

Slaints of illtreatment on the road. Respecting the second, the Chamber undertook to
raw up regulations dealing with the issue of passes, registration of natives, provision
for identification, etc. After having obtained advice from the Department of Native
Affairs in Natal, regulations were drawn up which were adopted by the Chamber and
Association of Mine Managers. They were afterwards submitted to the Mining
Commissioner and Assistant Landdrost, and upon their advice forwarded on the
28th March to the Government. The State President and the Executive CooncO
expressed their complete concurrence with the principle of the regulations, and lecog^
nised that such a measure was urgently needed. However, they were not at the tine
gazetted, and upon inquiry being made, the Chamber learned from the State Secretaiy
that there was no immediate prospect of the Government taking action in the nmttcr*
Several interviews then took place between the Superintendent of Natives and a
committee of the Chamber, but no progress was made. The Chamber being anzioos

Letter of Chamber of Mines. 469

to have the regulations promulgated by the beginning of the next year, sent another
deputation, accompanied by the Mining Commissioner, to Pretoria, on the 22nd
November. The President agreed with the views expressed by the deputation, and
the matter was referred to a committee consisting of the Superintendent of Natives
and the State Attorney. This committee, after having made one or two imimportant
alterations, recommended the regulations to the Government for adoption, with the
suggestion that, if adopted by the Government, they were to be gazetted for one
month for public information, and to afford an opportunity for objections to be sent
in; and if no objections were sent in, they were to be put in force temporarily,
pending confirmation by the Volksraad. The presentation of the committee's report
was, however, delayed by the departure of the President ; but it was expected that
the regulations would be gazetted early in the coming year.

In the early part of 1895 the labour supply was plentiful, and then it began
steadily to decrease ; and, in May, owing to several native wars then in progress, the
stream to the fields practically stopped : not only the natives ceased to come down
from the North, but of those that were working on these fields large numbers left for
their homes, while the commandeering of 4,000 natives from the northern districts
utterly disorganised all attempts at improving the supply. Towards the end of June
the war was over, and the Chamber learnt that General Joubert was on his way back
with about 5,000 natives, whom he intended to locate in the Warm Baths district.
The Chamber's native commissioner made written application for the allotment of
1,000 to 1,500 for service at the mines, to alleviate the great scarcity of labour, but a
reply was given that the proposal could not be entertained, aa, according to rights
established by precedent, the burghers were entitled to the men. However, from this
time the supply from the North somewhat improved, although continuing far below
the demand. The Chamber devoted considerable attention to the question of impor-
tation of labour from the East Coast, but the cost to be incurred was so high that
<X)mpanies did not care to undertake this on a large scale, as long as the pass regula-
tions were not proclaimed, and enforcement of contracts was impossible. As nothing
further had been heard from the Government concerning the report of their own
-committee, which, at the end of the previous year, had advised the adoption of the
regulations, a memorial was sent to the Saad at the opening of the session, asking
that body to pass the regulations, and the Chamber did everything possible to get
them preased forward for adoption. After considerable delay they were passed on the
3rd October by the Raad, suostantially, as drafted by the Chamber. In view of the
scarcity of labour on the fields, it was decided to imprest upon the Government the
desirability of proclaiming them without delay. Letters were forwarded on the 11th
and 21 St October to the Government, dwelling upon the fact that the matter of pro-
clamation was an urgent one. No reply was received ; but on the 18th December,
the Rand and De Eaap districts were proclaimed aa falling under the regulations,
which were to come into force on 1st January, 1896. Considering the urgency of the
question, the various delays experienced caused great dissatisfaction. The regulations
were handed to the Government in March, 1894, and although the Government ex-
pressed approval of them, they were not submitted to the Ra£^ until the 1895 session ;
and then were only passed at the beginning of October, the districts coming under
them being proclaimed two and a half months later, while no provision appeared to
have been made for the appointment of officials for their administration.

In 1896 assistance waa again asked from the Government to secure an adequate
cmpply of labour, and the Chamber was informed in February, that in terms of the
proclamation of the State President the Government would formulate plans to help
the mining industry, and that further information would be given vrithin a few daya

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Letter of Chamber of Mines. 471

NATIVE LIQUOR TRADE.

As early as 1890 the question of the sale of mtoxicating liquor to natives at the
mines engaged the earnest attention of the Chamber. Repeated complaints were sent
in by the companies to the Chamber, and after many applications on the part of the
Chamber to the Government officials, the Assistant Landdrost, Mr. Van den Berg,
discussed the question in detail with the Executive Committee, and several amendment
in the law were suggested and embodied in a memorial to the Government praying
that a severe check be placed upon the sale of liquor to natives.

In 1891 another memorial was presented to the Volksraad reciting the baneful
effects of the sale of drink on the worK at the mines, and requesting that no liquor
should be sold to any coloured person without a permit from his employer ; any con-
travention to be punished by fine and immediate cancellation of licence.

A law whicn was intended to limit the sale of liquor was then passed by the
Bead, but it had such grave flaws that its working proved an utter failure. It was,
in fact, rendered absolutely nugatory by the clause which allowed unemployed natives
to Oi tain one drink, at any canteen, without a permit Another cardinal defect was
the broadcast manner in which licences were issued to practically every applicant, so
that the number of canteens was increased out of all proportion to the requirements
of the population.

In 1892, therefore, a memorial was presented to the Volksraad, pointing out the
evils existing under the law of 1891, praying for its amendment, and either the total
prohibition of the sale of liquor to natives or the most stringent restriction of sale.

In other memorials and communications reference was made to the alarming
proportions attained by the sale of liquor to natives, the fact being instanced that on
a particular Sunday 466 natives had been counted leaving two canteens on a mining
company's property. The chief cause of the evil was the indiscriminate manner in
which canteen licences were issued by the Pretoria Licensing Board, no less than 572
having been granted for the Witwatersrand goldfields ak>ne. The position was
somewhat improved by an amendment to the Liquor Law, under which provision was
made for the appointment of local Boards, the Chairman of the Chamber being
eventually nominated a member of the Johannesburg Board : but in spite of the
Chamber s representation to Government, no representatives of the mining industry
were appointed to the Boksburg and Erugersdorp Boarda

It having come to the knowledge of the Chamber, in 1893, that petitions would
be presented to the Legislature askmg for modification of the constitution of the
Licensing Boards, and for the right of appeal against their decisions, the Chamber sent
in an opposing memorial, and the law was maintained unaltered. During this year
there was a notable improvement in the Johannesburg district, but numerous and
serious complaints were received by the Chamber from mining companies in the
neighbouring districts of Boksburg and Elrugersdorp, where like care, in the issue of
licences had not been exercised.

In January, 1894, the Executive Committee of the Chamber met the Minister of
Mines, to whom they fully explained the unsatisfactory state of affairs in connection
with the native liquor trade m the Boksburg and Erugersdorp districts, and asked
him to support the Chamber in endeavouring to secure representation of the mining
industrfr on the Licensing Boards of those oistricta In consequence of the grave
complaints which continued to reach the Chamber from those quarters, on the 7 th
April a memorial was sent to the State President and Executive Council, in which the
evils caused in those districts, by the practically unchecked supply of liquor to natives,
were set forth in detail, and the request for representation of the mining industry on

472 Letter of Chamber of Mines.

the Licensing Boards waa repeated. Exactly a month later the State Secretary
replied that the Qovernment, having obtained the advice of the officials concerned,
could not accede to the request. Towards the end of the year frequent complaints
were again received, and the Chamber again addressed the Qovemment on the serious-
ness of the position, and once more asked for the appointment of mining representatives
to the Licensing Boards. In March, 1895, the reply came, stating that the Government
could not alter its previous decision.

The mining companies of the fields generally were greatly hampered in their
operations by the prevalence of drunkenness among their native employees, a large
percentage of whom were, from this cause, constantly incapacitated for work. This
was due to the facilities to obtain liquor offered alike bv licensed houses and by illicit
dealers. As it was considered most important that baoly conducted places should be
closed, and the number of licences in general reduced, the Chamber recommended the
companies to instruct their managers to submit to the Licensing Boards any valid
complaints that they might have, and to appear in person in support thereof, and to
object to the granting of the licence.

In 1896 uie Chamber addressed the Government, and presented a memorial to the
Volksraad on the increase of the illicit liquor trade, and asked for a strict enforcement
of the provisions of the Liquor Law, and for closer supervision of the canteens. The
Volksraad, in response to these representations, having appointed a commission to
consider certain proposed amendments of the Law, the Chamber availed itself of the
opportunity to pass a resolution strongly advocating the total prohibition of the sale
of liquor to natives, and sent a copy to every member of that body. To the great
satisfaction of the Chamber a prohibition clause was embodied in the law.

On the amended law coming into force on the 1st January, 1897, there was an
immediate and marked improvement in the condition of the mine natives, and during
the first month of the vear there was almost a total disappearance of drunkenness
among them. The relief, however, did not last long. Illicit selling soon became
rampant, and to-day the state of things is worse than ever. This year the Chamber's
memorial to the Volksraad laid special stress on the illicit liquor trade, and on the
inability of the police to cope with it, asking, as a remedy, that a Government Board
might be established, with a body of special detectives under its control ; and also
praying the Legislature to maintain the prohibition clause, and the exclusion of
canteens from the mining areas.

Letters, in some cases three and four, complaining of the revival of drunkenness
among the natives have, since about the end of January, been received from the
following companies : —

Salisbury, City and Suburban, East Rand Proprietary Mines, Robinson Deep,
Knight's Deep, Henry Nourse Deep, Henry riourse. West Roodepoort Deep,
Bonanza, Treasury, Paarl Central, New Heriot, Robinson, Wolhuter, Minerva,
Balmoral, Orion, Vesta, Geldenhuis, Rietfontein A, Worcester, Jumpers, and
Nigel.

From these the f oUovring have been selected as illustrative of the magnitude of
the evil : —

Henry Nourse Gold Mining Company, Limited,

Johannesburg, 29th April, 1897.
The Secretary,

Witwatersrand Chamber of Mines,

Johannesburg.
Dear Sir, — Upon the instructions of my Boards I beg to hand you the eadofled*

Letter of Chamber of Mliiies. 473

copy of a letter from our manager, with reference to a disturbance between the native
employees of the Henry Noorse and Nourse Deep CJompanies on Sunday, the 25th
insL, which is attributed entirely to the illicit liquor traffic carried on in the vicinity
of the above mines.

Yours faithfully,

(Signed), W. M. TUDHOPE,

Secretary.

[Copy of Letter received from the Manager, dated S6th April, 1897.]
W. M. TuDHOPE, Esq.,

Secretary, Henry Nourse Gold Mining Company, limited.

Dear Sir, — Yesterday afternoon there was a fi^ht letween our natives and those
of the Nourse Deep, Limited. They have smashed nearly all the windows in the
place, both here ana at the Noiurse Deep, and knocked up things generally. I would
very much like one of the directors to see the dama^ so that it could be brought
before the Commission. It all started through them being drunk, and, of course, the
police were not to be found. The Heriot Bar and the kaffir location were the places
from which they got the liquor.

Yours truly,

(Signed), J. WHITBURN,

Manager.

[Copy of Letter received from Manager re Illicit Liquor Traffic,]

W. M. TuDHOPE, Esq., Secretary.

Dear Sir, — Would you kindly forward this to the directors as soon as possible*

I have again to complain of the selling of liquor to kaffira Almost everywhere
along the reef it is being carried on to a far greater extent than it ever was before,
and the police seem to be of no use whatever in suppressing it.

During Saturday night and yesterday the place was f i3l of drunken kaffirs. The
boys state that the liauor was got from the following places : —

Canteen at the New Heriot.

Elaffir location on Louis D'Or Q.M. Co., Ltd.

Shops around the Penzance Hotel.

Store at the back of our battery manager's house on the Eimberley Main Beef
ground.

Henry Nourse Hotel.

Our compound manager sent boys who bought liquor from a white man standing
at the comer of the verandah of the Henry Nourse Hotel. This man, as fast as he
sold one bottle, would enter the store and bring out another. Boys were also sent to
the store at the back of the battery manager^s house, and liquor was again purchased
there. Some kaffirs who were drunk stated that they bought four bottles from the
Heriot Bar, two of which they finished in the place, and the other two along the road.
They say they are able to get any quantity they want, but the price has been raised
to 7a per bottle. The police were about here yesterday afternoon, sergeante I believe,
as they wore stripes. Eveiything^ was quiet during their stay, and for a quarter of an
hoior before their arrival, but within ten minutes of their departure the trade was

474 Lettea- of Chamber of Miiiies.

carried on as briskly as ever. To-day there are several drunken kaffirs about, and a
very great number unable to work.

I trust that every influence, will be used to bring about the suppression of this
curse.

Yours faithfully,

(Signed), J. WHITBURN,

MaTicbger,

Worcester Exploration and Gold Mining Co., Ltd.,
Johannesburg, 10th February, 1897.
Commandant Van Dam.

Dear Sir, — I beg to bring to your notice the continued sale of liquor to natives,
which is carried on so lai^ely that we are fast returning to the old condition of things
prior to the new Liquor Law coming into force.

The Wiltshire Bar, just below Ferreira Q.M. Co., and Princess Bar, near our mine,^
do a roaring trade. The latter has been frequently reported, but no conviction haf=3
been obtained.

Kaffir eating-houses swarm in this neighbourhood, and most, if not all, of then=ai
sell liauor — one m particular, near Oliver's Mill, on Booysen's Road, is doing an exten.^
sive illicit business, and so are the bars situated at Ophirton.

I shall be pleased to render any assistance in trapping offenders, but think it wiTlj
be better to employ your own traps, but just as you please, and I confidently hoc2»
that you will give this matter your serious and early attention, as our work is greatk?<
hindered by the drunkenness of our kaffirs.

Yours truly,

(Signed), J. L. de ROOS,

Manager,

Worcester Exploration and Gold Mining Co., Ltd.,

Local Office, P.O. Box 75,

Johannesburg, March 16th, 1897.
The Secretary^

Chamber of Mines,

Johannesburg.
Dear Sir, — I beg to hand you copy of a letter addressed to Commandant Van
Dam, but nothing has been done to check the illicit liquor traffic — in fact it is more
rampant than ever, and boys in squads can be seen openly carrjring and drinking
liquor ad. lib. .

On the 8th inst. upwards of 300 of our natives were drunk and incapable.
In addition to the bars mentioned in my letter to the Commandant, the Good
Lu<^ Bar, situated close to the Robinson Co.'s boundary, is notorious, and it may
safely be said that all bars, directly or indirectly through the eating-houses, are con-
travening the law.

I am of opinion that the Sanitary Board should be addressed on the matter of
licensing kaffir eating-houses, which are a principal channel of supply of liquor to
natives, and while they are allowed to carry on this nefarious business it is hopelesBto
attempt to keep the natives sober.

I remain, yours truly,

(Signed), John L. db BOOS,

Mamagv*

Letter of Chamber of Miiied. 475

The Nigel Gold Mimng Co., Ltd.,

Head Office, Pietermaritzburg, Natal,

29th April, 1897.
To the Landdrost,

Heidelberg, Z.A.R,

Sir, — I am desired by my board of directors to again bring to your notice the
'fact that although the Inquor Law in the Transvaal provides that no drink shall be
supplied to natives, yet at tnis company's property drunkenness amongst these people
is as rife as ever.

The authorities have, for reasons best known to themselves, withdrawn the
licence of the only canteen situated on this company's property, but have re-granted
licences to seven hotels and canteens, all within a distance of a few hundred yards
from our boundary, and it speaks for itself that these seven liquor houses cannot be
made to pay by serving white people only, and the consequence is an enormous native
trade and attendant demoralisation of our boy&

The gravest feature of this matter is that this pernicious trade is carried on right
xmder the noses of the police and local authorities, and although information has been
given and witnesses sent to prove violation of the law, yet m no case whatever has
conviction followed.

It is unnecessary to go into details — this evil is one that is too well known — and
it only comes to this, that the board of directors of this company plainly see that it
will not pay the company to resume crushing until some assurance is forthcoming
that our native labour can be used to the best advanta£^, and this assurance can only
be had by the Government strictly carrying out the law, or closing altogether the
whole of the canteens in the neighbourhood of our property.

I am. Sir,

Yours obediently,

F. WEIGHTON,

Secretary,

ROBINSON DEEP— Statement.

On Wednesday, the 7th April, at 6 p.m., an employee of the Robinson Deep,
Limited, named Henry Kempster, accompanied by two witnesses not employees of
that company, and a kaffir in the employ of the Robinson Deep, Limited, proceeded to
the Hanover Bar, Ophirton, where he suspected liquor was being sold to natives.

The kaffir was given 5a, and on presentation of that amount the proprietor of the
ELanovar Bar, C. Beiles, handed him a bottle of liquor, which the kaffir at once handed
•to Mr. Kempster.

Mr. Kempster at once took the bottle to the Chaige Office, Johannesburg, in
order to lay a charge against the bar proprietor, but the Charge Office officials refused
to receive the charge, and directed him to the Detective Department, who in turn re-
•directed him to the Charge Office, informing him that tney did not receive any
<oomplaint of that nature. Returning to the Charge Office, Mr. Kempster was
instructed to proceed to the mounted police, who, however, told him they knew
nothing of the matter, and could only refer him to the Charge Office again.

476 Letter of Chamber of Mines.

Mr. Kempster then returned with the bottle and deposited it, sealed, in the mine
office of the Kobinson Deep, Limited, where it is at present.

Paarl Central Gold Mining and Exploration

Company, Limited,

Mine Office, 1st March, 1897.
Special Landdrost,

Johannesburg.

LIQUOR LAW.

Sir, — I beg to inform you that on Saturday night about ten o'clock, a cart drawn
by four oxen was standing on the dam- wall of this company, near Langlaagte Village,
selling liquor to natives.

Also during the whole of yesterday (Sunday) liquor was being sold wholesale to
the natives at some canteens m the village, and, as a result, daring Saturdav night,
Sunday and Sunday night, a large number of my boys were drunk and unfit ror work
to-day.

Trusting that this matter will receive your prompt attention.

I have the honour to be.

Sir,

Tour obedient servant,

(Signed) JAMES B. LITTLE,

Oeneral Manager.

RAILWAYS.

In 1889 the Chamber urged upon the Government the absolute importance of
speedy railway connection with the sea, in the interest of the gold mining industiy
and of the State in general. Several endeavours were made to induce the Govern-
ment to receive a deputation on the subject, but without avail. And it was not till
the visit of the President to Johannesburg in March, 1890, that a definite official
annoimcement was made that early steps would be taken to make the railway to the
coast. In 1891 the Chamber wrote to the Government objecting earnestly to the
proposed postponement of construction work, owing to financial considerations on the
part of the Netherlands Company ; and at the close of the year arrangements were
made which gave promise of an early completion of the line. In September, 1893,
the first through-train arrived in Johannesburg ; but great as have been the advan-
tages derived horn the railway, especially in rendering transport independent of
seasons, they have been largely neutralised by the high tariff imposed by the 0(Hn-
pany.

The rates charged are not only inordinately high as compared with those of other
countries, but are c^reatly in excess of those of the Cape Colony, Natal, and the Free
State, which nevertheless secure an exceptionally large return on their several railway
systems.

The following table of through-rates shows the difference in charges, and in this
connection attention may be drawn to the fact that, while the Cape and Natal rail-
ways have to raise their traffic to an altitude of 3,988 feet and 5,433 feet respectively,

Letter of Chamber of Mines. 477

the Netherlands Railway proceeds

from the termini of these systems along a practi-

cally level coarse : —

NOftMAL.

UnEmDun.

BonaH.

Pw ton per mile.

Per ton per mile.

v^aiie • • • • • •

...

2-34

1-3

Oranee Free State . . .
Natal

• • •

2-34

1-3

...

304

3-04

1-94

Portuguese...

. . •

4-07

3-53

2-44

Netherlands, via Cape

...

7-7

„ „ Natal

...

506

3-82

3-26

„ Delagoa Bay

4-27

3-69

2-54

And even for the carriage of South African agricultural produce the other
systems offer greater facilities than the Netherlands Company, as follows : —

Cape, for 23 miles ... ... }d. per ton per mile plus terminal&

Orange Free State, for 28 miles

II »» II II

>»
II
II

II II "*•' «*•««• • • • »* —wx*. n II II

„ Delagoa Bay... 2-2d. i, » i,

Natal, for 13 miles

Portuguese...

Netherlands, tna Cape andO.F.S.

„ Natal

„ Delagoa Bay ...

2-2d.

II
II

3-ld.

3-26d.

2-2d.

i»

It is unnecessary to give specific examples of the actual railway charge in money
on goods from the coast, as this has been fully dealt with in the evidence of
many of the witnesses who have appeared before you ; and the comparative tables,
given above, afford eloquent testimony of the abnormal rates levied on the Transvaal
une&

As early as 1890 the Chamber found it necessary to complain alike of the
administration of the Band Tramway, as the coal line from JSoksburg to the
gold mines was called, and of the exorbitant rates charged for the carriage of
coaL In May the Mining Commissioner was addresed on the subject, and in
October a communication was sent to the Government In the letter to the
Qovemment the Chamber asked to be allowed to send a deputation to discuss
matters in detail, and the following grievances were set forth: — ^That the rates
diM^;ed between Brakpan and Boksburg were irregular; that differential rates
were charged; that, while the tariff was stated not to exceed 2j^d. per ton, per
kilometre, a much heavier charge was made between Boksburg and Johannesburg ;
that, though the Netherlands Company had engaged to construct sidings, they had not
done so, and that this failure to carry out the engagement caused considerable extra
expense to the companies for delivery of coal hi November the State Secretary
replied that Mr. Verwey, general manager of the Netherlands Railway Company, was
travelling in Natal, ana that, as it was desirable he should be present at the proposed
interview, an appointment would be made on his return. After Mr. Verwey s return
another letter was sent to the State Secretary pressing for an appointment, and referring
to the letter sent in November, but to this no i*eply was received. In 1891 a memorial
was presented to the Volksraad detailing the administrative shortcomings of the
Netherlands Company, and the high rates for transport of coal ; finally asking for
relief. The company evinced a better disposition to meet the reauirements of the
mines by slightly reducing rates, and by making arrangements for the construction of
some sidings. In June, 1892, Mr. Middelberg, who expressed a desire to meet the
wishes of the industry, had an interview with the Executive Committee, when the

478 Letter of Chamber of Mines.

insufficiency of rolling-stock, difficulties with regard to sidings, and the high transport
rates were referred to. The contracts for sidings were amended, and it was stated that
additional trucks were on the way from Europe ; but, though it was admitted that the
rates were high, no prospect of an early reduction was held out. The proposal for a
line to the south of the main reef was submitted, and was favourably entertained, but
no active steps were taken to carry it out till last year, when the Volksraad refused to
sanction construction, on the ground that the information before them was insufficient.
This year it is hoped the necessary authority will be granted, and the Chamber has
memorialised the Volksraad with regard thereto.

Early in 1893 companies complained to the Chamber of scarcity of coal, and in
some cases operations had to be suspended. The Chamber entered into telegraphic
communication with the Qovemment, urging that the strongest pressure shoula be
brought to bear on the Netherlands Bailway Company to compel it to fulfil its obliga-
tions to the mining companies. No replies were, however, received. In May complaints
against the company were renewed, and a telegram was again sent to Government
asking it to give its earnest attention to the matter. This time a reply was received
stating that the telegram re coal transport had been referred to the Qovemment Com-
missioner for Railways, to whom in future communications on railway matters should
be addressed. The Chamber thereupon telegraphed to the Railway Commissioner^
pointing out the urgency of the case, but failed to elicit a reply. About a fortnights
later the Chamber wrote to the Commissioner informing him that since the last com—
munication further complaints had been received with respect to the Netherlands
Railway Company failing to deliver coal to the mines, owin^ to an insufficiency of
trucks, and pointing out that the company should be compelled to provide an adequate
number of trucks for coal transport, or allow the companies to do sa Again there
was no reply. In the middle of June the Chamber telegraphed to the Commissioner
on the same subject, and at last, through the Assistant Commissioner, an answer was
obtained, but it amounted mainly to an excuse for the negligence shown by the rail-
way company, adding, however, that, if the Chamber could obtain the loan of trucks
from the Cape Government Railways, the Netherlands Company would pay for them.
In July, in response to the repeated representations of the Chamber, the Commissioner
came to Johannesburg to hear complaints, when the Chamber's deputation laid stress
on the fact that the railway company should not only secure sufficient trucks tot
transport of coal, but should grant greater facilities for the construction of sidings ta
the mines; the desirability of a line to the south of the main reef was also tugfei
After this, owing to the arrival of trucks from Europe, the transport service improved.

In June, 1895, owing again to insufficiency of trucks, the coal transport service of
the Netherlands Railway broke down, and the danger of mines having to suspend
operations became imminent. In these circumstances the Chamber appealed to tte
C&i,pe Government Railways to lend the Netherlands Company as many trucks as they
required, and the appeal was at once fully responded to. The prompt action of the
Cape Railways averted what would have been a serious industrial crisis ; but a letter
to the Netherlands Railway Company, sent a few days later by the Chamber, asking
them to expedite the return to the Cape of trucks bringing up goods, so that there
mi^ht be no necessity for sending back those lent for coal transport, was not even
replied to.

In May, 1896, the old condition of things recurred. Once again the railway com-

gny was unable to deliver coal to the mines in sufficient Quantity. The Netherlaods
^mpany was addressed on the subject, and a copy of the letter forwarded to the
Government, with a request that they would use their influence to induce the compa^f

Letter 6f Chamber of Mines. 479

• provide sufficient trucks for coal transport. No reply was received from
ovemment.

The present rates for transport of coal on the Rand Tram, according to the sliding
ileage scale for coal> vary from a maximum of 3d. per ton per mile to a mmimum of 2d.
tr ton per mile; the ^rverage for distances up to 40 miles being 2^d. per ton; the charge
om Springs to Johannesbiurg being £3 4s. 2d. per 10-ton truck, for which on the
atal system for the same distance only 12s. lid. would be paid ; while the same
tmpany's rate to Delagoa Bay is '54d. per ton per mile ; in the Cape the coastward
.te is ^d. per ton per mile ; the inland rate Id. per ton per mile ; in the Orange Free
^te the rate is ^a. per ton per mile ; all on the basis of a 2,000 lb. ton ; in Natal the
.te is ^d. per ton per mile for the 2,240 lb. ton. This comparison shows that the rate
T carrying coal from the collieries in the vicinity of the Rand to the gold mining
»mpanies cannot be described as other than extortionate.

To sum up the position we may draw attention to the fact that the Netherlands
ailway Company earned last year, over and above the working expenses and
aaranteed interest on loans and capital, the sum of £1,330,000. They also enabled
-we might fairly say forced — ^the Cape and Natal lines to earn £1,801,000 profit,
^des 4 per cent, interest on their capital. That is, the Transvaal consumers were
xed to the extent of £3,131,000 for the benefit of these three railway administra-
3ns.

The Chamber recently presented a memorial to the Volksraad asking that pro-
sion may be made for the expropriation of the Netherlands Company's railways ;
id, in its opinion, this will prove the only effectual means of preventing the system
overcharges, which, it must be presumed, will always be attempted by a purely
•mmercial monopolist enterprise, and for utilising the railway system to the fullest
:tent for the development of the mining industry and the advancement of the
sneral interests and prosperity of the country.

GOLD THEFTS.

In 1891, in its memorial to the Volksraad, asking for amendment of the Gold
i,w, the Chamber also urged the necessity of provision being made for the detection
id punishment of thieves and receivers of gola. And it may at once be stated that the
olksraad has favourably received and ^ven effect to the suggestions of the Chamber
ith regard to amendments to the Gold Law, imposing restrictions on the purchase and
^ssession of raw gold, etc., and providing penalties for breaches of the law. But the
ilure to provide adequate protection to the mines has been, and still is, due to faults
administration. The law provides for the punishment of offenders, but no efficient
achinery exists for bringing them to justice. Thefts have, therefore, gone on
"actically uninterruptedly since the early days of gold mining here, though tiie com-
mies have endeavoured to protect themselves by Si the means in their power ; and
Lcept for an occasional prosecution the receivers have been able to prey on the
dustry with virtual impunity.

In 1892 in their memorial to the Volksraad on gold thefts, the Chamber asked
lat the (Government should be authorised and requested to make regulations for the
tablishment of some public body or institution, or other systematic means or
achinery for detecting thefts and illicit dealings in gold and other precious metals.

In 1893 in their memorial the Chamber asked the Volksraad to make provision
r the appointment of a Government Board at Johannesburg, with a special
itective force attached thereto ; working under regulations best -calculated to
inimise the thefts of gold and illicit dealings therein. The subject was referred to a
fecial commission, which reported as follows: ** The Commission recommends that the

480 Letter of Chamber of Mines.

petition be referred to the Government with instructions (1) to draw up, in eoi^
junction with the Minister of Mines, such regulations as they may consider to be in
the interest of the gold mining industry ; to publish same, and lay them befcn^ the
Volksraad next session ; and (2) to instruct tne Government provisionally to take
such special measures as may be deemed necessary to suppress thefts of gold and
amalgam. The necessity of the above recommendation has appeared to us, not only
from the petition itself, but also from the information given by the Minister of Mines
and members of the Chamber of Minea" After a three days' debate, the Volksraad
resolved to disapprove their commission's report, and refer the petiticm to Govern-
ment

In 1894 the Chamber spent £1,070 in getting evidence in connection with the
thefts of, and illicit dealings in, gold ; and on the 10th April of that year a deputation
went to Pretoria and interviewed the State President and Executive CounciL The
State President stated that he was satisfied that something ought to be done to dimin-
ish thefts of gold, but would not bind himself to establish a special detective
de]partment ; he, however, favourably entertained a proposal for placing a sum on the
estimates for the maintenance of extra police, and asked the Chamber to submit their
proposal in writing. This was done ; the proposal being as follows: (1) The Chamber
engages to provide a sum equal to that set apart by the Government ; (2) the police
referred to snail be employed solely in connection with the detection of thefts oi, and
illicit dealings in, raw gold, amalgam, etc., and in taking measures for the suppression
of these crimes ; (8) the proceeds of all raw gold, amalgam, etc., that may be received
shall, after the d^uction of rewards or bounties to the police, and of the cost of main-
tenance of the force, be passed to credit of account, and such balance as may be to
credit at the close of the year shall be divided equally between the Government and
the Chamber, for the reduction of the respective contributions which may have been
made ; (4) the police referred to to be appointed by and be under the control of the
Government ; details to be arranged later ; (5) this arrangement shall be in force for
one year. The Government replied '* that a sum of £6,000 had been placed on the
estimates for detectives. On confirmation of this item by the Volksraad, the Govern-
ment will be prepared to set aside therefrom a sum of £2,000 as soon as your Chamber
contributes a like amount This combined sum of £4,000 will be applied to the
purposes described by your Chamber, under the express condition stated at the inter-
view relating thereto, of absolute Government control and direction." The Chamber
thereupon resolved that the action of the Executive Committee be confirmed, and thai
the sum of £2,000 be contributed to the maintenance of special detectives, as recom-
mended. In July the Government were informed that the Chamber was prepared to
contribute £2,000, subject to the Government providing a similar amount, for the
purposes detailed in ihe letters exchanged, whenever required to do sa

In February, 1895, the Chamber wrote to the State Attorney with reference to
gold thefts, and asked that the arrangement with the Government for the appointment
of detectives to be engaged solely in the suppression of gold thefts, should be carried
out, the Chamber having undertaken to contribute £2,000. for the purpose ; and in
conclusion said : " The Chamber hopes that you will at the earliest opportunity bring
the matter under the notice of the Government, and point out that strong measures
are needed, not only for the protection of legitimate industry, but also for me removal
of the scandal occasioned by crime being carried on on a large scale with practically
absolute impunity." The receipt of the letter was acknowl^ged. The difiiculty in
connection with carrying out the arrangement was that Government would not
appoint a special gold thefts detective force. In 1895 amendments were asked for in
the gold thefts section of the Gold Law and were adopted by the Volksraad.

Letter of Chamber of Mines. 481

This year the Chamber has in a memorial appealed to the Volksraad to make
provision for the appointment of a Government Board at Johannesburg, with a force
of special detectives under its control, for the suppression of thefts of, and illicit
•dealings in, gold.

It will De noticed that since 1892, the Chamber has been endeavouring to secure
this necessary measure for the protection of the gold mining industry.

BEWAARPLAATSEN MINING RIGHTS.

In 1891 the companies found it necessary to acquire ground at some distance from
the mines for the carrying on of their operations. This they did by taking areas
imder ordinary claim licence, but as this licence gave no title to use of the surface,
bewaarplaatsen licences were also obtained. They were then advised to stop payinc^
•claim licence, as the bewaarplaats licence fully secured their rights, the VolKsraad
having that year passed an amendment to the Gold Law, by which digging under
Ibewaarplaatsen was prohibited ; and at the same time an annexure was attached to the
"Gold Law, containing certain regulations, providing that the holder of a bewaarplaats
licence should have a preferent right to the minerals.

In 1892, at the instance of the Government, the Volksraad again amended the
law, authorising the Government, subject to certain conditions, to grant permission to
mine under bewaarplaatsen and other reserved area& The Cnamber thereupon
endeavoured to get a rider attached to this amendment, giving the holder of the
surface rights a Uiree months' preferent right to .take out mining rights, but did not
succeed. It was currently reported that a group of speculators, cognisant of the
contemplated alteration of the law, had already applied to Government for the mininc^
rights under bewaarplaatsen, and the companies in self-protection also lodged
applications. An announcement was then made that no application sent in prior to
the 1st September would be entertained, and that in dealing with applications the
question of preference would be matter of careful consideration. Both the State
President and the Minister of Mines mve verbal assurances that no injustice to the
mining companies would be permitted. On the 1st September the companies
4M»ordingly filed new applications, but up till now their receipt has not been
acknowledged, nor within our knowledge have they ever been consiaered.

In 1893 the Chamber presented a memorial to the Volksraad on this subject. It
was then referred to a special commission, which recommended certain further
amendments to the law ; one, in accordance with the Chamber's request, providing
that the owner or occupier of bewaarplaatsen should have a preferent right to the
mining rights in question over all other applicants. The Volksraad, however,
decided to defer consideration of these amendments till the next session, and to have
the law with the proposed amendments published as a draft law.

In 1894 the Chamber memorialised the Legislature again, and the Second
Volksraad, after a protracted debate, adopted the draft law virtually as published,
Article 21c providing that " such rights (mining rights) shall be granted to holders of
machine stands, water rights, etc." An effort was made by the Government to induce
that body to reconsider its decision, which, however, only drew forth a resolution not
to alter the law as already passed.

The First Volksraad adopted the law in principle without makinc; any alteration ;

but the bewaarplaatsen articles could not come into operation until the regulations

^controlling mining in these areas had been approved by the Second Volksraad ; and,

as the (Government failed to submit the regulations before the close of the session, the

whole matter was shelved for another year.

482 Letter of Chamber of Mlnei.

In 1895 the Chamber Bent in another memorial The Qold Law had, at the
request of the Chamber, been codified, and in this form it came before the Seconc|.
Volksraad for confirmation. The articles referring to bewaarplaatsen mining rights
were passed with some minor alterations, but the provision that these rights should
be given to the surface-holders, was left unchanged. In the First Volksraad the
Government tried to secure an important amendment, providing that mining, except
by or in the name of the State, should be prohibited under certain areas, and that the
Government shquld be allowed to grant these rights to others when it was not
intended to exercise the State's privilege. The chief alteration suggested was that afiect-
ing the pref erent right of the surface-holder, which had already ^en confirmed by the
Second Volksraad and approved in principle by the First, by substituting a new;
article, stating that '' for the obtaining of these rights, eta, shall be taken into con*
sideration," in place of the existing aHdcle which laid down that *' these rights shall
be granted to, etc" The First Volksraad, however, would not go further tha^
referring the articles back to the Government, with instructions to print the Gold Law
as' amended by the Second Volksraad, and include in it any further amendments,
which they wished to submit to the Legislature. A few days later the draft law.
including the Government's amendments, was printed and laid before the House, and
that body was asked by the State President to depart from the Order and at once to
consider the amendments. This was done, and a two days' debate ensued. In its course
it was pointed out that the articles under discussion had been passed by the Second
Volksraad, on whom the duty of framing the Gold Law had been specially devolved,
and had been confirmed by the First Volksraad. A resolution was finally passed, not
to accept the Government's proposals, but to suspend the articles referring to under-
mining rights for a year, instructing the Government meanwhile to obtain further
information.

In 1896 the Chamber presented a memorial to the First Volksraad, asking them
to confirm the articles as passed by the Second Volksraad, but although no fresh
information was submitted by the Government, the First Volksraad overrode the
decision of the Lower Chamber, and stultified their own action of the two previous
sesvsions by affirming the principle that mining rights under bewaarplaatsen, water
rights, etc., shall be sold by public auction, one-half of the proceeds going to the
Government and the other half to the owners of the farm.

This year the Chamber has again memorialised the Second Volksraad, pointing
out that the mining companies are of opinion that they have been deprived of their
equitable and legal claim to the mining rights under bewaarplaatsen, etc, by the
First Volksraad, and asking that the amended articles as adopted in 1894, may be
restored in the law.

CEMENT DUTY.

In July, 1892) the Chamber was informed that an application had been made to
Government to impose an import duty of £1 per cask on cement. A memorial was
thereupon sent to the State President and members of the Executive Council, pointing
out that, in the opinion of the Chamber, sufficient protection was already afforded to
the local factory by (1) the then existing import duty of 5 per cent. ; (2) the heavy
expense of importation from Europe, which amounted to £2 per cask ; and (3) that the
burden which would be imposed upon the industry by such extra duty would be a
constantly increasing one, as cement was being used in large and steadily growing
quantities ; and a request was made that any attempt to increase the duty should be
opposed. Mr. Jan Meyer, M.F.V., for Witwatersrand, was also asked to offer strenuous

Letter of Chamber of Mines. 483

position to the proposal, and replied that he would do his best. Nevertheless the
ity was raised to £1 per cask.

In 1893, the Chamber presented a memorial to the Volksraad, setting forth that
ment was largely used in mining works and in the erection of buildings generally ;
at the English cost was 5s. 6d. per cask, and the cost of importation 34s. per cask,
d that the tax was unduly burdensome on the mines and the general pubkc, finally
aying that the duty might be reduced to 5 per cent, at which it had stood iill the
evious year. But the memorial to the Volksraad was as fruitless as the one to the
)vernment had been, though at the time the manufacture of cement in the Transvaal
d practically come to a standstill. In 1894, the Chamber again addressed a memorial
the Volksraad, repeating its former ars^uments ; stating further that the cement
story was not working, and asking for the repeal of the £1 duty. This time a
3asure of success was attained, the special duty being reduced to 12s. per cask, at
lich, plus 7 J per cent, ad valorem, it now stands. Last year, according to returns
mished to the Chamber, 22,165 casks of cement were used by 81 companies, and it
evident how imdue a proportion of the total cost is attributaole to the heavy import
ty.

CONCLUSION.

In the foregoing statement, the chief burdens and grievances of the mining
iustry have been briefly touched upon, but others, in some cases of a serious nature,
ve been omitted, from a desire not to produce too lengthy a document. In this
begory we may cite the import duties on food-stufls, which largely increase the cost
white and native labour, and which as far back as 1890 the Chamber tried to ^t
pealed ; and the constant vigilance which it has been absolutely necessary to exercise
prevent articles used in mining from being artificially increased in price through
ivileges to be granted to individuals under concessions, factory contracts, or, as in the
se of cyanide, a State cyanide monopoly ; while the endeavour to interfere with the
igh Court, by means of an amendment to the Patent Law, and so render nugatory
y judgment in favour of the mines which it might give in the cyanide case, was only
f eated by the barest majority. Fortimately, tJie action of the Chamber backed by
e support of a majority in the Legislatiure, was successful in these particular cases ;
t the fact that year after year the mines have been threatened with the laying on of
ditional burdens, in some form or other, constitutes a real and solid grievance.

The appointment of your Commission may, it is to be hoped, oe taken as an
mest that the value of the mining industry as the mainstay of the country is now
preciated, and that it is the intention of the Government and the Legislature to
brd it relief from the intolerable burdens which at present render mining operations
many cases utterly unprofitabla

The memorials which the Chamber has presented to the Volksraad this year are
»ched hereto in the expectation that they will receive your support.

We have the honour to be,

Hon. Sir and Gentlemen,

Tour obedient servants,

JAMES HAY, PreMmt

G. ROULIOT, ]J^frJ>ersof

H. F. STRANGE, f ^^^^^^^

* j Cammutee.

A. R GOLDBING, Secretary.

II.

Memorials of the Witwatersrand Chamber of

Mines to the Volksraad.

Presented 3rd May^ 18y7.

PATENT LAW.

To THE Honourable the Chairman and Members of the Honourable Volksraad i
The HvmhU Memorial of tlte Witwaterarand Chamber of Miinea :

Sheweth: —

That a C!oncept Patent Law has been published in the StoMtacourant, and will be
submitted to your Honourable House to be dealt with.

That a number of amendments to the existing law are contained in the Concept
Law.

That your memorialists respectfully desire to point out that the following pro-
posed amendments will be against the interests of the State, and the mining
mdustry : —

(a) Article 4a provides that the term '* new invention " shall include every

invention that before the aforementioned time was not generally and with
practical result in use in the branches of trade and industry to which the
invention has reference. This portion of the article your memorialists wish
to oppose on the ground that a new invention may be made by a person who
does not desire to derive any financial advantage from his discovery, but

E laces it freely and fully at the disposal of the whole world content with
aving added to the sum of knowledge and benefited mankind. This
invention may, however, not be applied practically to trade and industry ;
and later someone may claim to have arrived independently at it and apply
for a patent The granting of such a patent wotud obviously deprive the
world of the benefit conferred upon it by the disinterested action of the first
inventor, and would allow another person to reap |the fruits which have
voluntarily been foregone by him.

(b) Article 8. — ^The amendment to this article makes it permissive for an applicant

to lodge a description in his own language, in addition to the compulsoiy
translated description in the language of the country. The translations by
sworn translators, especially in the case of specifications involving the use of
technical terms and dealing with complex chemical processes, have, within
the experience of your memorialists, frequently been found to be unin-
telligible, and have proved a great difliculty to persons having an interest in
ascertaining the nature of the invention for which the grantmg of a patent

Memorials of Chamber of Mines. 485

is requested. It is therefore desirable that the applicant should be com-
pelled, as at present, to lodge one description in ms own and one in the
official language.

(c) Article 25a. — ^This article, which it is proposed to insert in the existing law, is, in
the opinion of your memorialists, wrong in principle, and in practice will prove
impracticable. For, in the first instance, it limits the duration of a lawsuit,
a matter which rests with the discretion and jud^ent of the Court before
which the case is brought; and in the second it is retrospective. In a
recent important patent case the time occupied was, through tne necessity of
allowing the appointment of commissions to take evidence in distant parts
of the world, extended far beyond the period mentioned in the above article,
and it is clear that in future actions a similar procedure may have to be
followed. Thus if this article were passed it would involve an encroachment
on the powers and privileges of the High Court, and would probably be the
means o( justice being denied to litigants.

That having stated their objections to certain {|ropo8ed alterations to the lawt
your memorialists would respectfully submit that it is desirable that the provisions
of the 5th paragraph of Article 13 should be ai)plied to applicants as well as to
objectors. That is, that when an applicant is resident abroad, or possesses no fixed
property within the State, an objector shall be entitled to claim that such applicant
shall lod^e security for the payment of costs to the satisfaction of the Commissioner,
and that if such security be not lodged, the Commissioner shall refuse to consider the
application. In support, your memorialists would submit that they have opposed the
granting of many patents in the interest of the State and the inhabitants, and that in
nearly every case they have succeeded. But, though in refusing the applications the
State Attorney has given costs against the applicant, your memorialists have seldom
been able to recover them from persons residing abroad and not having fixed
property within the State. The course pursued by your memorialists proves that
persons constantly apply for patents to which they are not entitled, and in many
cases evade the payment of Uie costs given against them, thus imposing a heavv
burden on your memorialists and others who may take steps to protect the pubbc
against the encroachments of individuala

Your memorialists therefore pray that for the foregoing reasons your Honourable
House will reject the proposed amendments : —

Article 4a. — So far as remrds the second portion of the first paragraph.

Article 8. — Begiuxling the substitution of permissive for compulsory lodging of a
description in the language of the applicant.

Article 25a. — In its entirety : and will amend Article 13 in the manner asked for in
the memorial.
And your memorialists will ever pray.

GOLD THEFTS.

To THE Honourable the Chairman and Members of the Honourable Volksraad .

The Hwnible Memorial of the Witvxiterarand Chamber of Mines :

Sheweth : —

That the mining companies of the Witwatersrand Qoldfields sustain very heavy
loss through thefts of amalgam and other metallic and chemical combinations of gold.

486 JWLeniDrlalA of Chamber of Mines*

That from cases which have occasionally come before the Courts and from other
infofmation which from time to time has been laid before your memorialists, it has
been clearly shown that this plundering of the mining industry is carried on in an
organised and systematic manner, and that a combination exists between dishonest
employees engaged in and about the works of the companies and the illicit buyers
outside, who, for the most part, carry on a legitimate business, but use it mainly as a
cover for their nefarious transactions.

That the mining companies have in the past, and do still, exercise all possible
vigilance to prevent uiese thefts, but, so far, have been, and still are, unable wholly to
do so, owing to the temptations placed in the way of their employees by the illicit
buyera

That there is reason to believe that with the expansion of the mining industry
thefts and illicit purchases of gold have increased in volume.

That the provisions of the Gold Law and the efforts of the detective force have
proved insufficient, either for suppressing these crimes or, to any appreciable extent,
for bringing the criminals to justice.

That experience has demonstrated that the ordinaiy detective force is not
adequate for the due protection of the mining companies, but that it is necessary that
special means should be provided for the detection of the thieves and receivers and
for bringing them to justice.

Wherefore your memorialists humbly pray your Honourable House to make
provision for the appointment of a Government Board at Johannesburg, with a force
of special detectives under its direct control, working under regulations the best
calculated to suppress the crimes referred to in this memoriflj, and so afford the
industry efficient protection from the criminal classes now preying on it.

And your memorialists will ever pray.

DYNAMITE.

To THE Honourable the Chaibman and Members of the Honourable Volksraad :

The Humble Memorial of the Witwaterarand Chamber of Mines :

Sheweth : —

That in the report of the Dynamite Commission appointed by your Honourable
House last session, it is vnter alia pointed out :-^

1. That the agent has failed to carry out his contract with the Government to
establish factories adequate for the manufacture of explosives in accordance with the
requirements of the country within the time fixed, and that even within the further
2J years which the Government have allowed him, he will still be unable to do sa

2. That irrespective of the profit on explosives made at the factory, a profit of £2
per case is made on explosives imported at the cost of the State, of which the agent
takes 35s. and the Government 5s. per case.

3. That during the four years 1897 to 1900 inclusive, it is estimated that at least
430,000 cases of explosives will have to be imported, which, if imported by the State
direct would benefit the Treasury to the extent of £860,000, and, if dealt with as at
present would give the State only £107,500, a difference to the detriment of the State
of £752,500.

4. That there is no prospect that the production of explosives will be independent
of the importation of some oi the raw materials.

Memorials of Chamber of Mines'. 487

That from the foregoing it is perfectly clear that the State monopoly has not
resulted in rendering the Republic independent of the importation of raw niaterials,
Qr even of manufactured explosives, ana that there is no prospect, at anyrate with
regard to raw materials, that it ever will do so ; and that moreover while the State
finds the money for the importation of explosives the agent takes most of the profit,
80 that the mining industry is heavily burdened in order not that the State but that
the agent shall benefit.

That Nobel's offered in 1893 to supply dynamite N*o. 1 in Johannesburg, down to
40a per case free of duty, and if 5s. per case duty be added, which is the amount the
agent pays to the Government, the cost would still be only 45s. per case ; while at
present your memorialists are paying the a^ent 85s. per case.

That the Chamber has good grounds lor stating that dynamite can to-day be
delivered at the price quoted above ; that your memorialists have in their possession
reliable information to that effect, and are prepared to place this information at the
disposal of the Government, and in other respects to give all the assistance in their
power.

That the Volksraad CJommission state in their report that, according to returns
given them by the Government Agent, the present demand for the whole country is
zOOfiOO cases per annum.

That the difference between the price paid to the agent and that at which
dynamite can be imported being 45s. per case, and the consumption for the year
200,000 cases, the burden laid on the mines for the current year in respect of dynamite
amounts to £450,000, of which the Government will receive only £50,000, being at
the rate of 5a per case.

That, under the circumstances, viz. : that the agent has not fulfilled the terms of
his contract ; that the State monopoly has failed, and must necessarily fail, to realise
the aims for which it was established; and that the high charge for dynamite imposes
a heavy burden on the mining industry, it is desirable, in the best interests of the
<50untry, that the industry shall De relieved from any longer paying excessive prices
for e^losivea

Wherefore your memorialists will ever pray that your Honourable House may be
pleased to take such steps as will relieve the mining industry from the burden which
the present high prices of dynamite impose on it

And your memorialists will ever pray.

LIQUOR LAW.

to the honoxthable the chairman and members of the honourable
Volksraad :

The Hv/mhle Memorial of the Witwatersrand Chamber of Mines :

Sheweth : —

That the provision made in Law 17 of 1896, absolutely prohibiting the sale or
barter of wine, strong drinks, or malt liquor to any coloured person is calculated to
greatly and permanently benefit the mining industry, and to decrease accidents and
crime among the natives employed at the minea

That when the law came into force at the beginning of the year, there was a
marked decrease of crime, and an almost total disappearance of drunkenness among
the mine natives, and your memoriflJists received most encouraging reports of the

488 Memorials of Chamber of Mines.

improvement in the efficiency of native labour, and of the greater quiet and orderlines
prevailing alon^ the line of the main reef.

That latteny, however, there has been a revival of drunkenness among the natives
at some of the mines, particularly in the immediate neighbourhood of Johannesburg.

That this is due to the illicit sellers, who make large profits by supplying the
natives with liquor in defiance of the law, and can only be remedied by the exercise of
greater vigilance and activity on the part of the police.

That notwithstanding this revival of drunkenness at some of the mines, the
prohibition of the sale of liquor to natives has proved of real and substantial benefit
to the mining industry as a whole.

That Article 16 is eaually necessary for the protection of the mining industry,
and for the prevention of arunkenness among the natives.

Wherefore your memorialists pray your Honourable House to uphold Article 5,
of Law 17, of 1896, prohibiting the sale or barter of strong liquor to natives, and
Article 16 of the same Law, which prohibits the granting cS liauor licences within
mining areas, and to afibrd such relief with regard to the illicit traae in liquor as your
Honourable House may deem fit, and for this purpose to provide for a Uovemment
Board at Johannesburg, with a special force of aetectives under its control, working
under regulations the test calculated to attain the end desired.

Ana your memorialists will ever pray.

DISPOSAL OF TAILINGS AND SLIMES.

To THB HONOUBABLE THE CHAIRMAN AND MSBfBERS OF THE HONOUBABLK
VOLKSBAAD :

Tfce Humble Memorial of the Witvxitersrcmd Chamber of Mines :

Sheweth : —

That your Honourable House postponed the operation of Article 10 of the Mining
Regulations for one year.

That your memorialists would now respectfully point out that the adoption of
this article would cause great inconvenience and loss to mining companies, and would
interfere with the operations of the mining industry.

That for purposes of convenience or trade, a portion of the township of Johannes-
burg, and the villages along the line of main reei, have been built in dose proximity
to the mining companies, and that such difficulty as has arisen is attributable, not to
the mining companies, but to those persons who have built in the immediate vidnify
of the mines.

That the mining companies are, however, desirous of preventing, if possible, or,
at least, minimising the inconvenience with which Article 10 af<»resaid is mtended t(>
deal.

Wherefore your memorialists pray your Honourable House to again postpone th^
operation of this article until the matter has been fully considered, and means founA,
if possible, for overcoming the difficulty without unduly hampering mining woik.

And your memorialists will ever pray.

Mettiorials of Chamber of Mines. 489

m I — ^ - - ^ - - _-_-_■ ^ _ _ . _ I

PASS LAW.

To THS Honourable the Chairman and Members of the Honourable

VOLKSRAAD :

The HwnMe MeToorial of the Witwatererand Chamber of Mvnee :

Sheweth : —

That great difficulties have been experienced in connection with the working of
the Pass Law, Law 31, 1896, and considerable trouble, inconvenience, and loss of
money have been caused to the mining companies thereby.

That the regulations contained in this law were passed with the twofold object :
— (1). Of establidbing thorough Qoverhmental control over the natives employed in the
nmung, districts. (2) Of protecting the companies as far as possible against their
native labourers desertmg.

That neither of these objects can be said to have been attained ; and, in especial,
desertions constantly occur without employers being able to obtain redress, to the
very serious loss of the mining companies which pay large sums to have natives
brought to these fields.

That this is chiefly to be attributed to the inefficient administration of the law.

That while an ample revenue for all administrative and other purposes in con-
nection with this law is provided by a Pass Tax of two shillings per month, levied on
each native employed in a proclaimed district, the staff of officials entrusted with the
carrying out oi the law is inadequate, and, moreover, there is no special police force
for the service of the department for tracing and following up deserters.

That the facilities afforded for the taking out of passes and badges are insuffi-
cient, and the arrangements for dealing with cases under the Pass Regulations cause
i&inecessary loss of time and money to the mining companies.

That as a consequence of these shortcomings, while the companies are harassed
&&d their work is impeded by such measures as the inspection of passes and badges,
ftnd by their officials having to attend Courts held at a considerable distance from the
iiuzies, they do not receive the protection and assistance contemplated by the regula-
^tions, but endure the inconvenience without deriving the bene.fit expected from the
lie^^ law.

Wherefore your memorialists pray : —

1. That the three districts of the Witwatersrand may be placed under the control

of a chief administrator acting under a Qovemment Board, of which he shall
be a member, and working under regulations the best calculated to secure
the proper carrying out of the law, and who shall have authority over the
Pass officials in charge of the different districts and receive periodical reports
from them, so that there may be effective supervision and united action.

2. That the staff of the Pass Department may bie increased sufficiently to enable

it to successfully cope with the work devolving on it.

8. That a special body of police may be appointed to assist the Pass Department
in carryinfif out and enforcing the regulation&

1 Thjt X««» for tbe i™,'!.t ^^ l»dg« ,n.y b. e,«««i J«g
the mines.

6. That special judicial commissioners may be appointed at convenient places to
deal with offenders under the Pass Law ; so that tiie great loss of time and
money involved in the officials and the native employees of the companies
having to attend a Court at a great distance from the mines, and in which
delays are frequent owing to pressure of other work, may be avoided:

? 2

490 Memorials of Chamber of Mines.

6. That a new article may be.infierted in the law providing that natives arrested,
after having left a proclaimed field, for not having a travelling pass, shall be
taken back to the district from which they came, so that tney may be
punished by the authorities of that district, and, if shown to have deserted
from a company or other employer, after having undergone the punishment,
be returned to such company or other employer to complete their term of
contract.

And your memorialists will ever pray.

MINING UNDER BEWAARPLAATSEN, ETC.

To THE Honourable the Chairman and Members of the Honourable

VOLKSRAAD :

The Humble Mefmorial of the Witwatererand Chamber of Mines :

Sheweth : —

That last year the Honourable First Volksraad resolved to maintain the prohibi-
tive provisions of Article 121 of the Gold Law of 1893, till such time as the First
Volksraad and the Government are satisfied of the necessity of removing the prohibi-
tion, and that in such case, subject to certain conditions, the undermining rights shall
be sold by public auction to the highest bidder.

That your memorialists are of opinion that they have sustained injury by this
decision ; for in the annexure to the Uold Law of 1891, concerning brickmakers, fta»
the principle is laid down that the holder of a bewaarplaats or (melling-site licence
shall, in the event of the presence of gold or silver or one of the precious metals or
stones being suspected or discovered on the ground covered by such licence, enjoy the
preference to obtain, in addition to the ordinary licence, a licence to prospect or dir
on such ground ; and so far back as 1892 the mining companies of the WitwatersrantC
in conformity with the provisions of the then-existm£^ law, made formal application
for the mining rights under bewaarplaatsen, water rights, ise.

That the Honourable Second Volksraad in its amendments to the Gold Law,
provided that the holder or possessor, under the Gold Law, of bona fide stands on
which buildings are erected, machine stands, and water rights, shall be preferred
before all others in the grant of the undermining rights in respect of such building
stands, machine stands, and water rights.

That the mining companies wmch have developed the reefs of the Witwaters-
rand, and thereby demonstrated the value of the ground lyins below the localities
mentioned, are of opinion they have been deprived of their eqmtable rights, and also
of the legal rights conferred under the annexure to the Gold Law of 1891, above
referred to ; whereby areas which, through Uiem or their agency, might be profitably
worked are kept unproductive.

Wherefore your memorialists pray your Honourable House to recommend Utft
the prohibitive provision shall not oe enforced in accordance with the amendm^t of
last year, but that the articles referring to undermining rights as published in Law
19 of 1896, shall be restored with the addition in Article 124 of the word ''bewaa^
plaateen,*" after the words " machine stands."

And your memorialists will ever pray.

MetnoHak tff Chattiber of Mines. 491

ACQUISITION OF THE RAILWAYS BY THE STATE.

To THE Honourable the Chairman and Members of the Honourable

VOLKSRAAD:

The HwmhU Memorial of the Witwaterarand Chamber of Mvnea :

Sheweth : —

That the Netherlands South African Railway Company charges exorbitant rat^s
for the carriage of goods — urates far in excess of those cnarged in the Free State and
the neighbouring colonies, where there is State ownership of railways^ and where, too,
greater travelling facilities are offered to the public in connection with special events,
such as agricultural shows, etc.

That while the Cape Colony and the Colony of Natal make on their working
system about £1 ,500 per mile, the Netherlands South African Railway makes £3,29 1
per mile.

That these heavy charges hinder the development of industries and commerce
within the Republic and impose a grievous burden on the whole country.

That unoer the present system no material change can be expected, for the
Netherlands Railway Company is a purely commercial enterprise, and a body of share-
holders possessed oi powers such as those conferred by the Railway Concession will
not be content with a fair return upon their investment, but will naturally seek to
obtain the maximum possible profit, irrespective of the mischief to the general weal
caused by such a policy.

That under tnese conditions it is desirable in the best interests of the State and
its inhabitants that the railway system should be owned and worked by the State, so
that it may be made to conduce to the furtherance of the progress and prosperity of
the country, and afford cheap means of travelling for the peopla

That provision has been made for the expropriation of the railways by the State.

That one of the terms of expropriation, so far as known to your memorialists,
being a sum equal to twenty times the average dividends declared during the three
years preceding expropriation, it is evident, owing to the increased profits which
will be earned from year to year, that the longer the delay in acquiring the railways,
the greater will be the amount to be paid to the Netherlands South African Railway
Company.

Wherefore your memorialists respectfully pray your Honourable House to take
cmch measures as you may deem advisable for the immediate acquisition by the State
of the railways owned by the Netherlands South African Railway Company.

And your memorialists will ever pray.

ROADS TO THE MINES.

To THE Honourable the Chairman and Members of the Honourable

VOLKSRAAD :

The Hwmhle Memorial of the Witwaterarand Charifiber of Mines :

Sheweth : —

That great inconvenience and loss are caused to the mining companies by the bad
«tate of the roads leading to the mine&

492

Memorials of Chamber of Mines.

That the traffic to the mines is considerable.

lliat it is desirable that every possible facility should be afforded for the conduct
of such traffic.

That kurveyors and other persons who undertake the delivery ol goods to tho
mines are liable to sustain bodily injury and to have their draught animals hurt and
their wagons damaged through accidents which, from the dangerous condition of Uie
roads, can at times nardly be avoided.

Wherefore your memorialists pray that your Honourable House may provide for
the construction of a new road to the mines, or afford such other relief aa you may
deem fit.

And your memoriflJists will ever pray.

III.

Report of Witwatersrand Chamber of Mines

Committee on Railways.

To THE ExECunvE CoMmrrEE of the Chahbeb of Mines :

The committee appointed to investifi;ate the relative positions of the varioos
railways in South Amca has now completed its work. The following statements
have been prepared with care, and accurately reflect the general disadvantages under
which the industry suffers at the hands of the railway& The spirit of the Qovem-
ment to assist the mining industry is interpreted by the aamission of all gold
mining machinery and materials used for gold mining at 1| per cent of the value.
This policy, however, is defeated by the railway carria^ rates exacted over the
Netherlanos Railway lines for conveyance, the rates over wnich section are considered
to be phenomenally high.

Tne comparisons per ton per mile will sufficiently demonstfate this so far as
South Africa is concerned ; but nowhere in the world is such a highly remunerative
tariff permitted. The rates applied to the several divisions, more particularly from
the Cape Colony, for the section Vereeniging-Johannesburg-Pretoria, etc., appear to
be in conflict with the amended concession panted to the iNetherlands Compcuiy by
the Government, and confirmed by resolution of the Honourable Volksraad on the
26th June, 1890.

An effort has been made to ascertain whether any further amendments or
alterations have been accorded to the company which would justify it in levying the
rates at present charged, but without succes& It is presumed that no authority is
competent to amend the provisions of the concession unless the alterations or additions
suggested are ratified by the Volksraad, which does not appear to have been done.
The following are the clauses under the concession referred to which govern the
tariff, namely :—

Part 4. Tariffs for Conveyance —

Article 17. — The concessionary may demand payment to be fixed by him for the

conveyance of persons, goods, cattle, etc., ana also for the unloading, loading,

delivery, and all similar services for wagon hire, etc

The tariff for the conveyance of persons and goods shall, however, without the

previous consent of the Government, never exceed-*-

For persons, first class, threepence per mile (l|d. per kUometre) ; lowest class,

twopence per mile (l^d. per kilometre).
For ordinary freight goods, sixpence per ton per mile (3|d. per kilometre), with
a minimum of £1 per consignments

494 Report of Chamber Railways Committee.

For rough goods (coal, ores of not geater value than £45 ^r ton, stones, un-
sawn wood, etc., in quantities of at least five tons), threepence per ton per
mile (l|d. per kilometre), with a minimum of £1 per consignment
Article 18. — To all •tariffs, and amendments thereto, the necessary publicity shall
be given before they are carried into effect, and no tariff shall be amended
before it shall have been in operation at least three months.
Article 19. — The concessionary shall be bound to convey, without distinction and
without partiality, whatever shall be offered for conveyance, subject to the
general exceptions provided for.

The following figures, per ton per mile, illustrate what each railway system
derives upgn the through traffic to Johannesburg, namely : —

Normal. Intermediate. Rough.

1st and 2nd Class 3rd Class

C. O. R. C. G. R.

Per ton per mile. Per ton per mile. Per ton per mile.

d. d. d.

Cape ... ... ... 2-34 2 1*3

Orange Free State ... ... 234 2 1-3

Natal 304 304 194

Portuguese... ... ... 407 353 244

Netherlands, via Cape ... 77 7*7 77

Natal ... 506 382 3-2ft

„ Delagoa ... 427 3-69 254
These rates include terminals and cartage.

ft »

From this table it will be noticed that, of all the railway systems, the Nether-
lands Company secure the highest rates out of the traffic. The only phymcaX
difficulties encountered bv the company in the haulage of its traffic on the Easterns
line is between Waterval Onder and Waterval Boven.

The connections from the Cape and Natal are practically flat tracts, and thereby
place great advantages within the power of the company for economical exploitation.

The Cape and Natal convey the goods over the longest mileage ana vexying
grades, and, naturally these railways should have a reasonably higher rate, as
compared with the Netherlands, to cotnpenbate for the additional expense involved in
working.

So far as can be ascertained, the company, in iixing the rates from Delagoft
Bay and Durban, have taken as the basis the rate from East London, and, after
allowing the Portuguese and the Natal Railways their respective local rates, the
Netherlands Company appear to acquire the whole balance. An extraordinary dis-
similarity appears to exist in the principle of the proportional receipts due to each
railway. The Portuguese section, from Lourenco Marques to the frontier, is 55 miles,
as compared with 52 miles on the Cape side from Mid-Vaal River to Johannesburg,
whereas, from the table annexed hereto, it will be observed that the Netherlands
Company only pay the Portuguese at the rate of 4*07d. per ton per mile for normal
ffoods, 3'53d. for intermediate, and 2*44 for rough goods, while for the 52 mile section
from Mid-Vaal River to Johannesburg they demand, for all classes of traffic, 7*7d. per
ton per mile. If this is done to secure to the company profit on account of the
shorter mileage by the Cape, then it would appecu: that the Portuguese are entitled,
on that principle, to the largest amount of revenue per tpn per mile, as their line ifl
the shortest, and they secure the smallest aggregate receipts. The table further
reveals the existence of a sliding scale of the most unique character, namely : —

Report of Chamber Railways Committee. 495

On traffic from Lourenco Marques to Komatie Poort, a distance of 58 miles, the
Netherlands allow the Portuguese Is. 7d. per 100 lbs., but gradually,
according to mileage, the apportionment of the Portuguese Railway
diminishes, until on Johannesburg traffic they only receive ll*2d. for normal
goods, 9*7d. for intermediate, and 6*7d. for rough * goods for the whole
distance, as compared with the all-round rate of Is. 8d. per 100 Iba over the
52 mile section, Mid-Vaal River to Johannesburg, by the Cape.
It has been necessary to examine these figures closely in order to appreciate the
fact that the Netherlands are following a principle which cannot be equitably sub-
stantiated, and which, in business phraseology, is nothing more than appropriating the
unwarrantable balances on the rates by each route, based on the longest mileage
rate, namely, from East London to Mid-Vaal River.

The argument of the committee is not that the Cape or Natal are taxed too
much, and the Portuguese too little, but that the basis of rates is not just to the
industry, which already, in other ways, is too heavily burdened. After full and
mature consideration, we coine to the conclusion that the Netherlands Company has
acted beyond its province in regard to rates, and that measures isihould be taken to
remedy the unequal and preposterous charges which are generally being levied on
over-sea goods destined to Johannesburg, which is the chief centre oi consumption.

If a comparison is drawn between the Netherlands Company's through and local
rates, the following result is obtained : —

Netherlands Company's Local Rates:

Normal. Intermediate. Rough.
Ist and 2nd class, Srd class, *

C. G. R. C. G. R.

Per ton per mile. Per ton per mile. Per ton permile.
d. d. d«

Vereeniging to Johannesburg ... 6*6 5*1 3*1

Pretoria to Komatie Poort ... ... 6*1 4*6 3

Elandsfontein to Yolksrust ... ... 6*3 4*7 3

This comparison conclusively determines two principles : —

(1) That the local rate is considerably less, particularly in the case of rough

goods, than the through rate from the Cape and Orange Free State, but
more than the rates applied on goods from either Natal or Delagoa Bay ;
and

(2) That the local rates per ton per mile are practically based upon the same

mileage principle, in accordance with Article 17 of the concession, which

requires that the same rate must operate throughout the railways, and that

no partiality shall be accorded. The Netherlands apply the differential rates

only on over-sea goods imported through the respective frontier stations.

It is desirable, in considering these differential thiough rates which are applied

to over-sea traffic, as compared with the uniform local rate in operation throughout

aU lines within the Transvaal, to refer to Article 13 of the London Convention* of

1884, which reads : —

Elxcept in pursuance of any treaty or engagement maxle, as provided in Article 4
of this convention, no other or higher duties sliall be imposed on the
importation into the South African BepubUc on any article coming from any
part of Her Majesty's dominions than are or may be imposed on the like
article coming from any other place or country, nor will any prohibition be
maintained or imposed on the unportation into the South African Republic
of any article commg from any part of Eter Majesty's dominions which shall

Report of Chamber Railways Committee.

not equally extend to the like article coming from any other place or
country. And in like manner the same terms shall be given to any article
coming to Great Britain from the South African Republic as to the like
article coming from any other place or country.
These provisions £) not preclude the consideration of special arrangements as to
import duties and commercial relations between the South African Republic
and any of Her Majesty's Colonies or Possessions.

COAL TRAFFIC.

To draw a comparison of the rates for coal traffic by the various lines will also
prove of interest, namely : —

Per ton per imle.

Cape (coastwards) ... ... ... ... ... Jd.

Cape (inland) ... ... ... ... ... Id.

Orange Free State ... ... ... ... ... Jd.

Natal ... ... ... ... ... ... |d. (2,240 lbs.)

Netherlands sliding milea^ scale (maximum), 3d. per ton per mile ; (minimum,)

0*686d. per ton per mile.
Netherlands to Delagoa Bay, 0'54d.
These rates are station to station.

The above comparison indicates that the Netherlands Company secure the largest
revenue from coal as compared with any other railway system. The rate on the
Rand Tram Varies from 2*92d. to 2*08d. per ton per mile, while from the coal stations
on the Eastern line to Johannesburg the rates per ton per mile vary from l*56d. down
to Id., according to distance. This sliding scale for coal continues to diminish
according to distance, until the minimum, '686d. per ton per mile, is arrived at. A
special rate of *54d. per ton per mile is, however, extended for the conveyance of coal
traffic from the Eastern coal stations to Delagoa Bay.

As the coal measures of Brakpan and Springs are adjacent to the gold mines ,

which are fed principally from these stations, the scale, which begins at the rougl m

goods rate of 3d. per ton per mile, and diminishes according to distance, operate^^
heavily against the mines. The Rand Tram presents no difficulties for exploitation^.,
and the close proximity of the mines to Johannesburg is so much in the interests (^£
the company, as the short distance enables the company to secure a comparatively
handsome revenue with a minimum number of trucks, the line being well adapted for
the expeditious conveyance and delivery of this traffic, and greater receipts per truck
are consequently obtained. It is always a source of regret that this coal traffic is no^
conveyed in bulk, which would thereby reduce the first cost to the minea The
graduated scale operates, therefore, in the opinion of the committee, detrimentally to
the interests and progress of the mines, upon the development of which the prosperiftf
of the railwav so much depend& The axlditional expenditure involved in wortdog
the deep-level properties necessitates the strictest 'mme economy, and we think the
time has arrived when a further reduction on coal should be obtained. The cost of
coal and its conveyance have a large influence in preventing the development of low-
grade minea It is considered that a rate of |d. per ton per mile would amply
compensate the company for its service ; the increase in volume of the coal tnfic
conveyed per month at the reduced rate of ^d. per ton per mile would still maintaio
the Rand Tram as the premier earning section of the company.

A further comparison of the rates for agricultural pro(£ice in through traffic t
Johannesburg charged over the various railways is given.

Report of Chamber Railwuys Committee* 497

n 99

AGRICULTURAL PRODUCE-SOUTH AFRICAN.

<7ape, for 23 miles... ... ..• ... Jd. per ton per mile, plus terminala

Orange Free State, for 23 miles ... ... fd.

NatiJ, for 13 miles ... ... ... Ifd.

Portuguese ... ... ... ... 2-2d.

Netherlands, via Cape and Orange Free State... 3*ld.

Netherlands, tna Natal ... ... ... 8*26d.

Netherlands, via Delagoa Bay ... ... 2*3d.

It will be observed that while every encouragement is given on all the railways
for the transport of South African produce, the Netherlands again derive the greatest
benefit

GENERAL RAILWAY STATISTICS.

We have considered the figures stated in the railway reports for 1895, and
.generally have based our conclusions upon the results of that year. No information is
obtainable for 1896.

Particular attention is directed to the earnings of the various railways per open
mile, viz. : —

Cape ... ... ... ... £1,504 14 0

Natal ... ... ... ... 1,312 19 0

Netherlands... ... ... ... 3,291 0 0

The earnings per train mile are : —

n d.

v^ape ... ... ... ... ... o4

SS BtiAi ... ... ... ... ... ill 'up

Netherlands ... ... ... ... 14 7'36

It would be impossible to pass these results without comment. The Cape and
Natal RailwajTs earn roughly £1,600 per open mile, based upon rates which are
generally considered to be fau-ly reasonable, while the Netherlands Railway derives
£3,291 per open mile, or over 100 per cent, more than the leading railways in South
Africa. No one, who is acquainted with the natural advantages enjoyed by the
company for economical exploitation, will be able to justify the extraordinary profits
obtained, as compared with the other and older railways. The advantages and
facilities afforded to the Netherlands Company should enable them to work at a much
lower cost than any other line. For instance, the Cape and Natal Railways not only
have to encounter extreme physical difficulties (and in each case the railways raise the
traffic to an altitude of 3,988 feet and 5,433 feet respectively, after which the
Netherlands Railway pursues practically, a level course), but the coal for working has
to be obtained from private sourcea The Netherlq.nds Company enjoy the advantage
of their own coal mme at the Springs. The Cape and Natal Railways obtain their
• coal supplies from private minea In the former case the fuel has k> be conveyed
over the Free State lines at a certain cost per ton before it can be secured by the
•Colony for ultimate distribution to its various stationa The only comparison,
therefore, lies between the Cape and the Netherlanda In the first place, several of
the Cape lines are non-paying. The Cape rate is the lowest ; the mileage is the
longest, and consequently the working expenses heavy. The Cape open mileage is
recorded as 2,263 miles, as compared with the Netherlands 471 miles in 1895. The
latter railway enjoys a highly remunerative tariff, and the advantage of all its lines
being concentrated and payable. The tonnage conveyed during the jrear mentioned
is the last and best argument which can be employed to convince anyone, who will
-devote himself to a careful study of the facta The Cape tonnage on goods conveyed

498 Report of Chamber Railways Committee

is recorded at 1,168,614 tons of all cleooriptionB of traffic, on which the Cape
Government obtains £1,504 14s. per open mile. The Netherlands goods tonnage for
the same year is set down as 1,121,226 tons, "rather lees than the Cape, but the
company's earnings are £3,291 per open mile. In each case, it should be noted, both
railways practically convey the same tonnage, but the Netherlands receipts exceed
those of the Cape by 100 per cent Further, to* work 2,263 miles of line the Cape
expends 471 per cent, of its total earnings ; Natal 52*94 per cent, for 401 miles, and
the Netherlands 4849 per cent, for 471 milea A consioeration of the expenditure
per cent, of the earnings, taking the Cape mileage, tonnage, coal supply, grades, etc.>
will surely prove that the railway best adapt^ to prwiuce the most economical
results, is the Netherlands, yet the working expenses exceed those of the Cape hy
1*50 per cent. The profit on coal traffic conveyed over the Rand Tram would cover
the whole expenses of the company.

Having followed the interesting results of the working expenses of each railway,,
the committee would be guilty of a serious omission were not prominent attention
directed to one more table. There is no Natal proportion for 1895, as the Natal
railway was not open, but in due time the attention of the Chamber will be directed
to the figures for 1896.

MILEAGES.

Capetown to Mid-Orange River (Nerval's Pont) ... 629 milea
Port Elizabeth „ „ „ ... 329 „

East London „ „ (Bethulie) ... . • . 286 „

Mid-Orange River (Nerval's Pont) to Mid-Vaal River 333 „

„ w (Bethulie) ... ... ... 329 „

Mid-Vaal River to Johannesburg ... 52 „

Durban to Natal Border. . . ... ... ... 309 „

Natal Border to Johannesburg ... ... ... 178 „

Ressano Garcia to Johannesburg .. ... ... 341 „

Delagoa Bay to Ressano Garcia (Portuguese Railway) 66 „

The Cape General Managers' report for 1896 indicates that the gross receipts on
their traffic (all descriptions) to and from the Transvaal amount to : —
Proportion to (5ape Railways ... ... ... £1,416,307

Proportion to Netherlands Railways ... ... 458,256

Total ... ... £1,874,563

which includes passenger receipts.

This table demonstrates that of the total revenue derived, the Cape secures 75*56
per cent, and* the Netherlands 24*44 per cent. As the Johannesburg trade predomin-
ates, and the passenger receipts only represent a little over one-third of the goods
trade, it will be a fair conclusion to take the mean distance to that point from Port
Elizabeth and East London, namely : —

Port Elizabeth to Mid-Vaal River ... ... ... 662 miles

East London to Mid-Vaal River ... ... ... 615 „

2)1277

Mean distance ... ... ... ... ... 638*5 miles

Mid-Vaal to Johannesburg ... ... ... 52 „

or the Cape 92*5 per cent, of the total mean distance as compared with the Nether-
lands 7*5 per cent.

Report of Chamber Railways Committee. 499>

A further illustration in support of this statement is that for 1896, the goods
tonnage exchanged between the Cape and the Netherlands Railway Company was
240,063 tons, or equal to a goods revenue of £388,323, or an average of £1 12a 4d. per
ton. The Johannesburg through Netherlands rate, Mid-Vaal River to Eazeme is
33a 4d. per ton.

The average cost per mile open on the respective railways is :—

£ 8. d.
1895. Cape ... ... ... ... ... 9,056 9 1

Natal . . ... ... ... ... 15,254 17 9

„ Netherlands ... ... ... ... 15,369 6 10

1897. Orange Free State.... ... ... ... 7,479 4 6

The cost " per ton mile " cannot be determined from the statistics available, as-
the division of the train miles, passenger, mixed, and goods, are not distinguished ;:
this wo old probably have been the best comparative table.

1896. — The average aggregate Netherlands earnings for 1896 may be calculated
as equal to £3,250,0(W, of which 50 per cent may be expected to cover working
expenses, leaving a profit of £1,625,000 for division amongst the various interesta

It should not be overlooked that a considerable profit in this case accrues to the
Government, but this profit does not anything like represent what could be obtained
if the railways were exploited under Government control and supervision. The
figures are based upon low averages ; it is quite likely the revenue will exceed the
amount named. During this year the Natal and Potchefstroom extensions have been
opened for traflSic.

The Cape Government Railway results for 1896 are : —

Open mileage ... ... ... ... ... 2,253 miles

Capital ... ... ... ... ... £21,193,417

Cost per mile open ... ... ... ... £9,406 15a

Net earnings per cent, to capital, exclusive of Orange

Free State share ••• ... ... ... £8 19a 7d.

GENERAL MATTERS.

Apart altogether from the accepted and ^neral manner under which every form
of operation in the Transvaal is handicapped by exorbitant railway rates, monopolies
and concessions, there are some disabilities to which attention is directed. Several of
the principal firms have therefore been interviewed; there is entire unanimity of
opinion in regard to the complainta

PASSENGER FINES.

The system of permitting guards and other railway officials to fine passengers
who may, unfortunately, be necessitated to join a train without having an opportunity
of securing tickets, is generally condemned as an arbitrary proceeding. The imposi-
tion of fines ia a matter which should only come within the power of the Judiciary,
by whom punishment is administered. The company practically places a premium
upon fraud, as all that is at stake is a fine of £1 in the event of the delinquent being
discovered. The system, however, is a distinct hardship upon those who have no
wish to defraud the company.

PASSENGER REDUCTIONS FOR SPECIAL EVENTS.

The periodical reductions granted by the company are not sufficiently liberal
As an instance, all Governments in South Africa afford better terms to visitors to

500 Report df Chamber Railways Committee.

the Johannesburg Agrienltnnd Show than the Netherlands Company. The secretary
of the show announces that the passenger facilities over the railways are : —

Natal .. ... ... Single fare for double journey.

Orange Free State ... ... Half single fare for double journey.

DEMURRAGK

Specific details have been received of instances where demurrage has been
chained on trucks which have arrived at Elandsfontein and other stations in the
vicinity, but were detained pending the issue of Customs permits, which in each case had
been duly applied for — in some instances before the trucks had actually arrived. The
demurrage tor detention to these trucks awaiting permits is demanded by the
Netherlands Company from the consignee. No period of time is allowed during
which goods must be taken delivery of, the charge having efifect from the moment the
truck reaches the siding. Demuirage has not only to be paid to the owning railway,
but 100 per cent., in culdition, is demanded by the Netnerlands Company as their
proportion, for which no service is rendered.

SIGNATURES FOR CONSIGNMENTS.

With the extension of the mines, Johannesbur^-Kazeme Station has ceased to be
the point of distribution for many of the more distant mines. Consignments for-
warded to sidings at which no stationmaster is appointed must be signed for before
delivery is offered, no opportunity being given the consignees to ch^k or otherwise
examine the goods prior to signing for them. Any damage or loss afterwards ascer-
tained is repudiated by the company on the grounds of a clean receipt If signatures
are not given as demanded, the goods are taken forward to the next station and there
ofif-loaded, additional charges of every description being incurred, as well as the
expenses of delivery back to the point to which the consignment was originally
destined.

SHUNTING AND SIDING CHARGES.

Many of the larger mining companies have their own sidings, or make use of:
sidings provided by the company, but m each case a heavy charge is demanded by th<
company for shunting, &c., which is considered to be exorbitant.

COMPENSATION FOR LOSS OR DAMAGE.

In the matter of claims, numerous instances have come under notice where com^
signees have been compelled to accept payment on the basis of 1& per lb. weight L:a
full settlement of their claims for short delivery and damage. Instances have also
been ascertained where claims have been settled in full This diversity of systexu
should be enquired into, as well as whether the regulations affecting the public hav^e
the force of law, as these regulations, although duly published in the Govemmei]^
Gazette, have only the approval of the Executive Uouncil. The company is more
than liberally treated by the Government in regard to means of revenue. In the
matter of compensation tiiey should be treated precisely a& common carriers.

Repoi^ of Chamber Railways Committee. soi

CRANEAGK

A tariff goveming the charges for the use of eranes at the smaller stations is in
operation, although the off-loading appears to be clearly the duty of the railway.

PAYMENT OF CUSTOMS.

There is a difference of practice in the payment of duties, but the question is one
which does not quite concern the merchant, and has drawn forth no complaint It is
immaterial whether the Customs are paid at the port or upon arrival of the goods.
In the case of traffic via Delagoa Bay, the Transvaal duties may be either paid at
Delagoa Bay, Johannesburg, or Pretoria, whereas duty on goods from Natal or the
Cape can only be paid on arrival of the goods at destination.

PAYMENT FOR HEAVY LIFTS.

The rates to Johannesburg and Pretoria include delivery within a 2^ mile radius ;
a special charge, however, is iqpnlied to all articles which exceed SflW) lbs. weights
This tariff for packages delivered in Johannesburg within the radius is 6d. per 100 lbs.

The statistics compiled point to the necessity for redress and relief from the
burdens of heavy railway transport and other concession monopolies under which the
mining industry is expected to prosper. The question of railway tariffs for goods
from Qie seaboard requires complete revision, so that each railway shall receive only a
fair return for the capital invested, and no railway system enjoys greater freedom and
opportuni^ for assisting the Transvaal in the development of ^ its mining industries
than the Netherlands Company.

The following annexures are forwarded for the information of the Chamber, viz :— «

Netherlands Report, 1895,
Netherlands General Regulations,
Natal Tariff Agreement

JAMES HAY.

GEORGE FARRAR.

J. PERCY FITZPATRICK.

Chamber of Mines,

1st April, 1897.

)

502

Report df Chamber Railways Comnttttee.

o»

^
1

• • • •

!25

■S
• • 8 •

^ ''A '•

b ^ JO C^ t^ i7<

O
03

•o

o
;2i

•a

Report of Chamber Railwayir Committee.

503

iBLE SHEWING COMPARATIVE RATES PER TON PER l)l|ILE

FROM

THE PORTS TO JOHANNESBURG.

PORTS.

K)A Bay
Elizabeth ...
London

iL£V • • • • • •

K)A Bay
Elizabeth ...
London

i^^i • . • • • .

K)A Bay
Elizabeth ...
London

!LM • . • ...

NORMAL CLASS (Ist and 2nd Class C. O. RailwaysX

FOSTUOUBSlt.

Milee.

Per ion

per

mile.

4-07

Netheklands.

Miles.

341
52
52

178

Per ton
per
mile.

4-27
7-7
7-7
506

Caps Railways.

Milee.

329
286

Per ton

per

mile.

2-33
2-36

O.F.S. Railways.

Miles.

333

328

Per ton
mile.

2-33
2-35

Natal.

MUes.

309

INTERMEDIATE CLASS (3rd Cliws C. Q. Railways.)

ROUGH GOODS CLASS.

3-53

341

3-69

•••.

• . .

• ■ *

• .•

* • •

...

7-7

329

333

• *•

...

7-7

286

328

...

178

3-82

. • •

...

309

Per ton
per
mile.

3-04

• . .

304

2-44

341

2-54

...

7-7

329

1-3

333

1-3

...

. . •

7-7

286

1-27

328

1-27

...

. . •

178

3-26

...

• . •

309

1-94

604

Report of Chaniftor Rftiiways Conttnittee.

SUMMARY.
RATE PER TON (2,000 Lbs.), INCLUDING CAIITACE AT JOHANNESBURG AND PRETORIA.

To JOHANNESBURG.

•

POBT

Bluabrb.

SUsT laantov.

Durban.

loubbtoo.
Mabqusb.

^d'SSsl^on- :::

3rd Glass, Intermediate . . .
Rough Gbods (5 ton lots)...

£9 6 0
8 18
7 3 4
5 5 0

£8 16 8
7 13 4
6 16 0
4 18 4

7 13 4

6 15 0
4 18 4

£7 0 0

6 0 0
4 3 4

MILEAQE.

714

667

487

•

396

- «

To PRETORIA.

1st Class \xr^,^«i

2nd 01888^°™**

8rd Class, Intermediate . . .

Rough Goods (5 ton lots). . .

£9 16 8
8 11 8
7 13 4
5 13 4

£9 6 8
8 3 4
7 6 0
5 6 8

•

£8 3 4

7 5 0
5 6 8

7 0 0

6 0 (
4 8

MTT.KAOE.

741

692

613

349

Report of Chamber Railways Committee.

505

Netherlands llailway Company's Local Goal TrafRc Rates.

RATE FOR COAL— RAND TRAM DIVISION.

Fbom Brakpan.

Fbom Sprinos.

Miles.

Per ton.

Per ton
per mile.

Miles.

Per ton.

Per ton
per mile.

Elandsfontein . . .
johannesbubg ...
roodepoort
Kruoersdorp . . .

13
24
34
43

& d.

3 2

5 3

6 9

7 11

2-92
2-62
2-38
2-21

Et.andsfomtkik

JoHANNESBUBG...

roodkpoobt ...
Erugebsdobp ...

21
82
43
51

8. d.
4 9

6 6

7 11

8 10

2-71
2-44
2-21
2-08

RATES FOR COAL TO DELAGOA BAY AND JOHANNESBURG.

To IteLAOOA Bat.

•
To JOHANMnnUBO.

I*ratn

From

Ml AVUA

Milea.

Per ton.

Per ton
per mile.

Milee.

Per ton.

Per ton
per mile.

& d.

Bronkhorstspr'it

309

0-54

Bronkhorstspr't

11 5

1-56

Balmoral

293

0-54

Balmoral

104

12 1

1-39

Bruigspruit

282

0.54

Bruospruit ...

115

12 6

1-30

Olifant's River

269

0-54

Olifant's River

128

13 1

1-28

MlDDELBURQ

254

0-54

MlDDELBURQ ...

142

13 8

115

A aM ■ • . . ...

241

0-54

^ «^xv ... ...

156

14 3

1-10

WONDEBFONTEm

226

0-55

WONDERFONTEIN

171

14 10

1-04

Belfast

213

0-56

Belfast

184

15 5

1-00

Natal Government Railways rate for coal (South African) |d. per ton (2,240 lbs.)
per mile.

Orange Free State Railways rate for coal |d. per ton (2,000 lbs.) per mile in
truckloads, station to station.

Cape Government Railways rate for coal, coastwards, ^d. per ton (2,000 lbs.)
per mile in truckloads, station to station.

Cape Government Railwavs rate for coal, inland, 1st 100 miles, Id. per ton
(2,000 lbs.) per mile in truckloads, station to station.

Cape Government Railways rate for coal, extra distance over 100 miles, |d. per
ton (2,000 lbs.) per mile in truckloads, station to station.

506

Report of Chamter Railway^ Commit^

fletherlands Railway Company's Lflcal Traflio,

Per 100 Um.

LOCAL RATES IN THE DIRECTION OF THE ORANGE FREE STATE

NORMAI. (1st ft

Intcbmkdiatb

U/>naif /^i'^Av^a

From

Milee.

2nd Class, C.O.R.)

(3rd Class, C.G.R.)

Xwvuun

^j(^^«^a^0i.

VXBKBNIOINO.

Par

Per ton

Per

Per ton

Per

Pert<

100 lbs.

per milA.

100 lbs.

per mile.

100 lbs.

per mi

a d.

To Elandsfontein

1 2

0 11

5-6

0 6

„ Bbakpan

1 6

6-80

1 2

5-3

0 8

„ Springs

1 8

6-56

1 4

6-2

0 9

„ Ebuoersdorp...

1 11

6-60

1 6

5-14

0 11

3-1

„ Randfontein . . .

2 2

6-70

1 8

5-2

1 0

„ Potchsfstroom

138

3 7

6-20

2 9

406

1 9

3-04

„ Klerksdorp ...

167

4 4

6-20

3 4

4-8

2 2

„ Pretoria

2 1

6-50

1 7

4-9

1 0

„ Johannesburg

1 5

6-60

1 1

0 8

LOCAL RATES IN THE DIRECTION OF DELAGOA BAY.

From

Milra.

Normal

Imtkiuieoiatb.

Rough Ooona.

Pbxtoria.

Per
100 Ibe.

Per ion
per mile.

Per
100 lbs.

Per ton
per mile.

Per
100 lbs.

Per
peri

ToMlDDELRURG ...

„ Barberton ...
„ komati poort

95
283
291

a d.
2 7
7 3
7 6

d.
6-5
6-2
6-1

a d.

1 11

5 6
5 7

d.
4-8
4-6
4-6

a d.
1 2
3 6
3 8

i
S

4
<

LOCAL RATES IN THE DIRECTION OF NATAL.

From

Milee.

Normal.

TKntBlODIATE.

Rough &

Elandsioktbik.

Per
100 Ibe.

Per ton

per mile.

Per
100 lbs.

Per ton
per mile.

Per
100 lbs.

ToHeidklburg ...
„ Standerton ...
„ volkskust ...

105
166

& d.

1 0

2 10

4 4

d.
7

6-5
6-3

a d.
0 10

2 2

3 3

d.
5-9
51

4-7

a d.

0 5

1 4

2 1

Report of Chamber RailwiQw Committed.

507

0»

e
eo

I
I,

-S s

rH CO

I
I

^ »» w^

"^ 5 •» t

M .» .«

N ^ 01 fh

S «1

, iH *• CO

1
i

1
I

S§.

"^8

o
H

00 ^
04 04

•TJ coo
sd CO 04

CO 04

CO CO
CO CO

•70 ^ O
Q6 0I04

T-i 04

'dr'oo

CO 04

^00^

04 00

a
t

■g

g
i

Per ton per mile.

^04 0l

Ud kO

kC kC

To Border on Johannesburg Traffic ...
To Border on Pretoria Traffic

508

Report of Chamber Railwaj^ Committee.

u»

151

^ C5

I— • f-H o

to
CO

f-H

CO
CO

o
o

f-l f-H CO

CO ©1

CO
CO

00 f-H

•k

00
lO

•k

»4

i
II

o cs

S O

'as

«^

•k

•^

00
CI

ocT

•^

o
o

•k

CO
lO

f-l a>

•^

CO
kO

•k

lO
C9

•k

f-H

kO «-^

f-H C^

«^ 3 i:

•»

•<

SZ4

fRc to the South African Republic.

DIVISIONS.

MiT.KAOB.

Normal (Ist and 2nd Classes).

Intermediate (3rd Class).

Rough Qoods.

Natal.

Neth.

Natal.

Neth.

Total.

Natal.

Neth.

Total.

Natal.

Neth.

Total.

8. d.

s. d.

8. d.

309

207

3 11

4 5

8 4

3 11

3 3

7 2

2 7

2 8

5 3

309

167

3 11

3 5

7 4

3 11

2 6 ' 6 5

2 7

2 2

4 9

309

180

3 11

3 9

7 8

3 11

2 10 6 9!

2 6

2 4

4 10

309

188

3 11

7 10

3 11

3 0 1 6 11 I

2 6

2 5

4 11

309

197

3 11

4 2

8 1

3 11

3 3 7 2 i

2 6

2 7

5 1

309

205

3 11

4 7

8 6

3 11 3 7 17 6'

2 6

2 9

5 3

309

265

3 11

5 11

9 10

3 11

5 0.811

2 6

3 5

5 11

309

294

3 11

6 7

10 6

3 11

5 8 9 7.

2 6

3 10

6 4

309

204

3 11

4 3

8 2

3 11 1 3 4 ! 7 3 '

2 7

2 9

5 4

309

178

3 11

3 9

7 8

3 11

2 10 6 9

2 6

2 5

4 U

ton per mile to Johannesburg — Normal Goods

Intermediate Goods
Rough Goods

Natal.

Neth.

304

5-06

3-04

3-82

1-94

3-26

Including cartage and terminal charges.

f »

HQUES.

Mileage.

Portgse

Neth.

199

294

331

343

352

341

360

368

428

457

> I

Normal (1st and 2nd Classes).

Portgse.

8.
1
1
1

0
0
0
0
0
0
0
0
0

5
11
11
11
11-6
11-2
11-6
11-6
11-6
11-6

•7
•7
•5

Neth.

0
2
5
5
6
6
6
6
6
6
8
8

d.
3
3
1

6-3
0-3
1-5
4-4
0-8
6-4
9*4
2-4
11-4

Total.

8. d.

1 10

3 8

6 6

o
0

Intermediate (3rd Class).

Portgse.

0
0

0
0
0
0
0
0
0
0
0

d.
11-4
11-7

01
101
10

9-8
10

9-7
101
101
101
101

Neth.

s.
0
I
3
4
5
5
5
5
5
5
6
7

d.
2-6
7-3
9-9
7-9
2

3-2
6

2-3
7-9
9-9
10-9
5-9

Total.

s. d.

1 2

2 7

4 10

5 6

6 0
6 1
6 4
6 0
6 6

6 8

7 9

8 4

Rough Goods.

Portgse.

d.
9-5
8-5

8-4

6-9

6-7

Neth.

2
3
3
3
3
3
3
4
4
5

d.
0-5
0-5
6*6
3

6*9
71
9

7-3
10
0
8
1

Total.

s. d.

0 10

1 9
3 3

3 10

4 2
4 2

4
4
4
4
5
5

4
2
5
7
3
8

ton per mile to Johanneeburg — Normal Goods

Intermediate Goods
Rough Goods

»>

»»

Portgse.

4-07
3-53
2-44

Neth.
d.

4-27
3-69
2-54

Including cartage and terminal charges.

512 Report of Chamber Railways Committee.

Government deemed it fit to express its thanks openly. In connection with the
political troubles, the Government made use on the 31st December of its right, as set
forth in Article 22 of our concession, to utilise the railway for the conveyance of*
troopa

In consequence of the decisive attitude adopted by the Government and burghers,,
the hostile attack upon the independence of the Republic was promptly defeated, and
the uproar so soon suppressed, that the extremely undesirable warlike condition of the
country lasted only a few daya On the 11th January, the eastern line was handed
back to us by the Government, and the other sections of our lines conditionally..
During the crisis the ordinary traffic was only stopped for two days, and that
between the points Erugersdorp and Johannesburg.

We have every reason to be satisfied with the results of the working of our lines^
which have been amalgamated this year.

Notwithstanding the competition by Delagoa Bay, the traffic from the Cape lines-
has not only maintained itself, but has increased to an important degree, in conse-
oqence of the extraordinary increase in the traffic for Johannesburg and the gold-
nelds.

Since the 2nd January, the port of Durban also claims a portion of traffic to
Johannesburg and Pretoria at the cost of principally the Cape ports, but through the
temporary block of goods traffic dmring the political disturbances and the colossal
importation of goods during the latter months of the year, all the ports were sO'
blocked with godds that until now each of the competing lines has had more thaik
sufficient work. The future will show how the traffic will divide itself over the three-
routes, and much will depend upon the proper working and the facilities at the
harbours.

26th June, 1890. Approval by the Executive Council of the amended concession
for the railway line from the Portuguese border to Pretoria, Barberton, Johannesburg
and Vaal Biver.

AGREEMENTS WITH OTHER RAILWAY ADMINISTRATIONS.

No alteration was made in our connection with the Cape Government Railways after
the agreement mentioned in our previous annual report. The through rates between
the Uape ports and stations in the Republic remained the same as when the Cape
Government worked the traffic at Johannesburg and Pretoria, while the rates propor-
tion of both administrations remain as fixed in April of this year.

At the invitation of the Cape Government, a conference of representatives of
South African lines was held in April, in Capetown, with a view to discussing railway
matters. As the Cape railway administration claimed the right of two-fifths of the
traffic to the South African Republic, no arrangement could be agreed upon regarding
the rates at the different harbours, and the question was postponed for further
treatment, until more particulars had been obtained and the Natal line opened for
traffic. The conference had, however, the beneficial result that, by all present the
desire was distinctly shown to obtain a unitv in the i^stem of the working of railways
through South Africa, technically as well as administratively. Some points were
submitted for study, the same to be dealt with at the next conferenca

In the meantime the ox-wagon traffic between the Vaal River and Johannesburg
and Pretoria continued until the commencement of the winter, but through want (S
forage for the cattle, the transport of traffic from the pont was temporarilv suspended
As tne Government of the Republic could well see that the ox- wagon traffic, supported
by the Cape Government, was only a way to try and compel us to roduce our rate, ^

Report of Chamber Railways Committee. 513

decided to impede this traffic by, when the summer commenced, limiting the clearance
of goods at the drift to goods which had only come oversea.

At the same time the rate reduction, which had been allowed by us on agricul-
tural products of the Transvaal, was also granted to products coming from the Orange
Free State and the Cape Colony.

The closing of the drifts. — ^The action of the Government, known by this name,
caused in the Cape Colony great d^satisfaction. This step was not only considered
as an unfriendly one, but also as an unjust act, and contrary to the existing
Convention. Whatever the case may be, uie unfriendly feeling caused by this act
made it advisable to arrive at an amicable settlement oy whicn in future such a
step would become unnecessary.

At the invitation of the Cfovemment of the Republic, representatives of the five
interested Governments, viz., the Cape Government, Natal, Mozambique, Orange^ Free
State and the South African Republic, met at Pretoria to discuss various railway
questiona The Government of tne Republic was represented by its Commissioner of
Railwavs, Mr. J. S. Smit, the State Attorney, K Esselen, and our Director,
Middeloerg. With the view of facilitating the conference, the Government had
temporarily withdrawn the closing of the drifts. A circumstance, however, led that
it was not put into working again.

Although the correspondence and discussions which had previously taken place,
led us to expect the contrary, it appeared that the representatives of the Cape Colony
still upheld the idea declared in April in regard to the dividing of the oversea traffic,
by which the Cape railways should be assured of two-fifths during ten years. In
consequence of this, all chances of an agreement being come to fell through, and after
a long discussion, the. effort to arrive at an arrangement had to be postponed, until a
further knowledge was obtained in regard to the results of the traffic conveyed^ via
Natal and Delagoa Bay. The existing condition of things, therefore, remained
temporarily, and after the conference we nad no cause for complaint in regard to our
relationship with the other railway administrations.

The events in the Republic at the end of the year did not cause any alteration in
our relationship to the Cape Government Railways. Through friendly co-operation
every effort was made to overcome the difficulties of the traffic caused by the block of
goods, consequent on the temporary stoppage of traffic

In order to confer with our directors in regard to the steps to be taken, the newly
appointed Minister of Crown Lands and Public Works, Sir James Sivewright, went
personally to Pretoria in January, and we had the pleasure to receive from him the
assurance, on that occasion, that we might count on his friendly co-operation.

PORTUGUESE RAILWAY.

The mutual arrangements arrived at between the administrations regarding
through traffic, still remain without the approval of the Portuguese Government
The traffic was worked, however, without great difficulty in accordance with arrange-
ments mada Repeated discussions took place in respect to small alterations or amend-
ments in the tariffs, the results of the meetings generally being satisfactory, although in
each case the approval of the Government at Lisbon had to 1^ obtained.^ On the 15th
November, an agreement was entered into at Pretoria with the Director of the
Portuguese Railway for the use of our pier at Lourengo Marques for general trade,
the pier then coming entirely under the control and management of the Portuguese
railway authorities, but we reserved the right of preference for the unloading of our
own goods.

514 Report of Chamber Railways Committee.

For every ton of goods unloaded at the pier we receive a fixed compensation.
This agreement vras very soon afterwards approved of by the representative of the
Government at Lourengo Marques, and remains in force until the 16th November,
1896.

NATAL GOVERNMENT RAILWAYS.

In view of the connection with Natal being completed before the end of the year,
various conferences took place for the fixing of tarifis, and to arrange the service. As
the preliminary matter for this had been nxed in the a^eements of February and
April, 1894, the conference only dealt with the details of the case, which gave nse to
no particular difficulty, so that everything was properly arranged when the line was
opened for traffic.

EXPLOITATION.
On the 1st January, 1895, the following lines were in working order: —

Lengtii.
KUo.

Erugersdorp^ohannesburg ...

Johannesburg-Elandsfontem (double line)

Elandsfontein-Springs

Mid-Vaal Bridge-Elandsfontein

Elandsfontein-rretoria

Portuguese border -Pretoria ...

Total ... ... 679 424

During the year 1895, the following sections were brought into working order-
Length.

Kilo. Miles.

Kaapmuiden-Avoca ... .,. ... 28 18

Natal Border- Aansluiting ... ... ... 256 160

So that on the 31st December, 1895, ... ... 963 602

were in working order.

On the 1st April, 1896, the section Avoca-Barberton was opened for traffic, length,
28 kilo, or 18 miles, so that 991 kiJo. or 620 miles are now in working order.

TRAFFIC.

The staff had to work under great pressure, on account of many alterations and
the continued increase in traffic

On the 1st January, 1895, it was necessary to re-organise our goods service to
Johannesburg and Pretoria, on account of the discontinuation of the running power
contract of the Cape Government, while, at the same time, the traffic on the newly-
opened eastern line required every attention.

This was, however, not the cause of the complaints which arose in regard to the
working of the traffic during the year.

Kilo.

Miles.

59 .

472

295

Report of Chamber Railways Committee^' 515

Through the continued increase of traffic, more especially from the southern
)rts, our arrangements at Johannesburg could not keep pace with the traffic coming
»rward, and this was especially the case during the first half of the year. Our
irtage contractors at Johannesburg were also not sufficiently equipped for the
nount of traffic.

In August and September we feared there would be a serious block at Johannes-
urg, and only for the great exertions of our staflf and the co-operation of the cartage
mtractors, who were continually extending their plant, we would have been unable
' cope with the condition of aflfairs.

On the eastern line the miserable forwarding of traffic by the Portuguese
terfered with the regular working of goods traffic, and the time taken between
le unloading of the ships and the arrival of goods at destination is still
o long.

In order to give the traffic on that line a fair chance, not only are many
iprovements necessary at Lourengo Marques, but the Portuguese line requires also to
i taken in hand. Locomotive power at the disp<^3al of the railway authorities should
i considerably increased. It has already been pointed out in this report that we
kve been again disappointed this year in our expectations by the Portuguese
Dvemment in regard to the harbour railway organisation, and the working of the
affic.

On the 27th August we took over the management of the south-eastern line from
le border to Standerton, and that section was opened for. traffic. On the 15th
ovember the section Standerton to Heidelberg was opened, and at the same time the
)ods traffic from the border to Heidelberg was started, although originally it was
tended to open the line entirely on the 15th November to the south line, but
iav^ rains at the commencement of November compelled us to.. postpone the
»ening.

On the 15th December the entire line was opened for traffic, passengers, parcels,
ggage, and perishables, while on the 2nd January, 1896, the ormnary goods traffic
Gts allowed.

Since the 15th December a mail train, first and second class, has run daily in
ch direction, and a mixed train for passengers, first and second class, natives and
rishables, and since the 2nd January a fixed goods train has also run, while
ditional goods trs^ns were worked as required.

From the nature of the circumstances the traffic of 1895 was not of much consc-
ience, but the large increase during the early part of 1896 gives great expectations
the traffic over this line for the future, both passengers and goods.

On the Barberton siding, of which the section Kaapmiuden-Avoca was opened on
e 1st March, the traffic was satisfactory.

The increase in the local traffic as well as the traffic with the ports compelled us
considerably increase our locomotive and rolling stock. Although importcmt orders
r rolling stock had been sent, so that each month 7 locomotives and 100 goods trucks
ire being put in running, it was not easy for us to satisfy the reasonable demands
th the stock at our disposal.

In consequence of the Eaap River bridge being washed away by a flood on the
!i February, a block took place. In another part of this report full particulars of
is accident are recorded.

At the end of the winter the scarcity of water greatly impeded the favourable
nrking of traffic forward. No other irregularities of anv consequence have to be
x>rded, and the regular working of our service was satisractoiy.

616

Report of Chamber Railways Committee.

TRAJJ'FIO STATEMENTS.

Of the results of workinfi^, of which details are in the enclosures of this report, the

following figures give a rough statement

•

1896.

1894.

Mean length in working ...

754 kil(».

445 kilos^

Number of day kilo.

275,210

162,333 „

}f >i -L ram ^y • . • • ■ •

... 3,395.553

1.608,557 „

„ „ Passengers Ist

... 296.614

137,462

»» )» >i 2nci ....

371.979

327,002

»» M t> (coloured)

399,732

232,991

„ „ „ travelling on Govt authority 2,273

901

Baggage (English Iba)

... 3,056,258

1,562,885

Parcels „ „

... 4,691,351

2,915,333

Smalls „ „

... 22,204,004

6,228.825

Ordinary goods „ „

... 542,468,639

403,003,351

Rough go^s „ „

...1,677,778,727

1.145,144,513

The receipts were as follows : —

1895.

1894.

1883.

Passengers and baggage £329,562 13
Goods and live-stock ... 1,031,626 0

5 £152,415 3

£124,919 6 10

4 523,966 6

398,378 15 0

Telegraph ... ... 3,813 19

3 2,263 15

904 13 6

Import duties ••. 137,337 2

3 56,536 9

47,370 2 11

Sundries ... ... 47,731 18

0 62,200 7

38,840 1 8

Totals £1.550,071 13

3 £797,382 2

£610,412 19 11

The sundries include the monies earned by letting of refreshment rooms, book*
stalls, etc., rent of house, storage, rolling stock in use by contractors, and compensa-
tion for the use of our pier at Lourenco Marques.

£668,297 15 2

Cost of Working in 1895

„ 1894
1893

388,239 15 10
255,918 0 7

Finally we give here a comparative statement of the principal traffic figurea

I)
>»

isdi.

£1,791 17 5
4 18 3
0 9 11
0 4 10

48*68 per cent

1893.

£1,811 6
4 19
0 10
0 4

S
4

41*92 per oent

1805.

Receipts per kilo, length ... £2,055 15 11

day kilo. ... ... 5 12 8

train kilo.... ... 0 9 If

Cost per train kilo. ... ... 0 3 11^

traffic cost in percentage to receipts 48*49 per cent.

When comparing the above it must not be lost sight of that the larger portions of
the line were irregularly brought into working, as the sections were from time to
time opened for traffic ; this greatly influenced the eastern line in 1893 and 1894, and
the south eastern line in 1895.

TARIFFS.

Our principal rates have met with no alteration except a small dassification
alteration, and the reduction on South African agricultural products.

Report of Chamber Railways Committee. sir

Some special rates for the conveyance of some goods in local trafiBc, and for the
exportation of some products came into operation this year, together with the tari&
fixed in the past year for through traffic with the Natal Government Bailways.

FINANCIAL STATEMENT.

As mentioned in our previous report, the expenditure for the railway line from
Charlestown to the connecting point on the southern line near Elsburg, was estimated at
£1,250,000, of which an amount of £760,000 would be covered by the Natal Govern-
ment, £800,000 four per cent, obligation to be sold at 95 per cent.

Of the loan £1,250,000 remained in portfolio £450,000

When in September an oifer was made to purchase the obligations in hand in

S>rtfolio for more than 100 per cent., the same was accepted and approved of by the
ovemment, and it was decided to discharge a similar amount at 5 per cent.
oblij?ation.

When compiling our building account it was found that the means on hand allowed
us to increase the amount to £450,000 (5,400,000 guilders) and 6,873,500 guilders in
order to reduce the rent.

Therefore, on the 31st December, 1895, the balance of 5 per cent debentures was
paid up, being 3,874,500 guilders and 3,000,000 guilders of the 5 per cent loan of
1891, which are shown on the balance sheet, representing an amount of 8,940,000
guilders in accordance with the conditions oi the loan were disposed of by
ballot

The obligation set aside for payment was disposed of by ballot in November.

The entire loan of £1,250,000 is now shown on the balance sheet

In regard to some of the headings on the balance sheet, the following information
may be useful : —

The construction (railway) account was increased by 2,888,034*905 guilders
(£240,669 lis. 6d.). The increase is due partially to the expenditure on the siding
for Barberton, which was not completed on the 31st December. Also through the
heavy cost of ballasting, and having the main line in working order on the 1st
January, 1895, and lasuy in consequence of the important extension of works, of
which an amount of 1,094,30990 guilders (£91,192 9s. lOd.) was expended in 1895,
and paid fi*om the money in the reserve fund.

This construction account was reduced by the value of the articles of goods
mentioned in the inventory statement, which was brought over to a separate account.

The construction account of the tramway is increased by 158,412*55 guilders
(£18,201 Os. lid.) on account of the extension of works, the cost of which was paid
out of the reserve fund.

The Natal line has cost m 1895, 7,419,393*96 guilders (£618,282 16s. 8d.), and
the money expended on the railway, Erugersdorp to Elerksdorp, was 557,430*73
guilders (£46,452 11a 3d.).

Through the placing in working order of 29 engines, the value of our locomotive
stock has been increased by 887,000 guilders (^£73,916 13a 4d.), and on the 3l8t
December we had 119 engines in working order.

Our rolling stock was also largely increased in number, and the value increased
by 1,402,877*885 guilders (£116,906 9a lOd.;.

Additional sheet No. 6 gives a specification of 152 engines, and 2,676 of other
vehidea Of this number, however, 33 engines and 663 ot£er vehicles were not used
on the 31st December.

After the dissoltltion of the contract with Mr. Watkins, the building of the

518 Report of Chamber Railways Committee.

Barberton line was taken into our own hands, the payment of which was made by
the sale loan of £330,000 to the Delginsfonds. The amount of the obligations in
the portfolio was reduced thereby by 1,191,600 guilders (^£99,300).

The new heading shown as " Mail Transfers from South Africa " showing the
amounts which were on the road as remittances on the 31st December from Africa to
Europe.

in consequence of the issue of the 4 per cent obligation loan amounting to
£1,250,000, the heading " Currency," difference is increased, notwithstanding the
currency difference of the loan, was deducted on the payment of a portion of the 5
per cent loan.

The allotment, which was deducted from the balance to the exploitation account,
amounted in 1895 to 236,000 guilders (£19,666 13s. 4d.).

In the reserve fund of the tramway of this year has been placed 214,839*63
guilders (£17,903 6& Od.^ of which, however, an amoimt of 158,412*55 guilders
(£13,201 Oa lid.) was expended for extensions, and 5,69415 guilders (£474 10a 3d)
for extraordinary repairs. The fund has been increased, as well as by the loan, by
50,732*93 guUders (£4,227 14s. lOd.)

Be it hereby noted that the decision of the Executive Council of the 7th^
January, 1891, allowed us to accept, as a basis for stipulation, the annual payments
into the reserve fund of the proceeds of 1894 on the tramway line, and, therefore, th^
separate booking of such proceeds was cancelled.

In the reserve fund of the railway has been placed a balance of 241,733*85
guilders (£20,144 9a 9d.) viz: the difference between the amount of 1,650,120*80
guilders (£137,510 la 4d), and what has been paid for extensions 1,094,309*90
guilders (£91,192 9a lOA), and for repairs 314,07705 guilders (£26,173 la 9d.).

The latter also includes the cost caused by the destruction of the E^aap River
bridge amounting to 125,019*30 guilders (£16,251 12a 2d.).

Elnclosure No. 2 shows the condition of the reserve fund.

The amount shown under the heading of " Superannuation Fund," represents the
balance not invested of the extraordinary receipts collected on account of the fund

The Delginsfonds shall be increased this year by an amount of 257,350 guilders
(£21,445 16a 8d.). The purpose of this fund has been fully described in our previous
report

After deducting from the clear account of the exploitation account the rental
and amortisation loan, and the assured dividend, there remains an amount of
4,350,508-205 guilders (£379,299 Os. 4d.).

According to Article 34 of the concession, 90 per cent, is to be paid out, or
4,095,457*385 guilders (£341,288 2a 4d.) so that as an extra profit remains the sum of
455,050*82 guilders (£37,920 18s. Od.).

We would advise to issue thereof an amount of 420,000 guilders for payment of
30 guilders or 3 per cent super-dividend on all shares in accordance with Article 38
of our Statutes, so that after the payment on the 2nd January of 22*50 guilders
(£1 17s. 6d.) on the shares of the second series, and of 30 guilders (£2 10a) on all
other shares, on the 1st July a dividend of 52*50 guilders (£4 7a 6d.) on the shares of
the second series, and of 60 guilders (£5) on all other shares will be paid out

The receipts for the year 1895 have greatly exceeded our expectations; they
testify to an unknown flourishing condition, not only for the gold industry, but also
to other sources of prosperity. Although Johannesburg proves to be the most
important station for goods traffic, nevertheless we see that other stations contributed
to an important degree to the receipts.

The year now commenced will prove the influence of the opening of the Natal

Report of Chamber Railways Committee.

519

line. The harbour of Durban has already drawn a considerable amount of trafiBc, and
it is expected that each of the three routes will claim a sufficient paying portion of the
importation and exportation, so that a killing competition will be obviated if none of
the competing railway administrations try to master too large a proportion of the
trafiBc at the cost of the others. Next to the diiferent rates for traffic, the geographical
position, and the institution of various harbours will remain of great importance in
regard to the portion of traffic claimed by the three routea

The prospects of the newly commenced year are favourable. From the under*
mentioned comparative statement it will be observed that during the first four months
the receipts have considerably increased.

It must not be lost sight of, however, that the length of line in working order
was during four months in 1895 about 693 kilo., and at the commencement of 1896
963 kOo.

According to the telegraphic statements the receipts for the first four months are
as follows : —

1896.

Railway receipts
Import duties
Coal Mine — Springs

Totals

1895.

Railway receipts ...
Import duties
Coal Mine — Springs

Totals

January.

£135,100

13,900

3,100

Febmary.

£195,100

16,100

4,500

llarch.

£194,500

18,300

4,700

£217,500

ApriL

£206,500

15,900

4,900

£172,100

£215,700

£227300

74,900
6,500
4,100

60330
3,870
4,100

85,150
8.100
3390

96,300
8,700
3,900

£85.500

£68,300

£97,140

£108,900

520 Report of Chamber Railways Committee.

NETHERLANDS RAILWAY COMPANY.

GENERAL REGULATIONS.

Article 1. — Whenever the words " administration " and *' manager " occur in these
rules and regulations, they apply respectively to the administration and the manager
•of a railway or steam tramway.

Article 2. — A copy of the time*tables r^ulating the running of trains is posted
oip in the waiting-rooms in a conspicuous place.

Article 3.' — The waiting-rooms are opened to the public at least half an hour
before the departure of every train, and remain open until the train has left the
:station.

Article 4. — Whenever the traffic is interrupted, or when the usual means of oon-
Teyance are insufficient, conveyance cannot be claimed by any particular train.

Article 5. — The name of every station and stopping-place is exhibited so as to
he readily and distinctly seen from the train.

Article 6. — All payments are made in currency recognised by the Government
of the South African Kepublic.

The administration is not compelled to accept in payment any foreign coin or
1)ank-note which may be refused in Government offices.

Article 7. — In relation to the conveyance of goods or any other articles on
railways or steam tramways, the consignor is held to oe — as long as no advice of the
^arrival of the consignment has been given — the pei*son who has entrusted the goods
for conveyance ; and, as soon as such advice of arrival has taken place, the consignee
is held to be the person to whom the goods were invoiced (or addressed).

In this respect the administration is not bound to follow any other instructions
than those given by the consider.

When, nowever, the consignee has been advised of the arrival, the railway or
tramway officials must act according to his directions.*

Article 8. — All papers, documents, permits, etc., which in conformity with the
laws, regulations, and prescriptions of the Government of the South African Republic,
in respect of import duties, taxes, or any other subject, are reauired for the convey-
.ance of goods, must be provided by the consignor, and — accoi*ding to the conditions of
consignment— joined either to the consignment note or to the address label, on which

* Explanatory remark of the Neth. S. A. Railway Co. : The consignor has the right to request
either the return of nis goods, or their delivery to another person than the consignee mentioned in the
consignment note.

The station officials are bound to give effect to his request whenever they receive it, either bv letter
or telegram, before the consignee has been advised of the arrival of the consignment ; provided : (1) That
the forwarding station is requested by the consignor to authorise the station of destination to follow his
instructions ; or (2) that the necessary instructions are given directly to the station of destination, without
interference from the forwarding station.

In case of urgency, it is at first sufficient for the consignor to request the station of destination not
to deliver the goods, stating at the same time that the authorisation of the forwarding station wiU follow ;
he must subsequently act as above prescribed. The forwarding station, in snch cases, is bound to see tbi^
ihe duplicate invoices or goods receipts eventually delivered are returned. *

Report of Chamber Railways Committee^ 521

ihey have to be clearly mentioned. When no such mention occurs, the administration
IB not responsible for those papers, documents, etc., etc.

The consignor is and remains, as long as the consignee has not taken his place,
Tesponsible for the validity of those documents, and all costs arising from his neglect
to observe any prescription of the law, the regulations, or the Government, are on his
account.

Article 9. — The consignor, during the time of loading and conveying, and the
consignee, at the time of unloading, are responsible for any damage caused to the
rolling stock and plant of the fidministration oy animals, goods, or things of any kind
whatever.

Article 10. — Goods, live-stock, and vehicles cannot be taken for conveyance
except from and to the stations mentioned in the tariffii as open for such traffia

Article 11. — All articles which, at the expiration of one month after arrival of
the train on which they were placed for conveyance, have not reached their place of
destination, are considered as lost or missing.

Article 12. — All articles not of a perishable nature foimd on a train or at a
station are temporarily taken in charge by the stationraaster, who, after having
registered them, nahds them over to the police, with the formalities prescribed by the
administration with the Government's sanction.

Articles of a perishable nature, or which seem to be spoiling whilst being in
charge, are sold by the railway or steam tramway officials in whose custody they are,
the amount realised by the sale being then held to be '' goods found," and disposed of
as sucL

Article 13. — A consignment note filled up on a printed form, signed legibly by
the consignor, and bearing the stamp of the administration, must accompany all goods
(excepting luggage and parcels), live-stock, vehicles, and corpses taken for convey-
ance.*

Article 14. — ^The delivery of ^oods (excepting luggage and parcels), live-stock,
vehicles, and corpses, takes place wnen the consignment note is returned to the rail-
way or steam tramway officials, and the stamp is cancelled as evidence of delivery ; or
when the goods are otherwise duly receiptea for by the persons who receive them ;
and, if they were not forwarded '' carriage paid," the amount due for freight and all
incidental charges is to be paid before delivery. All hired covering sheets have to be
returned.

Article 15. — Goods imported into the territory of the South African Republic,
and sent to stations where there is. a Custom House, are unloaded there and placed in
charge of the revenue officers.

All freight and other charges due to the railway have to be paid before goods
can be deposited in a bonded warehouse, in the name of the ccMiaignee.

The consignee has himself to provide, on his own account and at his own risk,
for tiie removal of the goods from the Custom House under the supervision of the
revenue officer.

Charges according to tariff are made for goods kept at the Custom House, where,
however, they cannot oe left longer than three day&

Article 16. — Whenever the freight and other railway charges are not paid
within tiiree days, the goods are deposited in the Government or rulway warehouse,

in the name of the railway, but on account and at the risk of the consignee.

»■■■■■■ ■ ■ II ■-^^— ■ ■

* EzplanAtorv remark of the Neth. S. A. Railway Co. : Station ofBoials are bound not to aocept
whfoXty or partly flealed consignment notee.

522 Report of Chamber Railways Cotntnlttee.

In that case the consignee is bound to pay to the administration — besides the-
amount due for storage at the Custom House and removal to the warehouse — a sum
equal, as a maximum, to twice the amount of the warehouse charges incurred ; one-
half of that sum going to the warehouse in settlement of dues, and one-half to the:
railway as compensation for rent and administrative expenditure.

Article 17. — ^Whether the goods are cleared at their place of destination or at an
intermediate station, the consi^ee is bound to provide for the proper declaration of
goods which have arrived under Government's seal, or about which formalities are^
required.

Before goods, with the documents relating thereto (for which documents a-
separate receipt is obtained) are delivered to him, the consignee must see that all
necessary formalities are complied with, that the goods, if required, are produced for
inspection, and that all permits and other documents are cleared in due time. By
neglecting to do so, he renders himself liable to all the consequences of his omission.

At the request of the consignee, the administration may, directly or through the
intervention of another person chosen by itself, undertake, under the responsibuity of
the consignee, the fulfilment of the formalities and the clearance of the goods and of
the documents, upon payment by the consignee of the tariflf charges. The administra-
tion is not, however, oound to do so.

Article 18. — Should the consignee either refuse to receive the consignment or
refuse or neglect to pay the freight and other charges arising therefrom, the adminis-
tration wires to the consimor a request for instructions as to the steps which he may
wish to be taken ; and ii no satisfactory reply or no reply at all is received within
twenty-four hours, then the administration may either:

(a) Return the consignment to the forwarding station at the disposal of the con-
signor, who can obtain delivery of the same on payment of the freight for
the double journey and of all incidental charges, such as demurrage, storage,
ete. ;

Or (6) cause, on account and under the responsibility of the consignee, the con-
signment to be unloaded, deposited in tne goods shed or elsewhere, and wholly
or partly sold, with or without the consignee's knowledge. Prom the pro-
ceeds of the sale the administration is authorised to retain the amount due
for freight and other incidental charges ; and the balance, if any, or the
unsold portion of the consignment is, on application to that effect, handed
' over to the person entitled to receive it.

A refusal to receive the consignment or to pay all dues entails the forfeiture of
the consignee's and consignor's rights against the administration.

Article 19. — ^The prescriptions of Article 18 (a and 6) are applicable in the case
that the consignee cannot be found at the place of destination of the consignment
Should anything have been delivered to a consignee and no payment of dues have
followed the delivery, the fidministraticm ' has the right to act according to Article 18
(6), in regard of other things intended for the consignee, and which are or may come
into its possession.

Article 20. — The administration may claim, according to teriff :
(a) Compensation for blank forms and eventually for copying, filling up, and
stomping consignment notes ; for the use of weighing machines, cranes, and
other unusual appliances; for the fulfilment of the Custom Bouse for-
malities ; for the return freight of j^oods which could not be delivered or the
acceptance of which was refused ; wt the detention of trucks and the use of

Report of Chamber Railways Committee. 523

its grounds, sheds, or store-houses ; for receipts given by the administration ;
and for meeting advances and reimbursements ;
(6) Smart money and conventional fines in consequence of wrong declarations as
to the kind, description, and weight of goods.

Section IL
RESPONSIBILITY.

Article 21. — Save the provisions of Articles 24 and 25, the administration is
generally responsible for loss of or damage to goods entrusted to it for conveyance,
occurring through the fault of its manager, officers, or servants.

Abticle 22. — The responsibility of the administration in respect of goods en-
trusted to it for conveyance, ceases as soon as their delivery has taken place. If the
administration has undertaken the cartage of the consignment, its responsibility
ceases as soon as the goods have been brought before the residence or storehouse of
the consignee.

Article 23. — In connection with the foregoing provision, the administration
undertakes the conveyance of goods, at the choice of the consignor, under the follow-
ing conditions, viz. :

(a) The administration binds itself to deliver the goods received for conveyance,
in outwardly good condition, at their place of destination, and is responsible
for the non-fmfilment of this obligation, inasmudi as it cannot prove that
this was the result of circumstances for which it could not reasonably be held
accountable.

Such circumstances are, among others :

Higher might or greater might, fault of consignor or consignee, defective con-
dition, nature or properties of the goods, etc.

(b) Conveyance at lower rates than under the foregoing provision, is undertaken
on the principle of an agreement for the performance of a service, in virtue
of which the administration is bound, merely and only, to convey the con-
signment, on its railway or tramway lines, to the appointed place of destina-
tion ; but does not hold itself responsible for any loss or damage to which
the consignment may be subjected oy reason or in consequence of its being
thus conveyed ; the consignor taking upon himself all the risk of the con-
veyance.

Article 24. — The administration is not responsible :
(a) for loss of or damage to :

1. Goods or articles of any kind, in consequence of fire, war, internal disturb-

ance, storm, violence, and in general higher might or greater mi^ht ;

2. Packages or parcels conveyed at luggage, parcels, or goods rates, uie insured

value of which does not exceed £10, and which contain such valuable
articles as : precious metals and precious stones either rough or polished ;
jewels, pearls, and jewellery ; gold and silver coin ; banknotes or other
papers of a nominal money value ; title-deeds or other valuable documents ;
maps, prints, engravings or paintings; costly article8,8ubstanoes, orna-
ments, and valuable things of .any kind ;

& Goods conveyed in open, uncovered trucks, whenever the loss or damage
mifht have been prevented by proper and sufficient covering;

4. Goo& not properly packed or not sufficiently secured ;

H 2

524 Report of Chamber Railways Committee.

5. Carriages or other vehicles, unless their value is insured according to Article

30 ; velocipedes conveved as luggage or parcels ;

6. Goods or vehicles placed, with or without covering, on open ground, either

through want of sheds and covered places or oi sufficient space therein,
with or without the consent of the consignor or consignee ;

7. Goods warehoused, according to Article 16, on account of non-payment of

freight and other charges resulting from their conveyance ;

8. Luggage conveyed without chfiu*ge, not booked, badly packed up, or having

old labels attached to it ;

9. Empties returned at reduced rates, such as casks, cases, boxes, eta, and what

may be secreted therein ;

10. Smalls or packa^ of mods not properly packed up, marked, addressed or

declared, or having old labels attached thereto ;

11. Explosives or dangerous substances and goods, the conveyance of which is
authorised by the " Rules and Regulations for the conveyance of dan-
gerous substances " or by resolution of the Government.

(b) For damage to :

1. Packages, the contents of which are so different from each other that there is

danger of breakage ;

2. Goods of a fragile nature, such as glasswares, slight delicate articles of

furniture, cast-iron wares, jars or bottles filled up or empty, bells, clocks,
pasteboard works musical instruments, stuffed animals, barometers, ther-
mometers, medicines, articles made of bamboo, straw or other brittle
material ;

(c) For goods sent to a station till further order or till called for, or deposited
in the goods shed for the convenience of the consignee ;

(d) For ordinary leakage or spilling of liquids through joints, sutures or other
openings without visible signs of damage, and for leakage resulting from
defective casks, tincases, or other vessels ;

(e) For meat, iish, vegetables, fruit, game, eggs, bread, cheese, butter, ice, plants,
and flowers, spoiled or decreased in weight ;

(f) For the spoiling of liquids or wares apt to ferment or deteriorate throu^
the action of frost or heat.

(g) For metals getting rusty.

Article 25. — ^The administration is not responsible :

(a) For luggage, parcels, goods or vehicles the consignor of which offers to pay
the insurance premium but will allow no inquiry as to the value of the
consignment ;

(6) For damage resulting :

1. From insufficient fastening of covering sheets by the consignor ;

2. In loading and in transit, f i*om improper loading by the consignor ; and, in

off-loading, from improper off-loadmg by the consignee ;

3. From loading or off-loading bulky or weighty articles, loaded or off-loaded by

railway servants by request on the consignment note ;
(c) For loading and off-loadinjr and for return or further conveyance and storage
(in case the consignment was neither off-loaded nor accepted by the con-
signee), of explosives, the conveyance of which is authorised in terms of the
" Rules and Regulations for the conveyance of dangerous substances " or by
Resolution of the Government ;

Report of Chamber Railways Committee 525

(d) For goods, live-stock or vehicles :

1. Which, not having been off-loaded and taken away, are either sent back by

the administration or off-loaded by the railway servants and placed and
put up on the grounds or in the goods-sheds of the railway, or temporarily
elsewhere ;

2. Which are stored in the goods-sheds or placed temporarily elsewhere, when

the consignee cannot be found or refuses to pay the freight and incidental
charges ;

3. Which have been left on the grounds, in the storerooms or on the trucks of

the administration, on account of the consignor's or the consignee's want
of attention to the prescriptions relative to the time of loading, off-loading,
and taking aWay ;
{^e) For live-stock lost or injured in transit :

1. Through jumping away, falling, being pushed or thrown out, or frightened,
, hurting each other, choking, and similar causes, whenever the loss or

injury occurs whilst loading and tying, or untying, and off-loading, whilst
in transit, or whilst stopping at a station ;

2. In consequence of the special dangers to which the conveyance exposes the

animals, and for the prevention of which the presence of attendants is
necessary.

3. Resulting from the off-loading and stabling, in case that the animals are not

off-loaded and taken away by the consignee ;
•(/) For the arrival in good condition of live-stock, when the animals are :

1. Sick;

2. Savage, wild or vicious ;

3. Of small size, such as monkeys, dogs, cats rabbits, fowls, pigeons, birds, etc.,

forwarded in boxes, cages, baskets or bags ;
^) For articles put upon carriages or other vehicles loaded on railway trucks ;
for loading or off-loading carriages or other vehicles — whether without or by
request — with the help of rauway servants ; and for off-loading, if the
consignee does not off-load and take away the vehicles.

Section III.
INSURANCE AND COMPENSATION.

Article 26. — For luggage, parcels, goods, or live-stock lost or damaged, the
^ministration, whenever m duty Dound to do so in terms of these Rules and Regula-
tions, grants to the interested parties, as compensation for the loss or damage actually
flustaoned, a sum not exceeding the amount fixed by the special tariffs established for
every class of good&

In cases of damage, the amount of damage sustained must be proved by the
interested person, and the value of the undamaged portion is deducted from the whole
value.

Abticle 27. — In such cases, none can claim compensation in excess of the amount
"fixed by the tariffs mentioned in Article 26, unless the value of the consignment has
been stated, and the luggage, parcels, goods, or live-stock have been insured by the
administration, on payment of a fixecTpremium according to the insurance tariffs.

Abticle 28. — Any request for insurance of luggage, parcels or goods must be
accompanied by a declaration stating the contents of the packages.

Tne insured goods must be so packed up that nothing can be abstracted therefrom
without destroying the packing case or wrapper.

526 Report of Chamber Railways Committee.

Article 29. — Bailway or tramway officials have the right to ascertain whether
the declared value of insured luegage, parcels, or goods is correct^ and, for that pur-
po3e, to request the opening of me packages. If their request is denied, no insurance
takes place.

Article 30. — For vehicles lost or damaged, the administration is bound only to
give compensation when the value has been declared and the vehicles have been in-
sured by the administration, on payment of the premium fixed by the insurance
tariffa

Article 31. — ^The insurance premium must always be prepaid.

Article 32. — ^The administration and the person obtaining the insurance giv&
each other a declaration stating the value covered by the insurance.

Article 33. — The administration, upon discharge of its liability, gives to the
person entitled to it, as compensation for the loss or damage actually sustained, an
amount not exceeding the insm*ed value. ,

Article 34. — Whenever the consignee claims compensation for damage or loss,
he is bound :

(a) In case of damage, to have the damage verified immediately on his takiiu;
over the goods, in presence of the stationmaster or any other qualified offidat
and to hand over his claim for compensation to the stationmaster, in writing^
and clearly specified, within three days from the arrival or delivery of the
damaged consi^ment.
(6). In case of goods lost or missing, to hand over his claim for compensation to
the stationmaster, within fourteen days, from the day on which the goods,
lost or missing should have arrived and been delivered, or from the day
on which he is advised of their non-arrival.
A specified statement of the missing goods must, in every case, be joined to the
claim.

Section IV.

CONVEYANCE OF PASSENGERS.

Article 35. — Passengers are conveyed exclusively by the trains appointed for
their conveyance.

Article 36. — For the convenience of the public, passengers may, however, be
allowed to travel by goods train not indicated in the time-tables as open to passenger
traffic, if, in the opinion of the administration, there is occasion for it, upon payment
of a second class ticket for place in a goods wagon. These tickets can only be obtained
at stations or sidings where goods trains stop and where railway officials are
stationed.

Such conveyance takes place in every respect without any responsibility for the
administration.

Article 37. — Passenger tickets are obtained at the stations of departure and
from the guards in the train, and they are available only for the train for which they
are issued.

Passengers may be requested to hand over the price of their tickets in money
requiring no return of change.

Article 38. — ^In ordinary passenger trains there are at least two classes for white
people, and a distinct class for kafirs and coloured people.

No native or coloured person can sit in a compartment intended for white people^

Report of Chamber Railways Committee. 527

Article 39. — ^In mixed trains and in express trains there may be only one class of
carriages for white passengers.

Abticle 40. — When a train, for any cause whatever, stops on the line anywhere
else than at a station, siding, or stopping place, no passenger is allowed to step out of
the carriages without permission from the head guard.

Article 41. — ^At the arrival of a train at a station or stopping place, to prevent
accidents, the passengers are not allowed to leave the carriages oef ore the doon^ have
been opened by railway servants. At intermediate stations, sidings, or stopping
places, the carriage doors are not opened except at the passengers' request.

Article 42. — Besides the penalty to which they render themselves liable accord-
ing to the police laws for railways and steam tramways, travellers attempting to evade
payment for their conveyance are expelled from the brain.

Article 43. — Passengers who take place on a train at a stopping place not
mentioned on the tariff tables, have to pay the price of a ticket from the preceding
station mentioned on the tariff tables.

Article 44. — Passengers who leave the train at a stopping place not mentioned
on the tariff tables, have to pay the price of a ticket to the next station mentioned on
the tariff tables.

Article 45. — Passengers who wish to pass from the second to the first class must
take an additional ticket of the lower class next to the second class, from the station
or stopping place where the change has taken place.

If the change of place occurs between two stations, the guard must at once be
informed of it, and the additional ticket be taken from the next station or stopping
place mentioned on the tariff tables in the direction wherefrom the train is coming.

Section V.

CONVEYANCE OF LUGGAGE, PARCELS, AND ARTICLES OF VALUE.

Article 46. — Luggage includes all the travelling requisites taken by a passenger
for himself and those who accompany him, such as trunks, portmanteaus, travelling
bags, hat boxes, and such other articles.

Article 47. — ^The railway or steam tramway official, whose duty it is to receive
I^i£gftg6 f^ conveyance, decides, in disputed cases, whether the articles taken by the
pafisengers may or not be held as luggage.

Article 48. — Luggage, for the conveyance of which no payment is required, is
conveyed in the luggage- van, or, if there is room enough, and the luggage consists of
smally easily portaUe articles, which in the judraient of the guara may without
hindnnce be plac^ under the passenger's seat or m the luggage net above it — ^in the
carria^ wherein the passenger takes his place.

^e passenger must himself attend to the proper labelling, loading and off-loading
of his luggage.

Article 49. — Passengers are at liberty to leave their luggage in the carriages in
which they have taken a seat, provided that nothing in this matter be done in
cantravention of the prescriptions of the law relative to import duties and taxes.

Article 50. — Conveyance mav be refused for luggage which in the opinion of
railway officials is not properly packed or has old labels stiU attached to it

JLrticlb 5I.-^Luggage which may be conveyed without payment is not booked
unless at the passenger's request, who then has to pay according to the tariff rates.

528 Report of Chamber Railways Committee.

In case of excess luggage, the whole luggage must be booked and freight pud for the
excess weight, acconnng to the tariff rates.

Exhibition of the passenger's ticket may be requested before the luggage is
booked.

Article 52. — Booked luggage cannot be taken by a passenger in his carriage,
but must be put into the luggage-van.

A receipt of booked lug^ge is given to the passenger, on presentation of which
the delivery takes place, without any occasion for inquiry as to the identity of the
receipt-holder.

Article 53. — ^Booked luggage not taken away within 24 hours after arrival, is*
on account and at the risk of the passenger, taken in custody and delivered on pay-
ment of storage according to tariff rates.

Article 54. — Every passenger must himself see to it :

(a) That his booked luggage is duly loaded and off-loaded at the place of
destination.

(b) That it is properly labelled with his name and the name of the place of

destination.

Article 55. — Should there be eventually no available room left, the administra-
tion has the right to convey excess luggage by one of the next trains following that
by which the passenger is or should be taken ; and, in that case, the passenger may,
without any additional charge, have his ticket exchanged for another allowing him to
take the train by which his luggage is conveyed.

Article 56. — Luggage not called for by the owner within one month after amval»
is, in terms of Article 12, handed over to the police.

Article 57. — Consignments of or under a certain weight are always conveyed as
parcels, unless the convevance as normal goods is positively requested.

Consignments exceeding either the maximum weight or corresponding number
of cubic feet in dimension, are not necessarily taken for conveyance as parcels. Should,
however, the address label contain a request to that effect, they may be conveyed aa
parcels, if the service permits of its being done.

Article 58. — Every consignment consists of a single package. If several
packages (colli) are taken for conveyance to the same address, every package is held
to be singly consigned.

Article 59. — Packages are charged for freight according to tariff rates.

The freight charge is increased 50 per cent, and levelled up to sixpence for:

(a) All bulky packages.

(6) Packages the contents of which are taken for conveyance at owner's risk, as
mentioned, in Article 24 (62).

(e) Packages the contents of which are such as not to allow of any other artide
being placed upon them without causing damage. To that category
belong paintings, engravings, baskets containing victuals, etc

Article 60. — Consignments consisting of gold and silver coins, banknotes and
other valuable papers, precious metals and precious stones (rough or othendae)^
jewels, jewellery and pearls, as well as other sorts of goods^ substances, or articles, of
which the value exceeds £3, are taken for conveyance as parcels only, on payment of
the tariff rates, and after having been insured by the administration.

Article 61. — ^The administration may refuse to convey parcels not properly or

Report of Chamber Railways Committee. 529

soffidentlv packed up or containing goods or things of a perishable nature, which, in
terms of Art 24 (a 4, e and /), are conveyed without responsibility for the adminis-
tration.

Abticle 62, — ^The consignee is advised — by post if expedient— of the arrival of a
package, and, on calling for it, must produce the advice note and give a receipt.

Article 63. — If the consignee thinks that the package is damaged or not in
good order, he has the right to have its condition examined at once by the railway
official in presence of two witnesses.

Article 64. — Whenever the consignee refuses to receive a package, or when a
package has not been called for within one month after arrival:

1. The administration must immediately inform the consignor, in writing,

of the circumstance ; the costs of that information are charged to the
consignment .

2. The package is returned to the forwarding station, and placed there at the

order of the consignor, who can obtain its delivery on payment of freight
for the return journey, and of all incidental charges.

Article 65. — Should the consignor refuse to take back the package and pav for
the return freight and other charges, the package is sold — with or without his being
informed of it — the amount due oeing then deducted from the proceeds of the sale,
and the balance, if any, handed, at his request, to the person entitled to receive it.

The refusal of receiving the package entails the forfeiture of all claim of consignor
and consignee against the administration.

Article 66. — Packages containing goods or things of a highly perishable nature
such as fresh fruit and vegetables, meat, fish, yeast, eta, which, according to circum-
stances, are not called for and taken over within from tiiree to six hours, mav be sold
by the administration in any way it chooses ; the proceeds of the sale, after aeduction
of all dues, are placed at the disposal of the person who has the right to claim them.

If the consignee is unknown, or either cannot be found or refuses to receive the
package, it may be sold in the same way and within the above-mentioned time.

Article 67. — ^The freight of luggage and parcels must be prepaid.

Article 68. — Goods or substances, the conveyance of which by railways or steam
tramways is forbidden or only conditionally permitted (see Articles 696 and 706), explo-
sives, and dangerous substances which, in terms of the " Rules and Regulations for the
conveyance of dangerous goods by railways and steam tramways," are considered as
^ goods for conveyance," can neither be taken by passengers into their carriages nor
be offered or taken for conveyance as luggage or parcela

Railway and steam tramway officials have competent authority to make inquiry
in that respect.

Anyone offering for conveyance, either as luggage or parcels, or under a false
description, goods or substeM:ices of the above-mentioned kind, renders himself respon-
sible tor all the consequences, losses, and damages which may result therefrom.

Section VL
CONVEYANCE OF GOODS.

Article 69. — No conveyance can be obtained for :

(a) Articles which, on account of form, bulk, weight, or other circumstances con-
nected with the traffic arrangements of a railway or steam tramway, are not
transportable.

530 RepMt of Chftftiber Rallwa^v Comtnlttoe.

(&) Substances or articles liable to es:plo6ioii» with the exception of those of which
the conveyance either is allowed in terms of the '' Rules and RegulaticHis for
the conveyance of dangerous goods by railways or steam tramways," or may
hereafter be allowed by Qovemment proclamation.

Article 70. — Are conditionally accepted for conveyance :

(a) Qoods which :

1. On account of their different nature cannot be loaded up with other good&

2. Are not properly packed up.

3. Can dama^ the trucks.

4. Are to be described, with a statement of the conditions attached to the con-

veyance of every particular description.
The railway or steam tramway officials decide which goods are or are not included
in one of the above-mentioned categorie&

(b) Highly inflammable and self-inflammable substances and dangerous goods,

described in the '' Rules and Regulations for the conveyance of dangerous
goods on railways and steam tramways," or which may hereafter be procbimed
as such by the Government.

Article 71. — ^The administration is not compelled :

1. To take goods for conveyance when the available rolling stock is insufficient

to convey the profferea consignments within the usually required time.

2. To find shelter, shed, storehouse, or magazine for deposit and storage of goods

not duly attended to, left behind, or not taken over.

Article 72. — When there is danger of the regular traffic being hindered by a
considerable accumulation of goods at the place of destination, the administration is
authorised— ^as long as the accumulation lasts — to increa^ its charges for storage, de-
murrage, and truck hire, and to shorten the time allowed for loading, off-loading,
delivering, and keeping goods imder its care.

Article 73. — Goods may be conveyed :

(a) As parcels by passenger trains (see Section V).

(b) As colli or consignments of small dimensions, exclusively by goods trains (see

Article 76).
(o) As normal goods at the consignor's risk.

(d) As normal goods at the risk of the administ^ration (see Article 74 and Article

75).

(e) As rough goods (see Article 88).

Article 74. — With due regard to the prescriptions of Articles 21, 22 and 23,
normal goods — at the consignor's request entered on the consignment not&-r--may be
forwarded at reduced rates at the consignor's risk, in which case the freight is churged
according to the reduced tariff rates for the conveyance of normal goods at oonsigtior'iB
risk.

Article 75. — Whenever the value of goods exceeds the amounts specified in the
various tariffs (see Article 26), in addition to the freight charges according to tariff
rates for normal goods conveyed at the risk of the lulministration, the consignment
must be insured in terms of Article 27.

Should such goods be lost or damaged, compensation is given according to Article 33.

Article 76. — Consignments not exceeding a minimum weight are conveyed as
parcels, unless the consignor positively requests their conveyance as normal goods;
consignments exceeding that minimum weight are invariably conveyed as normal
eoods, unless the consignor requests their conveyance as parcels, and provided it can be
done in terms of Article 57.

Report of Chamber Railways Committee. 531

■*^ —

Consignments, in respect of which the distance to be mn over, or the weight does
not correspond to the minimum freight, are conveyed by ^oods trains as " consign-
ments of small dimensions," and charged according to the tariff rates fixed therefor.

A consignment means either one or more than one package of goods, or a lot of
loose goods addressed together by one consignor tp one consignee. The conveyance of
•aggregated goods received from several consignors, or consigned to different persons, is
not allowed. Agents are not held to be either consignors or consignees.

Article 77. — On the consignment note the date and place must be properly
ateted ; it must contain an accurate description of the goods with mention of marks,
numbers, quantity, kind of package, contente and gross weight of every package
separately, as well as the correct address of the consignee, and the place of destination.
Erasures and alterations on the consignment note ought to oe initialed by the
consignor.

All papers and documente accompanying the consignment have to be mentioned
in the consignment note.

Article 78. — By truckload conveyance the consignor may be requested to make
A separate consignment note for every truck.

Article 79. — Goods are held to be taken for conveyance, and the contract to be
binding, as soon as the consignment note is stamped.

Should the consignor require a receipt for goods entrusted to the officers and
aervants of the administration, he must hand over with the goods and the original
'Consignment note a true copy of this note marked ** duplicate," and which is returned
to him. Such duplicate serves only to show that the goods were taken over, but has
not the validity of the original sent with the goods.

Article 80. — Whenever goods are loaded by the consignor and off-loaded by the
<X)nsignee, according to the prescription of these " Rules and Regulations," to the
tariff, or the terms of a special agreement, the mention on the consignment note of the
weight and quantity of goods cannot be taken as evidence against the administration,
inasmuch as no re-weighing of the goods of which the consignment consists has token
place, and as long as the number of packages (colli) or their weight as shown by the
weight stomp of the forwarding station, is not mentioned on the consignment note.

Article 81. — Whenever no stotement of weight occurs on the consignment note,
the goods are weighed before conveyance, and a weighing charge is made according to

tariff.

Article 82. — Should there be any doubt as to the accuracy of the weights stoted
on the consignment note, the goods may be re-weighed before conveyance.

If, by re- weighing, the stated wei^ts are shown to be inaccurate, the consignment
-is liable to the weighing charge mentioned in Article 81, as Well as to extra freight in
of Article 84.

Article 83. — No weighing charge is reckoned :

^a) When the weight of a consignment under 100 lbs. is not stated.
,6) When the re- weighing shows the accuracy of the stated weight.

Article 84. — ^Upon discovering, either at the time of forwarding or later, that
the actual weight of a consignment exceeds the stated weight, extra freight is charged
for the excess weight at three times the amount of the tariff rate, always under
Mtervation, as well of the prescriptions of Article 95, as of the right of claiming com-
'pensation for ooste and damages, if the canying power of a truck is exceeded.

Article 85.— At the consignor's request, me administration is bound to take an
accurate account of the number of packages (colli) or of the weight of the goods, if

532 Report of Chamber Railways Committee.

' - ■

this can be done without causing; any detrimental delay» and the station is provided
with the required weighing appliances.

The consignor, in that case, incurs the weighing charge mentioned in Article 81.

Article 86. — When the account of the number and weight of packages {colli) is
not taken by the administration — which appears from the fact that the consignment
note bears no weight stamp — the number and weight require no other evidence of
their accuracy than a reference to their consignment note.

Article 87. — ^Piece goods, if not of such kind as to render this prescription
impracticable, must have attached to them by the consignor the name of the consignee
and of the station of destination, besides distinct particular marks or numbers, which
must also be mentioned on the consignment note.

Article 88. — Rough goods mentioned as such in the tariffs are charged for
fi-eight according to the rates of the tariff for rough goods, when the weight of the
consignment is not less than 10,000 lbs.

They are, as a rule, conveyed in open trucks ; and, to prevent any damage arising
therefrom, the consignor may, at his own cost and his own risk, protect the» with
covering sheets.

Lime cannot be conveyed otherwise than covered with sheets, provided ^ther by
the consignor or by the administration at the consignor's expense.

Article 89.— Goods are freighted according to weight or (fimension, 1 cubic foot
being held to be equivalent to 25 lbs.

Article 90. — ^The freight charge is reckoned upon twice the actual weight fior
goods which, on account oi their nature, form, weight, etc., or in consequence of
the way they are packed up, it is difficult to handle ; and for goods, such as glassware,
fruit in baskets, etc., upon which no other goods can be placed without damaging
them.

' Article 91. — By " loading " is understood the transfer of goods from the loading
place of the administration to the railway trucks ; and, by '' off-loading," the transfer
of goods from the railway trucks to the loading place of the administration.

Article 92. — Explosives of which the conveyance is allowed, either by the
" Rules and Regulations for the conveyance of dangerous goods on railways and steam
tramways," or by Government's Resolution, must be loadra and off-loaded on the most
distant siding, as far as possible from all buildings and all objects susceptible to catch
fire, and on places where there is no danger of collision with trains or vehicles.

Article 93. — The consignors of such goods must, at least 24 hours beforehand^
inform the stationmaster (at the forwarding station) of the intended consignment

Those goods can onlv be brought over to the station within two hours before the
departure of the train by which they are to be conveyed ; and they must,, on th^
reaching the station, be at once loaded, by the consignor or by his direction^ in the
truck destined to their conveyance.

Article 94. — The consignee is bound to off-load and take away those goods as
soon as they arrive. If he is not there at the time and nobody else has come in his
name, the consignment is at once conveyed to a distant place where, on his account
and )inder his responsibility, it is left at the disposal of the cons^^ee, who is advised
of it by the administration.

Article 95. — Whenever it is found that the consignor has overloaded a tradc»
he must pay for every overloaded truck an extra charge of £3 per distance of
50 miles or part thereof, besides the charges for excess weight and compensation for
damage mentioned in Article 84.

Report of Chamber Railways Committee. 633

^ Article 96. — Goods are conveyed "carriage paid " or "to pay/* at the consignor's
choice ; if necessary, however, the administration has the right to exact payment
beforehand of freight and other chargea

Prepayment is always required in the case of goods or substances :

(a) Mentioned in the " Bules and Regulations for the conveyance of dangerous

goods on railways and steam tramwaya"

(b) Which, in the judgment of the railway official, are likely to get spoiled

within a short time.

Article 97. — Qoods are received for conveyance, and delivered to consignees
every day — Sundays excepted — at certain hours, which are later to be made kno¥ni.

The administration is not, however, compelled to receive goods for the oon-
veyatice of which there are no wagons available.

Article 98. — The consignee whose name appears on the consignment note, is
advised, by post if necessary, of the goods' arrival at the place of destination, the
costs thereof being charged to the consignment

Article 99. — ^The consignor is bound to give the consignee timely information
as to the time of forwarding, and the expected time of arrival of goods which, if not
duly called for, would be liable to damage, spoiling, or decrease of weight

Article 100. — The delivery of the consignment takes place when the consign-
ment note is returned and the delivery stamp affixed to it ; or when a receipt or
discharge is given for the goods, the freight ana other charges are paid for (if their
payment was not made at the forwarding station), and the covered sheets eventually
hired are returned.

Article 101. — Whenever the Administration :

(a) Sends a wagon to fetch goods from the premises of the consignor, this is

done at his own cost and his own risk.
(6) Sends a wagon to deliver goods to the premises of the consimee, the off-
loading from the wa^n and the storing of the goods in cellars or store-
houses take place at the cost and risk of the consignee.
Article 102. — If the consignee thinks that the consignment is damaged or does
not agree with the consignment note, he has the right to require its conaition to be
verified at once by the railway official in presence of two witnesses.

Article 103. — If the goods are loaded by the consignor or his agent, he is him-
self responsible for damage done, through the goods, to the rolling stock and plant,
during the time of loading and in transit; and the consignee assumes the same
responsibility during the time of off-loading, if the goods are off-loaded by him orhis
agent

SECTION VII.

CONVEYANCE OF LIVE-STOCK, CORPSES, AND VEHICLES.

Article 104 — Horses, mules, and cattle are conveyed in open trucks, upon
prepayment of the freight charges according to tariff ratea

The administration decides how many animals can be conveyed by a train, and
by what train the conveyance is to take place.

For consignments at intermediate stations, previous arrangements are to be made
by the stationmaster.

532 Report of Chamber Railways Committee.

this can be done without cauaing any detrimental delay, and the station is provided
with tiie requirod weighing appliances.

The cou»gnor, in that case, incurs the weighing ch&rge mentioned in Article SL

Abticu; 86. — When the account of the number and wei^t of packages (cotU) is
not taken by the administration — which appears from the fact that the conaiennient
Qote betu^ no weight stamp — the number and weight require no other evi£noe of
their accuracy than a reference to their conBignment not«.

Article 87. — Piece goods, if not of such kind as to render this prescriptim
impracticable, must have attached to them by the consignor the name of the consigaee
and of the station of destination, besides distinct particular marks or numbers, which
must also be mentioned on the consignment note.

Article 88. — Bough goods mentioned as such in the tari^ are charged for
ft-eight according to the rates of the tariff for rough goods, when the weight of the
conNignment is not less than 10,000 lbs.

They are, as a rule, conveyed in open trucks ; and, to prevmt any dama^ arisi^
therefrom, the consignor may, at his own cost and his own risk, protect tbem with
covering sheets.

Lime cannot be conveyed otherwise than covered with sheets, provided nther l^
the consignor or by the Eidministration at the consignor's expense.

Article 89.^])oods are freighted according to weight or iSmensioa, 1 cubic foot
being held to be equivalent to 25 lbs.

Article 90, — The freight charge is reckoned upon twice the actual weight for
goods which, on account m their nature, form, weight, etc., or in consequence of
the way they are packed up, it is difficult to handle ; and for goods, such as glasswan^
fruit in baskets, etc, upon which no other goods can be placed without damaging
them.

" Article 91. — By " loading " is understood the transfer ofgoods from the loading
place of the administration to the railway trucks ; and, by " ofi-loading," the transfer
of goods from the railway trucks to the loading place of the administration.

Article 92. — Explosives of which the conveyance is allowed, either by the
" Rules and Regulations for the conveyance of dangerous goods on railways and steam
tramways," or by Government's Resolution, must be load^ and off-loaded on the most
distant siding, as far as possible from all buildings and all objects susceptible to catdi
&re, and on places where there is no danger of collision with trains or vehicles.

Article 93. — The consignors of such goods must, at least 24 hours beforehand,
inform the stationmaster (at the forwarding station) of the intended consignmenL

Those goods can only be brought over to the station within two hours before the
departure of the train by which they are to be conveyed ; and they must, on_ thair
reaching the station, be at once loaded, by the consignor or by his dlrectia% in tbt
truck destined to their conveyance.

Article 94. — The consignee is bound to off-load and take away those goods «
soon as they arrive. If he is not there at the time and nobody else has come in ha
name, the consignment is at once conveyed to a distant place where, on his sccouat
and pnder his responsibility, it is left at the disposal of the consignee, who i» adv'iae^
of it by the administration.

Article 95. — Whenever it is found that the consignor has overloaded a (^4^
he must pay for every overloaded truck an extra cl^r^ of £3 per dwlMioft >
50 miles or part thereof, besides the charges for excess weight and coDipeiia*li«x ^ ^
damage mentioned in Article 84.

Report o{ Chamber Railways Committee. 533

^ Abticle 96. — Goods are conveyed "carriage pud " or "to pay," at the cocsij^or's
choice ; if necesaary, however, the admimstratim has Qie right to exact payment
beforehand of freight and other charges.

Prepayment is always required in the case of goods or snbstanceB :

(a) Mentioned in the " Roles and Regulations for the conveyance of dangerous
goods on railways and steam tramways."

(6) Which, in the judgment of the railway official, are likely to get spoiled
within a short time.

Aeticle 97. — Goods are received for conveyance, and delivered to consignees
every day — Sundays excepted — at certain hours, which are later to be made known.

The administration is not, however, compelled to receive goods for the con-
veyance of which there are no wagons available.

Abticle 98. — The consignee whose name appears on the consignment note, is
advised, by poet if necessary, of the goods' arrivu at the place of destination, the
costs thereof being charged to the consignment.

Article 99. — The consignor is bound to give the consignee timely information
as to the time of forwarding, and the expected time of arrival of goods which, if not
duly called for, would be liable to damage, spoiling, or decrease of weight.

Article 100.^ — ^The delivery of the consignment takes pisce when the consign-
ment note is returned and the delivery stamp affixed to it ; or when a receipt or
discharge is given for the goods, the freight and other charges are paid for (if their
payment was not made at the forwarding station), and the covered sheets eventoally
hired are returned.

Article 101. — Whenever the Administration :

(a) Sends a wagon to fetoh goods from the premises of the consignor, this is

done at his own cost and his own risk.

(b) Sends a wagon to deliver goods to the premises of tiie consignee, the off-

loading from the wagon and the storing of the goods in celwv or store-
houses take place at Oie cost and risk of the consignee.
Article 102. — If the consignee thinks that the consignment is damaged or does
not agree with the consignment note, he has the right to require its condition to be
verified at once by the railway official in presence of two witnesses.

Article 103. — If the goods are loaded by the consignor or his agent, he is him-
self responsible for damage done, through the goods, to the rolling stock and plant,
daring the time of loading and in transit; and the consignee asaumes tiie same
responsibility dmiog the time of off-loading, if the goods are off-loaded by him orhia
agent.

£34 Report of Chftfnber Railways Comtnittee.

Abticle 105. — live-stock is nofc taken for conveyance, unless under the care of
an attendant If the consignment freight is equivalent to 4,000 lbs. normal goods at
consignor's risk, the attendant is conveyed without cost on the truck loaded with ihe
animal&

This prescription does not apply to consignments of either the small-sized
animals named in Article 110 or of animals consigned singly.

Article 106. — ^With due regard to the prescriptions of Article 25 e,(l and 3), the
loading and tying of live stock is left to the care and responsibility of the consignor,
and the untying and off-loading to the care and responsibility of the consignea

Abticle 107. — The consignor is responsible for damage done by animals to the
rolling-stock or plant of the administration, while loading and tying, unless the
damage result irom the bad or unsatisfactory condition of the rolung-stock or
plant; and the same responsibility attaches to the consignee, while untying and
off-loading.

Abticle 108. — Animals which have died in transit, or before delivery, must,
nevertheless, be taken over by the consignee, save his right, if he has any, of claiming
compensation. The circumstance is stated on the consignment stamped for delivery,
or a separate statement in writing is given to him.

Article 109. — ^The administration may refuse to convey : —

(a) Sick animals.

(6) Savage, wild, or vicious animal&

Should, however, animals of this description be taken for conveyance, they are
conveyed altogether under the whole responsibility of the consignor, on prepayment
of the freight charges, provided that such animals as are mentioned under 6, are
placed in sufficiently strong cages..

Article 110. — Live animals of small size, such as monkeys, dogs, cats, fowls,
rabbits, small birds, etc, are, under the responsibility of the consignor and on
prepayment of the freight charges, taken for conveyance in boxes, cages, crates, or
baga

Article 111. — ^The consignor of live-stock is bound to give the consignee timely
notification of the time of forwarding the consignment and the expected time of
arrival.

Article 112. — If it can be done conveniently, the administration may place
goods in trucks wherein live-stock is being conveyed.

Article 113. — Corpses may be conveyed by all trains upon prepayment of the
tariff charges, if properly inclosed in coffins so as to cause no hmdrance to the
passengers.

Article 114. — Any corpse not taken away within three hours after arrival of
the train at the place of destination, is placed at the disposal of the polica

Article 115. — Goods may be loaded, on account and at the risk of the con-
signor, in vehicles forwarded on railway or steam-tramways.

The aggregate weight of the vehicle and its contents must not exceed the
<»rrying power of. the railway or steam-tramway truck on which they are conveyed.

The ireight charges for goods so conveyed are calculated at the rates of the tariff
for normal goods at consignor's risk.

Article 116. — In connection with the prescriptions of Article 25 g, vehicles are
loaded by and under the responsibility of the consignor, and they are off-loaded by
and imder the responsibility of the consignee.

Report of Chamber Railways Committee. 535

It is the duty of the consignor to see that the vehicle stands fast on the railwav
or steam-tramway truck, and to provide the required wedges, spikes and rope— all
this to the satisfaction of the railway official whom it may concern.

Article 117. — Whenever in loading live-stock and vehicles, help is asked for
and can be ^ven, the railway or steam-tramway servants will lend gratuitous
assistance to the. consignor in loading, and to the consignee in off-loading.

Proposed, at Pretoria, the 14th December, 1892.

The Railway Commissioner,

J. S. SMIT.

Sanctioned at Pretoria, the 10th January, 1893.
In the name of the Government,

Dr. W. J. LEYDS,

State Secretoury.

536 Report of Chamber Railways Committee.

NATAL-NETHERLANDS AGREEMENT.

Agreement dated Third Day of February, 1894, between the Natal Qovem-
ment and the Transvaal Government : — '

Whereas the Govei*nment of the South African Republic and the Government of
the Colony of Natal are mutually desirous of immediately extending railway com-
munication, now terminating at Charlestown, in the Colony of Natal, to Johannes-
burg and Pretoria, in the South African Republic,

And Whereas an agreement was, on the 25th day of November, 1892, entered
into between the Government of the South African Republic and the Government of
the Colony of Natal, providing for the survey of the said railway extension.

And Whereas the detail survey of the said railway extension has been
completed.

And Whereas the Honourable the First Volksraad of the South African
Republic did, by resolution, on the 26th day of Aumist, 1893, approve of the building
and construction of the said railway extension, ana authorised the Government wit£
the advice and consent of the Executive Council to take steps for the carrying out of
the said resolution.

And Whereas the Government of the South African Republic with the advice
and consent of the Executive Council, as aforesaid, did on the 4th day of January,
1894, finally decide upon the construction of the said railway extension,

Now further, it is hereby agreed as follows : —

Article 1. — ^That the Government of the Colony of Natal shall immediately
extend its line of railway from Charlestown, at the border of the Colony of
Natal and the South African Republic

Article 2. — That the Government of the South African Republic shall with all
possible speed construct, equip and work or cause to be constructed,
equipped, and worked, a line of railway from the terminus of the Natal
Government Railways on the border via the towns of Volksrust, Standerton,
and Heidelberg, to the station at Elsburg, or such other point of the line of
railway between Vereeniging and Elandsfontein as may be chosen by the
Government of the South African Republic, provided always that the
through distance to Johannesburg and Pretoria, as already surveyed shall
not be materially increased.

Article 3. — That the construction and equipment of- the lines of railway referred
to in Articles 1 and 2 shall be in all respects of equality as regards stability
and efficiency with the best constructed lines of railway in the Colony of
Natal and the South African Republic, and serviceable for the conveyance of
heavy and fast traffic

Article 4. — That the work of constructing the line of railway referred to in
Article 2 shall be commenced from the Natal and JohannesDurg ends imme-
diately, and that in order to accelerate the completion of the work the line

Report of Chamber Railways Committee. 537

of railway from Delagoa Bay shall be utilised to convey the rails and other
materials for the construction from Delagoa Bay to the point of junction on
the line from Charlestown to Elandsfontein as soon as such line of railway
is sufficiently completed to permit of this being done. And it is hereby further
agreed that the aforesaid line of railway from Charlestown shall be com-
pleted and opened for public traffic to Johannesburg and Pretoria if possible
by the 31st July, 1895, but not later than the 31st December, 1895, and that
as soon as the line can possibly be made fit for traffic it shall be opened in
sections from Charlestown to Standerton and Heidelberg respectively in
anticipation of the opening of the line throughout.

Article 5. — That the Government of the Colony of Natal binds itself not to
construct or work any extension of the line of railway from Ladysmith to
Harrismith which joins on any point to the north of Kroonstad to the now
existing line of railway through the Orange Free State.

Article 6. — That near the boundary there shall be provided a joint station,
where the services of the Natal Bi^ilway administration shall terminate and
the services of the South African Qovemment Railway administration shall
commence. The site of this station to be at the option of the South African
Republic, and the buildings to be desired by one or other of the administra-
tions, as may be arranged in conjunction with the other.

Article 7. — ^That the two contracting Governments bind themselves to promote
in every way the practical and expeditious working of the through traffic
from places in the Colony of Natal to places in the South African Republic,
and from places in the South African Republic to places in the Colony of
Natal, and to grant to each other all usual and useful facilities for the inter-
change, development, and satisfactory working of the traffic.

Article 8. — That in order to promote efficient co-operation, an agreement shall
be entered into between the two railway administrations, subject to the
approval of the respective Governments, having regard to the following
points : —

A. The conditions for the use by the one administration of the line of railway

from the boundary to the joint station near the boundary, and for the
common use of the said station.

B. Regulations for the interchange of rolling-stock and goods in through

traffic, payment for hire of romng-stock, we through traffic in passengers,
goods, animals, articles, and the facilities for loading and unloading,
collection and delivery of goods, the system for dividing and accounting
for the proportions of fares and freights due to the respective adminis-
trations, and all other particular details which are necessary to secure
efficient and economical working.

C. The harmonising of the systems whereby the rolling-stock of the respec-

tive administrations, with their " continuous brake ' and other appliances
may conveniently couple and interchange with each other.

D. The mutual assistance to be rendered by the one administration to the

other, in the matter of stock, labour, and other matters in which such
mutual assistance would be possible and beneficial.

Article 9. — That the running of the trains of both lines of railway shall be so
regulated as to avoid unnecessary delay, and so as to effect the best possible
through service.

538 R^iort of Chamber Railways' Committer

Article 10. — That the consigiiinent notes for through traffics shall be drawn up-
by both railway administrations in conjunction with one another, and shall
be drawn up in both English and Dutch.

Article 11. — That the railway administration of each Qovemmenit shall fix the
rates applicable to its own line, and in the case of the route via Volksrust
the through charges for goods traffic from Port Natal to Johannesburg and
Pretoria ^all be the sum of the two administration rates, provided always :
that the rates for ordinary goods per mile and per ton of 2,000 lbs. shall not
exceed 6d. per mile and per ton, and shall not be lower than 3d. per mile and
per ton ; and the rates for rough goods {i,e. coal, quartz of a less value than
£45 per ton, unmanufactured wood in quantities of at least five tons) shall
not exceed 3d. per mile and per ton, and shall not be lower than l^d. per
mile and per ton.

Article 12. — That if the through rates from Port Natal to Johannesburg and
Pretoria upon the aforesaid basis shall become higher than the rates from
Delagoa Bay to Johannesburg and Pretoria in proportion to the mileage of
the lines of both administrations, then the through rates from Port Natal to
these places shall, after consultation between the two railway administrations,
be reduced to the proper proportions, but neither of the two administrations
shall be bound to accept lower rates than the minimum rates specified in
Article 11 ; but the rates from Port Natal to Johannesburg shall not, in any
case, be more than 20 per cent, higher than the corresponding rates from
Delagoa Bay to Johannesburg, and the rates from Port Natal to Pretoria
shall not, in any case, be more than 40 per cent, higher than the rates from
Delagoa Bay to Pretoria.

Article 13. — That should any circumstances arise which may necessitate the
re-consideration of the rates and other arrangements herein set forth in
connection with the promotion of the traffic, either administration may at
any time call upon the other administration for consultation, with the view
of making the necessary alterations.

Article 14. — ^That the Government of Natal binds itself to fix the rates to be
charged on its lines in the Colony of Natal (subject always to its existing
obligations), and on railways worked by it in other States, in such manner
that the sum of the rates charged by the railway administrations of Natal
and the South African Republic shall not be lower than the rates per mile
and per ton of the traffic from Delagoa Bay to Johannesburg and Pretoria^

Article 15. — That the rates for the conveyance of passengers over the lines of
both administrations shall not exceed the following: — First class, 3d. per
mile ; lowest class, 2d. per mile.

Article 16. — ^That the Government of the Colony of Natal binds itself to charge
on goods from foreim ports, and destined for places in the South African
Republic, dues which are not higher than the transit duties which are now
in force or lower than the transit duties at Delagoa Bay ; and the Qovemment
of the South Airican Republic shall afibrd to the Qovernment of Natal all
trade facilities which may have been or may be granted to any other
Government.

Article 17.— That the two contracting parties bind themselves to co-operate in
every way for the substantial and expeditious and speedy construction of the
line of railway referred to in Article 2, and the Government of the Colony

Report of Chamber Railways Committee. 539

of Natal shall convey over its existing lines all materials, goods and things
necessary for the construction and working of the aforesaid railwav, with
the least possible delay, at the rate of Ij^. per ton per mile, and shall admit
all such materials free of customs and transit duties.

Article 18. — ^That in the event of it being found that either of the routes by
Delagoa Bay or Charlestown is carrying a share of the gross goods traffic
from the seaboard to Johannesburg and Pretoria, which shall exceed one-half
or be less than one-third of such gross eoods traffic, the two contracting
Qovemments agree that, upon the application of either, a further conference
shall take place for the purpose of re-considering the rates and making such
re-adjustment thereof as shall be calculated, to a more equitable division of
the traffic carried by both routea

Article 19. — ^That it shall be understood between the two contracting Qovem-
ments that they shall work toother in a spirit of amity and friendship, for
the promotion of the traffic between the South African Republic and the
ports of Delagoa Bay and Natal, and all the provisions of this agreement
shall be construed in the sense of the said understanding.

Article 20. — ^That any dispute or question arising out of this agreement shall be
referred to arbitration, each Qovemment to appoint one aroitrator, and the
two arbitrators so appointed to appoint a third, and if the said two
arbitrators shall not agree upon the selection of the third arbitrator, then the
Chief Justice of the South African Republic, upon application made by either
partv, shall appoint a third such arbitrator, and the award of the majority
shall be final.

Article 21. — This agreement is subject to the approval of the Government of
the South African Republic.

Article 22. — This agreement is subject to the approval of the Qovemment of
the Colony of !Natal on or before the 20th day of February, 1894.

I 2

IV,

Mr. Dougall's Letter on the Netherlands

Railway Company.

Pretoria, 29th May, 1897.
The Chuirman,

The Industrial Commission of Inquiry,

Johannesburg.

Hon. Sir, — Let me first state that I would not have ventured upon writmg to yon
had I not realised, after receiving a letter from the Secretary of your Hon. Commission,
reading as follows :

" S^aar aanleiding van uw schrijven d.d. 24sten Mei is mij opgedragen UEd. te
informeeren dat ingevolge publicaties in de couranten gemaakt, de tijd voor
applicaties ten einde getuigenis te geven, reeds verstreken is " —
that I had no alternative now but to do so ; and, further, had I not keenly felt that,
while the Government is sincerely desirous to get at the root cause of all these com-
plaints and dissatisfaction with the Netherlands Railway Company, and a great deal
of light has been thrown on the general question, yet the real &:st cause has not been
got at and laid bare to all.

I now beg to lay before your Honourable Commission a table showing heavy
overcharges by the Netherlands Railway Company for the carriage of through goods
from the ports, from the Mid-Vaal River Bridge to Elandsfontein, Boksburg, Johan-
nesburg, Krugersdorp, and Pretoria, as follows : —

Intermediate Goods. Rough Goods.

To Elandsfontein ... 5a 8d. per ton. 10s. lid. per ton. 19a 6d. per ton.
„ Boksburg 6a Od. „ „ 12a Od. „ „ 18a Od. „ „

Normal Goods.

5a 8d.

per

ton.

6a Od.

7a 4d.

6a 2d.

• mm

„ Johannesburg .. 7a 4d. „ „ 13a lOd. „ „ 20a 4d. „ „

„ Krugersdorp ... 6a 2d. „ „ 15a Od. „ „ 18a lid. „ „

„ Pretoria 4a 4d. „ „ 14a Id. „ „ 22s. 2d. „ „

To make the position plain it will be needful that we should go back to June, 1890,
when the railway concession^granted to the Netherlands Company by the Govern-
ment, was confirmed by the Elon. Volksraad of this State. In granting the concessires,
beyond the natural and legitimate desire to have railway communication with Delagoa
Bay, no ulterior motive prompted the Government and Volksraad, and they insisted
on the perfectly fair principle of equitable tariffs for the transport of persons and good&
The Tiidxirrium rates were specified, and Article 19 distinctly bound the concessionaire

Mr. Dougairs Letter. 541

** to convey, without distinction and without partiality, whatever shall be offered for
conveyance, subject to the general exceptions providea for." There was no distinction
made in the concession as between the " through traffic from the ports " and the " local
traffic." Transport-riding with the ox- wagon was done for, and the Government and
Yolksraad took good care that the railway company, while having a monopoly of the
transport business in the land should carry it on on strictly fair terms, and within
certam clearly defined Umits. The farmers, mining companies, and merchants in the
southern, central, and western districts were to have their through goods carried over
the railway from Viljoen's Drift at the same or equivalent rates per ton per mile as
the farmers and merchants in Standerton, Ermelo, Heidelberg, and Pretoria from
Volksrust, and the mining companies and farmers in Barberton, Lydenburg, Middel-
l3urg, and Zoutpansberg fiom Komatie Poort.

The Netherlands Railway Company had got a very good thing. From Delagoa
Bay to Johannesburg did not exceed 400 miles, as against, say 500 miles from Durban,
•670 miles from East London, and 720 miles from Port Elizabeth. What was there to
fear from competition by the Colonial lines, once the Netherlands Railway was in com-
plete working order from Delagoa Bay ?

But, in time the competition became keen and still keener, more so than the
Netherlands Company cared to meet on fair terms within the four corners of their
•concession. And so it was, because of the company's inability to run their railway
43atisfactorily on fair terms to all, or because of their insensate greed, which would
not let them act fairly and secure their position with the good-will and assistance of
all in the State, they misled the Government and secured the closing of the Vaal River
drifts, that first act in the woeful chapter of sad events which has brought about the
present strained position in South Africa.

I should like to make reference here to one or two statements made by Mr.
Middelberg to your Honourable Commission.

1. He stated that " The accusation, that the tariffs from the ports to Johannes-
burg are higher by our taking a greater share of the profits than they would be if we
^tccepted a lower share, is devoid of foundation" And he attempted to make this
•clear by the illustration of two individuals deciding to build a house, and providing
the necessary funds therefor. And when the rental of that house has been fixed it is
certainly a matter of indifference to the tenants of the house what shares of the rent
each of the two owners receivea

And Mr. Middelberg alleged that
"' This is exactly the same in the case of the shares of carriage received by each of the

administrations in the traffic with the ports."

In reply to Mr. Albu, Mr. Middelberg maintained that the consignees or owners
of the goods had very little to do with what the Netherlands Company got as its share
of the carriage from the ports to Johannesburg.

Now, it is just on this vitally important point that the whole matter depends.
Mr. Middelberg's illustration is not complete. In the event of complaints preferred
and enquiry made thereinto, the Netherlands Railway Company is bound to make
answer and give account to the Government in fullest detail of its dealings with
the farmers, mining companies, and merchants in the Republic. Your Honourable
•Commission has been appointed for this very purpose. And it does concern the
<jovemment and ourselves very much to know what the Netherlands Railway Com-
pany receives as its share for carriage of the through traffic from the ports. And I
maintain that under cover of the agreement with the Cape Railway administration in
respect of the through traffic from the ports to Johannesburg and elsewhere, the
Netherlands Railway Company receives and appropriates a larger share than it is

532 Report of Chamber Railways Committee.

this can be done without causing any detrimental delay, and the station is provided
with the required weighing appliances.

The consignor, in that ease, incurs the weighing charge mentioned in Article 81.

Article 86. — When the account of the number and weight of packages (colli) is
not taken by the administration — ^which appears from the fact that the consignment
note bears no weight stamp — the number and weight require no other evidence of
their accuracy than a reference to their consignment note.

Article 87. — Piece goods, if not of such kind as to render this prescripticHi
impracticable, must have attached to them by the consignor the name of the consignee
ana of the station of destination, besides distinct particmar marks or numbers, which
must also be mentioned on the consignment note.

Article 88. — Rough goods mentioned as such in the tariffs are charged for
fi-eight according to the rates of the tariff for rough goods, when the weight of the
conHignment is not less than 10,000 lbs.

They are, as a rule, conveyed in open trucks ; and, to prevent any damage arisii^
therefrom, the consignor may, at his own cost and his own risk, protect tbei» with
covering sheets.

Lime cannot be conveyed otherwise than covered with sheets, provided either hf
the consignor or by the administration at the consignor's expense.

Article 89.— -Ooods are freighted according to weight or cBmension, 1 cubic foot
being held to be equivalent to 25 lbs.

Article 90. — ^The freight charge is reckoned upon twice the actual weight for
goods which, on account of their nature, form, weight, etc., or in consequence of
the way they are packed up, it is difficult to handle ; and for goods, such as glassware,
fi*uit in baskets, etc., upon which no other goods can be placed without damaging
them.

* Article 91. — By " loading " is understood the transfer of goods from the loading
place of the administration to the railway trucks ; and, by ''off-loading," the transfer
of goods from the railway trucks to the loading place of the administration.

Article 92. — Explosives of which the conveyance is allowed, either by the
" Rules and Regulations for the conveyance of dangerous goods on railways and steam
tramways," or by Qovemment's Resolution, must be loaded and off-loadea on the most
distant siding, as far as possible from all buildings and all objects susceptible to catdi
fire, and on places where there is no danger of collision with trains or vehicles.

Article 93. — The consignors of such goods must, at least 24 hours beforehand,^
inform the stationmaster (at the forwarding station) of the intended consignment

Those goods can only be brought over to the station within two hours before the
departure of the train by which they are to be conveyed ; and they must,, on their
reaching the station, be at once loaded, by the consignor or by his direction in the
truck destined to their conveyance.

Article 94. — The consignee is bound to off-load and take away those goods as
soon as they arrive. If he is not there at the time and nobody else has come in his
name, the consignment is at once conveyed to a distant place where, on his account
and pnder his responsibility, it is left at the disposal of the consignee, who is advised
of it by the administration.

Article 96. — Whenever it is found that the consignor has overloaded a trucks
he must pay for every overloaded truck an extra charge of £3 per distance of
50 miles or part thereof, besides the charges for excess weight and compensation for
damage mentioned in Article 84.

Report of Chamber Railways Committee. 533

^ Article 96. — Goods are conveyed ''carriage paid " or "to pay," at the consignor's
choice ; if necessary, however, the administration has the right to exact payment
beforehand of freight and other charges.

Prepayment is always required in the case of goods or substances :

(a) Mentioned in the " Rules and Regulations for the conveyance of dangerous

&;oods on railways and steam tramwaya"

(b) Which, in the judgment of the railway official, are likely to get spoiled

within a short time.

Article 97. — Goods are received for conveyance, and delivered to consignees
every day — Sundays excepted — at certain hours, which are later to be made known.

The administration is not, however, compelled to receive goods for the con*
veyatice of which there are no wagons available.

Article 98. — ^The consignee whose name appears on the consignment note, is
advised, by post if necessary, of the goods' arrival at the place of destination, the
costs thereoi being charged to the consignment.

Eayment was not made at the forwarding station), and the covered sheets eventually
ired are returned.

Article 101. — Whenever the Administration :

(a) Sends a wagon to fetch goods from the premises of the consignor, this is
done at his own cost and his own risk.

(6) Sends a wagon to deliver goods to the premises of the consignee, the off-
loading from the wason and the storing of the goods in cellars or store*
houses take place at the cost and risk of the consignee.

Article 102. — If the consignee thinks that the consignment is damaged or does
not agree with the consignment note, he has the right to require its conaition to be
verified at once by the railway official in presence of two witnesses.

Article 103. — If the goods are loaded by the consignor or his agent, he is him*
self responsible for damage done, through the goods, to the rolling stock and plant,
during the time of loading and in transit; and the consignee assumes the same
responsibility during the time of off-loading, if the goods are off-loaded by him orhis
agent

SECTION VII.

CONVEYANCE OF LIVE-STOCK, CORPSES, AND VEHICLES.

Article 104. — Horses, mules, and cattle are conveyed in open trucks, upon
prepayment of the freight charges according to tariff ratea

The administration decides how many animals can be conveyed by a train, and
by what train the conveyance is to take place.

For consignments at intermediate stations, previous arrangements are to be made
by the stationmaster.

■534 Report of Chamber Railways Committee.

Article 105. — Live-stock is not taken for conveyance, unless onder the care of
an attendant. If the consignment freight is equivalent to 4,000 lbs. normal goods at
consignor's risk, the attendant is conveyed without cost on the truck loaded with the
animals.

This prescription does not apply to consignments of either the small-sized
animals named in Article 110 or of animals consigned singly.

Article 106. — ^With due regard to the prescriptions of Article 25 ^,(1 and 3), the
loading and tying of live stock is left to the care and responsibility of the consignor,
and the untying and off-loading to the care and responsibility of the consigne&

Article 107. — The consignor is responsible for damage done by animals to the
rolling-stock or plant of the administration, while loading and tyin^, unless the
<lamage result from the bad or unsatisfactory condition of the rouing-stock or
plant; and the same responsibility attaches to the consignee, while untying and
off-loading.

Article 108. — ^Animals which have died in transit, or before delivery, must^
nevertheless, be taken over by the consignee, save his right, if he has any, of claiming
compensation. The circumstance is stated on the consignment stamped for delivery,
or a separate statement in writing is given to him.

Article 109. — ^The administration may refuse to convey : —

(a) Sick animals.

(6) Savage, wild, or vicious animal&

Article 110. — live animals of small size, such as monkeys, dogs, cats, fowls,
rabbits, small birds, etc, are, under the respcnsibility of the consignor and on

E repayment of the freight charges, taken for conveyance in boxes, cages, crates, or
aga

Article 111. — ^The consignor of live-stock is bound to give the consignee timely
notification of the time of forwarding the consignment and the expected time of
arrival

Article 112. — If it can be done conveniently, the administration may place
goods in trucks wherein live*stock is being conveyed.

Article 113. — Corpses may be conveyed by all trains upon prepayment of the
tariff charges, if properly inclosed in coffins so as to cause no hmdrance to the
passengers.

Article 114. — Any corpse not taken away within three hours after arrival of
the train at the place of destination, is placed at the disposal of the police.

Article 115. — Goods may be loaded, on account and at the risk of the con-
signor, in vehicles forwarded on railway or steam-tramways.

The aggregate weight of the vehicle and its contents must not exceed the
carrying power of. the railway or steam-tramway truck on which they are conveyed.

The freight charges for goods so conveyed are calculated at the rates of the tariff
for normal goods at consignor's risk.

Article 116. — In connection with the prescriptions of Article 25 g, vehicles are
loaded by and under the responsibility of the consignor, and they are off-loaded by
and under the responsibility of the consignee.

Report of Chamber Railwi^ Committee. 535

It is the duty of the consignor to see that the vehicle stands fast on the railway
or steam-tramway tmck, and to provide the required wedges, spikes and rope-~all
this to the satisfaction of the railway official whom it may concern.

Proposed, at Pretoria, the 14th December, 1892.

The Railway Commissioner,

J. S. SMIT.

Sanctioned at Pretoria, the 10th January, 1893.
In the name of the Qovemment,

Dr. W. J. LEYDS,

State 8ecreta/ry,

536 Report of Chamber Railways Committee.

NATAL-NETHERLANDS AGREEMENT.

Agreement dated Third Day of February, 1894, between the Natal Govern-
ment and the Transvaal Qovemmeht : — '

Whereas the Government of the South African Republic and the Government of
the Colony of Natal are mutually desirous of immediately extending railway com-
munication, now terminating at Charlestown, in the Colony of Natal, to Johannes-
burg and Pretoria, in the South African Republic,

And Whereas the detail survey of the said railway extension has been
completed,

And Whereas the Honourable the First Volksraad of the South African
Republic did, by resolution, on the 25th day of August, 1893, approve of the building
and construction of the said railway extension, and authorised the Government with
the advice and consent of the Executive Council to take steps for the carrying out of
the said resolution.

Now FURTHER, it is hereby agreed as follows : —

Article 1. — That the Government of the Colony of Natal shall immediately
extend its line of railway from Charlestown, at the border of the Colony of
Natal and the South African Republic

AlRTICLE 2. — That the Government of the South African Republic shall with all
possible speed construct, equip and work or cause to be constructed,
equipped, and worked, a line of railway from the terminus of the Natal
Government Railways on the border via the towns of Volksrust, Standerton,
and Heidelberg, to the station at Elsburg, or such other point of the line of
railway between Yereeniging and Elandsfontein as may be chosen by the
Government of the South African Republic, provided always that the
through distance to Johannesburg and Pretoria, as already surveyed shall
not be materially increased.

AlRTICLE 3. — That the construction and equipment of- the lines of railway referred
to in Articles 1 and 2 shall be in all respects of equality as regards stability
and efficiency with the best constructed lines of railway in the Colony of
Natal and the South African Republic, and serviceable for the conveyance of
heavy and fast traffic

Article 4. — That the work of constructing the line of railway referred to in
Article 2 shall be commenced from the Natal and Johannesburg ends imme-
diately, and that in order to accelerate the completion of the work the line

Report of Chamber Railways Committee. 537

of railway from Delagoa Bay shall be utilised to convey the rails and other
materials for the construction from Delagoa Bay to the point of junction on
the line from Charlestown to Elandsfontein as soon as such line of railway
is sufficiently completed to permit of this being done. And it is hereby further
agreed that the aforesaid line of railway from Charlestown shall be com-
pleted and opened for public traffic to Johannesburg and Pretoria if possible
by the 31st July, 1895, out not later than the 31st December, 1895, and that
as soon as the line can possibly be made fit for traffic it shall be opened in
sections from Charlestown to Standerton and Heidelberg respectively in
anticipation of the opening of the line throughout.

Article 5. — That the Government of the Colony of Natal binds itself not to
construct or work any extension of the line of railway from Ladysmith to
Harrismith which joins on any point to the north of Eroonstad to the now
existing line of railway through the Orange Free State.

Article 6. — That near the boundary there shall be provided a joint station,
where the services of the Natal Railway administration shall terminate and
the services of the South African Qovemment Railway administration shall
commence. The site of this station to be at the option of the South African
Republic, and the buildings to be desired by one or other of the administra-
tions, as may be arranged in conjunction with the other.

Article 7. — That the two contracting Governments bind themselves to promote
in every way the practical and expeditious working of the through traffic
from places in the Colony of Natal to places in the South African Republic,
and n*om places in the South African Republic to places in the Colony of
Natal, and to grant to each other all usual and useful facilities for the inter-
change, development, and satisfactory working of the traffic

A. The conditions for the use by the one administration of the line of railway

from the boundary to the joint station near the boundary, and for the
common use of the said station.

B. Regulations for the interchange of rolling-stock and goods in through

traffic, payment for hire of rolling-stock, we through ti^ffic in passengers,
goods, animals, articles, and the facilities for loading and unloading,
collection and delivery of goods, the system for dividing and accounting
for the proportions of fares and freights due to the respective adminis-
trations, and all other particular details which are necessary to secure
efficient and economical working.

c. The harmonising of the systems whereby the rolling-stock of the respec-
tive administrations, with their " continuous brake ' and other appliances
may conveniently couple and interchange with each other.

D. The mutual assistance to be rendered by the one administration to the
other, in the matter of stock, labour, and other matters in which such
mutual assistance would be possible and beneficial.

Article 9. — ^That the running of the trains of both lines of railway shall be so
regulated as to avoid unnecessary delay, and so as to effect the best possible
through service.

538 Re^rt of Chamber Railways' Cdmmittee:

Article 10. — That the consigninent notes for through traffics shall be drawn up
by both railway administrations in conjunction with one another, and shaJ^
be drawn up in both English and Dutch.

Article 15. — That the rates for the conveyance of passengers over the lines of
both administrations shall not exceed the following: — First class, 3d. per
mile ; lowest class, 2d. per mile.

Article 16. — That the Government of the Colony of Natal binds itself to charge
on goods from foreign ports, and destined for places in the South African
Republic^ dues which are not higher than the transit duties which are now
in force or lower than the transit duties at Delagoa Bay ; and the Government
of the South African Republic shall afford to the Government of Natal all
trade facilities which may have been or may be granted to any other
Government.

Article 17.— That the two contracting parties bind themselves to co-cmerate in
every way for the substantial and expeditious and speedy construction of the
line of railway referred to in Article 2, and the Govenmient of the Colony

Report of Chamber Railways Committee. 539

of Natal shall convey over its existing lines all materials, goods and thii^
necessary for the construction and working of the aforesaid railwav, with
the least possible delay, at the rate of l^d per ton per mile, and shall admit
all such materials free of customs and transit dutie&

Article 18. — ^That in the event of it being found that either of the routes by
Delagoa Bay or Charlestown is carrying a share of the gross goods traffic
from the seaboard to Johannesburg and Pretoria, which shall exceed one-half
or be less than one-third of such gross eoods traffic, the two contracting
Governments agree that, upon the application of either, a further conference
shall take place for the purpose of re-considering the rates and making such
re-adjustment thereof as shall be calculated, to a more equitable division of
the traffic carried by both routea

Article 20. — ^That any dispute or question arising out of this agreement shall be
referred to arbitration, each Qovernment to appoint one aroitrator, and the
two arbitrators so appointed to appoint a third, and if the said two
arbitrators shall not agree upon the selection of the third arbitrator, then the
Chief Justice of the South African Republic, upon application made by either
partv, shall appoint a third such arbitrator, and the award of the majority
shall be final.

Article 21. — ^This agreement is subject to the approval of the Government of
the South African Republic.

Article 22. — ^This aCTeement is subject to the approval of the Qovernment of
the Colony of Natal on or before the 20th day of February, 1894.

I 2

IV,

Mr. Dougall's Letter on the Netherlands

Railway Company.

Pretoria, 29th May, 1897.
The CTvairmarif

The Industrial Commission of Inquiry,

Johannesburg.

Hon. Sir, — Let me first state that I would not have ventured upon writing to you
had I not realised, after receiving a letter from the Secretary of your Hon. Commission,
readily as follows :

" Naar aanleiding van uw schrijven d.d. 24sten Mei is mij opgedragen UEd. te
informeeren dat ingevolge publicaties in de couranten gemaakt, de tijd voor
applicaties ten einde getuigenis te geven, reeds verstreken is " —
that I had no alternative now but to do so ; and, further, had I not keenly felt that,
while the Government is sincerely desirous to get at the root cause of all these com-
plaints and dissatisfaction with the Netherlan(b Railway Company, and a great deal
of light has been thrown on the general question, yet the real &:st cause has not been
got at and laid bare to all.

Normal Goods. Intermediate Goods. Rough Goods.

To Elandsfontein
„ Boksburg ...
„ Johannesburg
„ Krugersdorp
„ Pretoria

5s. 8d. per ton. 10s. lid. per ton. 19a 6d. per ton.

6s. Od. „ „ 128. Od. „ „ 18a Od. „ „

7a 4d. „ „ 13a lOd. „ „ 20a 4d. „ „

6a 2d. „ „ 15a Od. „ „ 18a 114 „ „

4a 4d. „ „ 14a Id. „ „ 22a 2d. „ „

To make the position plain it will be needful that we should go back to June, 1890,
when the railway concession^granted to the Netherlands Companjr by the Govern-
ment, was confirmed by the Elon. Volksraad of this State. In granting the conceasires,
beyond the natural ana legitimate desire to have railway communication with Delagoa
Bay, no ulterior motive prompted the Government and Volksraad, and they insisted
on the perfectly fair principle of equitable tariffs for the transport of persons and gooda
The maxirmim rates were specified, and Article 19 distinctly bound the concessionaire

Mr. Dougall's Letter. 541

** to convey, without distinction and without partiality, whatever shall be offered for
conveyance, subject to the general exceptions provided for." There was no distinction
made in the concession as between the " through traffic from the ports " and the " local
twiffic.'* Transport-riding with the ox-wagon was done for, and the Government and
Tolksraad took good care that the railway company, while having a monopoly of the
transport business in the land should carry it on on strictly fair terms, and within
certafn clearly defined Umits. The farmers, mining companies, and merchants in the
southern, central, and western districts were to have their through goods carried over
the railway from Viljoen's Drift at the same or equivalent rates per ton per mile as
the farmers and merchants in Standerton, Ermelo, Heidelberg, and Pretoria from
Yolksrust, and the mining companies and farmers in Barberton, Lydenburg, Middel-
lurg, and Zoutpansberg fiom Komatie Poort.

The Netherlands fiailway Company had got a very good thing. From Delagoa
Bay to Johannesburg did not exceed 400 miles, as against, say 500 miles from Durban,
•670 miles from East London, and 720 miles from Port Elizabeth. What was there to
fear from competition by the Colonial lines, once the Netherlands Railway was in com-
plete working order from Delagoa Bay ?

But, in time the competition became keen and still keener, more so than the
Netherlands Company cared to meet on fair terms within the four comers of their
•concession. And so it was, because of the company's inability to run their railway
satisfactorily on fair terms to all, or because of their insensate greed, which would
not let them act fairly and secure their position with the good-will and assistance of
all in the State, they misled the Government and secured the closing of the Vaal River
drifts, that first act in the woeful chapter of sad events which has brought about the
present strained position in South Africa.

I should like to make reference here to one or two statements made by Mr.
Middelberg to your Honourable Commission.

1. He stated that " The accusation, that the tariffs from the ports to Johannes-
burg are higher by our taking a greater share of the profits than they would be if we
^MMjepted a lower share, is devoid of foundation" And he attempted to make this
•clear by the illustration of two individuals deciding to build a house, and providing
the necessary funds therefor. And when the rental oi that house has been fixed it is
certainly a matter of indifference to the tenants of the house what shares of the rent
each of the two owners receivea

And Mr. Middelberg alleged that
"" This is exactly the same in the case of the shares of carriage received by each of the

administrations in the traffic with the ports."

In reply to Mr. Albu, Mr. Middelberg maintained that the consignees or owners
of the goods had veiy little to do with what the Netherlands Company got as its share
of the carriage from the ports to Johannesburg.

Now, it is just on this vitally important point that the whole matter depends.
Mr. Middelberg's illustration is not complete. In the event of complaints preferred
and enquiry made thereinto, the Netherlands Railway Company is bound to make
answer and give account to the Government in fullest detail of its dealings with
the farmers, mining companies, and merchants in the Republic. Your Honourable
Commission has been appointed for this very purpose. And it doee concern the
•Government and ourselves very much to know what the Netherlands Railway Com-
pany receives as its share for carriage of the through traffic from the ports. And I
maintain that under cover of the agreement with the Cape Railway administration in
respect of the through traffic from the ports to Johannesburg and elsewhere, the
Netherlands Railway Company receives and appropriates a larger share than it is

n
If

542 Mr: Dougairs Letter.

■

entitled or authorised to receive under the concession. As for example in respect of
the carriage to Pretoria, they receive on:

Normal 20ods ... £2 3s. 4d. instead of £1 lOs. Od. per ton.

Intermeaiate goods ... 2 3 4 „ „ 1 9 3

Rough goods. . . ... 2 18 „ „ 0 19 6

2. When Mr. Middelberg stated imder oath to your Honourable Commission that
the actual rates to Johannesburg (delivery free included) were: —

Normal Interm. Roaeh

Goods. Goods. QooSa,

Prom Port Elizabeth 270 241 175 per ton per nule.

„ East London 276 2*43 177

„ Capetown 256 217 167

he uttered nine distinct misstatements, on his part quite inexcusable, and which must
have proved very misleading to the members of your Commission. The actual rates
levied and appropriated by the Cape and Netherlands administrations, paid by
consignees of goods to Johannesburg, are as follows: —

1st
Class
Goods.

2nd

Class

Goods.

3rd
Class
Goods.

GalVd
Iron.

Rough
Goods.

Prom Port Elizabeth to Mid-Vaal
„ East London „ „
„ Capetown „ „
„ Mici-Vaal to Johannesburg

2-77
2-80
2-74
7-70

2-32
2-34
2-26
7-70

2-0

1-87

7-70

1-80
1-80
1-80
7-70

1*30 per ton per mile
1-27 „
1-35
7-70 „

And it is a very extraordinary thing that, while the Netherlands Company under
their arrangement with the Portuguese administration allow only about 11a 2d for
the carriage of 1 ton of rough goods over the 58 miles from Louren90 Marques to
Komatie Poort, and are authorised under the concession to charge a Tnaximv/m sum of
only 13s. for the carriage of 1 ton of the like goods over the 52 miles from Mid-Vaal
Biver Bridge to Johannesburg, they demand no less a sum than £1 13& 4d. for this-
1 ton over the shorter distance and through a much healthier district.

It is in this wa^, as more fully shown in the accompanying table, that the fair
and righteous principle of equitable rates for the transport of goods, on which the
concession is based, nas been departed from and its conditions broken. And the
farmers, mining companies and merchants in the southern, central and western
districts are made to pay much higher rates to the Netherlands Company for the
carriage of their through eoods from Yiljoen's Drift, than the mining companies and
farmers in the Barberton, Lydenburg and Middelburg districts are required to pay for
theirs from Komatie Poort.

3. I have been somewhat puzzled over the replies made by Mr. Middelberg to
Mr. Albu, as follows : —

Mr. Albu : You charge 7*7d. from Viljoen's Drift to Johannesburg.

Mr. Middelberg : No, no !

Mr. Albu : We pay it then. We don't know who gets it.

Mr. Middelberg : We get it from the Cape.

Mr. Albu : If you get it from the Cape, who pays the Cape ?

Mr. Middelberg : You don't pay 7'7d. You pay about 10a, and so much per ton^
and out of it we claim so much.

It is a pity Mr. Middelberg is not more explicit in his explanations and willi^
to tell the whole truth. He is very misleading. As a matter of fact the Netherlaoib
Bailway Company collect all carriage in Johannesburg, Pretoria, Elandsfontem»

Mr. DougaH's Letter. 543

Boksburg, and Erugersdorp from the consignees on delivery of the goods, and
accounts through the Pretoria Railway Clearing Office for amoimts so collected
which may be due and payable to the Cape Railway administration. And the share
credited to and held by the Netherlands Railway Company for carriage of all through
goods from the Cape ports is eqwal to 7'7d, per ton per mile from Mid- Vaal River to
the above-named five stations.

4 On another very important point, Mr. Middelberg must have seriously misled
your Hon. Commission. Bie has stated that he had convinced himself, that the net
cost for working expenses and interest on construction capital on the Cape Railways
amounted to l^d. to 2d. per ton per mile. These figures are not correct, and from
three points I am able to refute his statement :

a. The share which the Cape Railway receives for carriage of rough through

goods from East London, Port Elizabeth and Capetown to Mid-Vaal River

amoimts to only l*27d. to l*35d. per ton per mile.
h. According to Mr. Middelber£;'s own figures, in spite of these low through rates,

the Cape surplus from railways in 1896 amounts to £8 19& 7d. per cent on

the construction capital
c. Two years ago, if I remember rightly, a committee report was presented to

the Cape rarliament showing that the working expenses with interest on

capital, on the Cape lines from Port Elizabeth and East London to Mid-Vaal

River, were as follows : —

Port Elizabeth to Norval's Pont, 328 miles, f d. per ton per mile.

Norval's Pont to Mid-Vaal, 334 miles, ^d. per ton per mile.

Blast London to Bethulie, 290 miles, fd. per ton per mile.

Bethulie to Mid-Vaal, 325 miles, ^d. per ton per mile.

5. Mr. Middelberg claims praise as " a good servant " to his master, " for assuring
himself of the largest share of the general revenue for the State, etc." I believe his
master to be a just man, who, in spite of many difficulties, tries to be fair and upright
in all his dealings. But in this very important business the servant has actea very
wickedly. Unable or unwilling to carry out his master's commission on the terms
laid down for him to work upon, he determines to make good his position and show
large returns and good profits by disregarding his master's instructions and defraud*
ing his master's customers and subjects. Thereby, he causes very grievous dissension
in the house, and through his meadling propensities this extends to the neighbours
in the adjoining houses, and even bevond, amongst his master's friends at a distance,
80 that they begin to speak reproachfully of each other, and are like to come to blows.
But what cares this wicked servant about the widespread mischief he has made, the

S'levous troubles arid great expenses he has brought upon his master and his master's
ends, so long as he can come scatheless out of the evil situation he has created, and
escape with large sums of money improperly obtained ?

I have not made any close examination into the figures for carriage appropriated
imder the agreements with the Natal and Portuguese administrationa Nor nave I
made any mquiry into the appropriation of the customs duties collected by the
Netherlands Railway Company. But these will require to be looked into most
fiearchingly. Thus far, should my contention and figures be found correct, the con-
sideration of this vitally important matter makes it clear :

1. That the consignees of goods have a good case against the shareholders of the
Netherlands Railway Company for repayment of all amounts so overcharged and paid
by theuL

2. That the directors of the Netherlands Railway Company should be charged by

544 Mr. DougaH's Letter.

the Government to hold in suspense all these monies so obtained, pending a searching-
inquiry into the matter.

The monies so obtained should not have been included in the revenue, and carried
into the Netherlands Railway CJompany's profits account for division among their
shareholders : In the first place, because the railway company has no right to these
amoimts, and sooner or later they will have to be refunded in some way or other to
the parties from whom they were received : And, secondly, because the inclusion of
these improperly obtained sums into the railway company's profits affects to a verjr
material extent the basis on which the expropriation of the Netherlands E&ilway is
to be effected. K the Government does not compel the Netherlands Railway Com-
pany to have their accounts re-opened and re-adjusted, and the amounts in question
carefully ascertained and put aside for refund to parties, the South African Republic
will be overcharged and deprived of a large sum of money when the expropriation of
the Netherlands railway is brought about.

In conclusion, as one earnestly desirous for the peace and prosperity of the
Republic, and the promotion of goodwill amongst all within our borders, I would
state that if the Government will cause the most careful inquiry to be made into this
very serious matter, they will soon find themselves in a pre-eminently good position
for ameliorating the conditions which now press so heavily upon the mining and
other industries in the State. And, at the same time, this will afford the finest
possible opportunity for the powerful financial houses in Johannesburg, acting in con-
junction with the Nationale Bank and the other banks in the Repubhc to rally round
)he Government and help to remedy and improve the situation. The Netherlands
Railway Company and the Dynamite Agency Company will of necessity require to
be bought out, and loans must be raised for these purposes.

And, further, permit me to say, that the present seems to me to be a favourable
juncture for arrangements to be entered into whereby the administration of the
Portuguese Province of Louren9o Marques, the Delagoa Bay harbour, and the
Portuguese Railwav might be undertaken in a manner and on terms equally satis-
factory and profitable to Portugal, the South African Republic, and Great Britain.
And for this end all should lend their best counsel and help for bringing about this
so-much-to-be-desired beneficial result. It is a perfectly feasible project, and, to begin
with, only requires Great Britain to be as considerate and helpful towards Portu^
and the South African Republic as she is to her own Colonies.

I have the honour to remain, Hon. Sir,

Your obedient servant,

JOHN DOUGALL

Mr. Dougairs Letter.

545

^ 5

8 • •

pS55:s

iHs

^ C3 .

Swg

Jj5 I S^

Netherlands Railway Concession.

CONDITIONS of the OonoessloH granted by the Transvaal Qovernment for the oonetructlon
and working of a railway In the South African Republic from the Portuguese frontier
to Pretoria, Barberton, Johannesburg, and the Vaal Rlrer.

PART L

THE LINE TO BE CONSTRUCTED.

Article 1.

This Concession oompidses the construction and working : —

(a). Of a railway commencing from the termination of the line from Delagoa
Bay on the frontier of the rortuguese territory, and running thence in the
direction of the Crocodile River to Nelspruit.

(b). Of a railway joining the line mentioned in (a) to Pretoria, Johannesburg,
and the Vaal River.

(c). Of a railway from Barberton joining the railway mentioned in (a).

Article 2.

The exclusive right is granted to the Concessionary to construct the work on the
conditions of this Concession, when the Volksraad resolves that such shall or mav be
constructed, railways or steam tramways, in the South African Republic, which either
ioin foreign railways or steam tramways, navigable rivers, or the sea, and which may
be deemed to compete with the lines already conceded to the company or portionA
thereof.

This right is^ forfeited in the cas^ of those railways or steam tram lines the con-
struction and working of which shall be undertaken by the State.

If the Government, duriiig the existence of this Conoessioh, should decide to
entrust the working of such a railway line to others, the Concessionary shall be
charged therewith on the conditions of this Concession, unless it shall be otherwise
mutually agreed. The Concessionary shall be bound, within three months after the
resolution shall have been passed by the Volksraad, to declare whether he will avail
himself of his right

I Article 8.

The gauge shall be l*067m. (3ft. 6in. English measure).

If, however, another gauge be adopted for the railway or tramway on POTtogaeee
territory, then the same shall be compulsory for the line herein referred t6.

Netherlands Railway Concession* 547

■va^^PWiBSaawa

Article 4

With the exception of necessary sidings with double rails, the railway and the
earthworks and artificial works belonging thereto shall be built as for a single line.

Article 5.

The direction of the railway between the points mentioned in Article 1 and the
places where the stations and stopping places shall be built, and also the works re-
quired for the free flow of water, and the free passage of traffic on the existing roads,
fihall be determined by the Concessionary in consultation with the Commissioner of
the Government Where the Concessionary deems it advisable or necessary, in the
interests of the undertaking, he may construct the line entirely or partly on existing
roads and streets, provided he leaves sufficient space for ordinary traffic, to the satis-
faction of the Government Commissioner.

Article 6.

All land required for the railway, the stations, stopping places, platelayers' cottages,
dwellings and premises for the staff, and other appurtenances, or estabhshments ; for
obtaining ballast, stones and limestones, or other similar materials ; for cutting wood ;
the removal of materials and earth ; for the deviation of roads, rivers, spruits and
water-leadings ; and, generally, for the construction and working of the railway, shall
be placed at tJie disposal of the Concessionary gratis and timefy by the Government,
but the Concessionary shall compensate it for the price paid by it in those cases in
which expropriation may be unavoidable ; and while the Concession is in existence,
this land shall be conceded to the Concessionary for temporary use, with the exception
of such land as is not required for the working of the line.

In determining the limits of this land, the necessary space for constructing a
double line and for other extensions, and also for the prevention of grass and forest
fia^es, shall at that time be taken into consideration.

Article 7.

The Concessionary shall be exempt from paying customs dues on all material,
machinery, raw material, &c, required for tne construction and working of the
railway.

Article 8.

If the Government orders or permits the construction of roads, canals, etc, which
intersect or join the railway referred to in the Concession, the same cannot be pro-
hibited by the Concessionary.

All necessary arran^ments shall be made by the Government in consultation
with the Concessionary, in order thattherelw no impediment resulting in extra cost to
the Concessionary may be caused to the traffic or railway service.

If the extra cost is unavoidable, as also in case of permanent increase of expen-
diture for the maintenance of the line or the railway service, a lump sum of equal
amount shall be paid to the Concessionary.

Article 9.

•

The railway works shall be commenced within one year after the acceptance of
the Concession by the Concessionary, or so much later as tiie necessary land shall have
been placed at the disposal of the Concessionary, and the line from Delagoa Bay to the

548 NetJierlands Railway Concession.

frontier of the Portuguese territory shall have been so far completed that it is.
possible to commence carrying materials over that line for the railway referred to in
this Concession.

The railway mentioned in Article 1 (a) shall be completed and in working order
within the period of four years after the commencement oi the works.

If the provisions contained in the two preceding paragraphs of this article, as
regards the commencement and completion of this railway are not complied with, the
Government shall have the right to seize all the property of the Concessionanr, on
payment to the company of the sum required for the complete liquidation of the
company, and on returning 90 per cent, of the paid-up capital of the company.

Article 10.

If notice has been given by the Concessionary of the intention to extend the
railway to Pretoria, this extension and also the whole line to the Vaal River shall be
completed and in working order within the period of ten years after the completion
of the railway to Nelspruit.

If this latter obligation is not fulfilled, or if the extension of the railway is not
commenced within a period of five years after the completion of the railway to-
Nelspruit, the Government shall have the right to seize all the property of the
Concessionary on payment to the company of the sum required for the complete
liquidation of the company, and on re-paying the paid-up capital of the company.

The Concessionary undertakes speeaily to complete the railways mentioned in
Article 1, and unless unforeseen circumstances occur, they shall be opened for traffic
on or before the 81st December, 1894, with the exception of the section which
connects Pretoria and Johannesburg with the Vaal River, upon which trafiic shall
commence six months after it shall be possible that traflic on the Free State Railway
to and beyond the Vaal River can take place, or six months after the traffic on the
railway from Delagoa Bay to Pretoria shall have commenced. If this should occur
at an earlier date, and for each day's delay a fine will be incurred, in the first case, of
fifty pounds and in the second case of twenty-five pounds.

The railway company shall be charged in its books with the amount of these
fine&

PART II.
SUPERVISION OF THE WORKS.

Abticle 11.

The Government has the right to cause the construction of the works and the
working of the line to be supervised.

For this purpose it may, at all times, have the condition of the works and the
material inspectea.

Its officers charged with such inspection shall have access to all premises intended-
for the public and the service.

Abticle 12.

The existing laws, or those still to be framed, on the railway policy in the Sooth
African Republic, are applicable to the railway referred to in this tkmceasian, bat the^

Netherlands Railway Concessfon. 54»

Government shall not thereby prejudice the rights granted by this Concession to the
C!onces8ionary.

PART III.
THE WORKING OF THE LINE AND THE MATERIALS.

Abticle 13.
Steam shall be the locomotive power employed.

Article 14.

The Concessionary i^ bound, during the existence of the Concession, to maintain
the railway and everything belonging to it in good order, and not to discontinue the
service, except when compelled to do so by sheer force of circumstances.

Article 15.
The carriages shall be fitted up for at least two classes of travellers.

Article 16.

The Concessionary is bound to lay down regulations for his service, and to
submit these for the approval of the local Government Commissioner, in order that
the latter may convince himself that nothing occurs therein which is in conflict with
the conditions of this Concession, and with the common law of the country.

These regulations are also binding on third parties.

The service shall not be commenced before these regulations have been approved
of. M35^3'^'2

If, within three months after they have been submitted to him, the Government
Commissioner has not dealt therewith, he shall be considered to have approved thereof.

PART IV.
TARIFFS AND CONVEYANCK

Article 17.

The Concessionary may demand payment to be fixed by him for the conveyance
of persons, goods, cattle, etc., and also for unloading, loading, delivery, and all similar
services, for wagon hire, etc.

The import, export, and transit duties due to the Portuguese Government for the
goods conveyed by the railway (and also for cattle), shall be collected b^ and on
behalf of the Concessionary, according to rules to be laid down in consultation with
the Government Commissioner in accordance with the mstructions of the Government

The tarifl* for the conveyance of persons and goods, shall, however, without pre-
vious consent of the Government, never exceed : —

For persons, first class, Sd. per mile (lid. per kilometer) ; lowest class, 2d. per
mile (l^d. per kilometer).

£50 Netherlands Railway Concession.

~ — - __-_■___ _ ^

For ordinary freight goods, 6d. per ton per mile (3|d. per kilometer), with a

minimum of £1 per consignment
For rough goods (coal, ores of not greater value than £45 per ton, stones, unsawn

wood, etc.) in quantities of at least five tons, 3d. per ton per mile (l|d. per

kilometer), witn a minimum of £1 per consignment

Article 18.

To all tariflb and amendments thereto', the necessary publicity shall be given
before they are carried into effect, and no tariff shall be amenaed before ic shall have
been in operation at least three months.

Article 19.

The Concessionary shall be bound to convey, without distinction and without
partiality, whatever shall be offered for conveyance, subject to the general exceptions
provided for.

Article 20.

The Concessionary shall be bound to convev gratis all sealed post parcels which
may be delivered at the station by the postal administration.

For the conveyance of State post carriages, 8d per mile (5d. per kilometer) shall
be paid to the company.

Article 21.

The Concessionary is also bound to undertake the teletj^raph service along the
railway line, gratis for the Government, and on payment from the public

Article 22.

When there is dan^r of war, in time of war, or in cases of internal troubles, the
Government may, in the interests of defence or of the public peace, dispose of the
railway and of everything required for the use thereof, and may cause the ordinary
traffic to be discontinued entirely or partly, and may order all measures to be taken
which to it appear necessary, subject to compensation to the Concessionary.

Article 23.

The Concessionary is bound at all times to grant free access to the rooms in th^
station intended for the public and the service, and, if necessary, to the railway, to
the officers of the police and of the customs d^artment, and in the discharge of
their dutiea

PART V.

THE ACCEPTANCE AND LAPSE OF THE CONCESSION.

Article 24

The Concession is accepted by the Concessionary as soon as a capital of five
million guilders shall have been obtained in shares and debentures, and the con-
veyance over the Portuguese territory shall have been arranged to the satisfaction of
the Concessionary.

Netherlands Railway Concession. 551

Article 25.

The Concession may be withdrawn : —

(a) If the guaranteed capital mentioned in Article 36 shall not have been placed
at the disposal of the Government within the stipulated time by the
Concessionary.
(6) If the Concessionary does not comply with the provisions of Article 28.
The Government is, moreover, competent to withdraw the Concession if it shall
not have been accepted within six months after the Concessionary has received notice
to do so, referring to this Article.

Article 26.

The provisions contained in Articles 9, 10, and 25 shall not apply if the Con-
cessionary shows that the delay or neglect was caused by main force or by acts or
neglect of the Government or its officers.

The Government is, moreover, competent to extend all the periods fixed in this
Concession at the request of the Concessionary.

The Concessionary shall be considered to be in default, simply by the expiration
of the periods fixed, and without it being necessary that this snould appear by any
act.

Article 27.

The Government has the right to appropriate the railway, provided it also
appropriates all the property of the Concessionary, twenty years after the railway
shall have been brought into working order, and thereafter at the expiration of every
ten years, provided uiat at least one year previously notice be given to the company
in Holland of the intention to appropriate.

The Government shall then pay the amount required for the complete liquida-
tion of the company, together with a sum equal to twenty times the average dividend
which has been paid out to the shareholders during the three last years ot the work-
ing of the line, with a minimum of twenty times the interest guaranteed to each of
the shareholders, and at least at par, after the deduction of the fine mentioned in
Article 10.

(Modified AHide 27, as per First Volkaraad " bedvdt " AHide ISSS, dated 7th
September, 1893.)

"Article 27."

" The Government has at all times the right to nationalise the railway, and
'' all the properties of the grantee, but not until it shall have previously given a
" year's notice to the company in Holland of its intention to do so.

" If the nationalisation takes place on 1st January, 1915, or at intervals of a
** period of ten years later, then the Government shall pay the money required
" for the whole liquidation of the company, besides a sum equivalent to twenty
"times the dividend that was paid out on an average to the shareholders
" during the last three years of the exploitation, with a minimum of twenty
'' times the guaranteed annual interest to those upon whose shares an annual
" interest of 5 per cent, or higher, and the full nominal amount of those shares
" upon which a lower annual interest has been guaranteed. From this amount
" will be deducted any eventual fines due by the compemy by virtue of Article 10.

'' If the nationalisation should take place before the 1st of January, 1915, or
before the expiration of the next period of ten years, it shall take place upon

((

552 Netherlands Railway Concession.

''the same basis as laid down in the second paragraph of this article, yet, in
" addition, the nationalisation price shall be increasea by one per cent, of the
" nominal share capital for every year that the nationalisation takes place before
" the 1st of January, 1915, or after the Ist of January, 1915, or the next foUow-
" ing stipulated period/

>»

PART VI.
GENERAL AND FINANCIAL PROVISIONS.

Article 28.

The Concessionary is bound within six months after the Concession shall have
been accepted by him, to establish a " Joint Stock Mercantile Company '* in Holland,
named the " Netherlands South African Railway Company," and to make over to
this company the Concession gratis, in toto, and without reservation, and at least half
of the number of directors of this company shall be Hollanders.

Article 29.

The company shall not deal with any undertakings other than those mentioned
in this Concession, except with the consent of the Government of the Republic.

This consent is now given for the construction and working, or the working of a
railway or tramway on Portuguese territory, from Belagoa Bay to the frontier of the
Republic, which, according to Article 1, must be conjoined by the railway mentioned
in this Concession.

Article 80.

The company is bound to liquidate in case the Government avails itself of the
right of appropriation reserved to it in this Concession.

{Modified AHicle 30, as per First Volksraad "besluit" Article 1333, dcUed 7th
SepteTober, 1893.)

" Article 30/'

" When the Government avails itself of the right to nationalise the railway
" from the Portuguese boundary to Pretoria, Barbertx)n, Johannesburg and Vaal
" River, this agreement shall be deemed to be cancelled, and the tramways and
" line (herein referred to) within the meaning of this agreement, with everything
" pei-taining thereto, shall become the property of the Republic."

Article 31.

For constructing and bringing into working order the railways mentioned in
Article 1, and whatever belongs thereto, including the cost of acquiring, if necessary,
the Concession for the line Delagoa Bay — Transvaal frontier, aU additional costs of
construction, temporary works, management, obtaining or making over money, and
also paying for account of the Republic, of the redemption and interest guaranteed by
it on behalf of those railways, the company shall be entitled, subject to the provisions
hereinafter contained, to issue to an amount of £9,600 per mile (£6,000 or 72,000

Siilders per kilometer), shares and debentures bearing the counter-signature of the
ovemment Commissioner in Holland, and which are Siereby, by virtue of Article 32,
directly guaranteed b}'' the South African Republia

Netherlands Railway Concession. 553

Of this amount, one-fourth at most shall be obtained by issue of shares. The
'rate of interest of the debentures shall, in future, not amount to more than 4 per cent,
•(amended by resolution of the Hon. Volksraad, May 8th, 1891. See appendix A.).

The company may exceed the amount of £9,600 per mile, it unaer control, and
with the cognizance of the Government Commissioner, with the consent of the
'Government, with advice and consent of the Executive Council, if this shall appear to be
necessary for the completion of the railways under construction.

The rate of interest, the currency, the time, and the further conditions of
issue or sale by the company of the shares and debentures mentioned in this Article,
^md also the proportion oi the amount of the shares to that of the debentures, shall
be determined by the company in consultation with the Government Commissioner
in Holland, who, on instruction of the Government, shall countersign the documents
in proof also of this consultation having taken place.

If this consultation has not led to agreement, the issue shall take place on the
•conditions desired by the Government Commissioner in Holland, in accordance with
his instructions, but the shares or debentures not placed shall then be taken by the
Ctovemment.

The Government shall have the right of option when the shares are issued on
fixed conditiona

For the issue of shares or debentures, for purposes other than the above-men-
tioned, the express consent of the Government of the South African Republic, with
advice and consent of the Executive Council is also required.

Article 32.

The South African Republic guarantees directly to the holders of all shares
countersigned by the Government Commissioner in Holland, the interest therein
expressed, calculated on the nominal amount of the company's capital paid up by
them, and to the holders of all debentures, countersigned by the Government Commis-
sioner in Holland, the redemption and interest, in accordance with the conditions of
issue.

In the meantime the company binds itself, while any line or part of a line, the
construction of which the company is bound to commence has not yet been brought
into working order, and it has sufficient means for the purpose at its disposal, to
advance to the Republic what it, for the reasons aforesaid, shall appear to owe in
interest during that time to the holders of shares and debentures issued for the con-
struction of t^t line, or of any section of that line.

The amount of this advance, for which the Republic shall be charged in the books
of the company, may be called up when the Republic avails itself of its right to
Appropriate or when the company is in liquidation for other reasona

Article 38.

In order to ascertain what the Republic, by virtue of the preceding Article, may
1)6Come indebted for, or may 'have to pay in any year, the compemy shall open an
account which shall be closed on the 31st December of each year, on which account are
brought as assets all receipts without distinction belonging to the revenue account,
And as liabilities : —

(1). All expenditure, except such as belong to the construction and capital
account, and except such as has been mcurred for the guaranteed interest
and redemption.

654 Netherlands Railway Concession.

(2). Ten per cent, of the gross receipts of the working of the line, for the reserve
fund mentioned in Article 35.

This account shall be framed in consultation with the Commissioner of the
Government of the South African Republic in Holland.

The amount of the redemption and interest guaranteed in the first section of the
preceding Article, reduced by the balance of this account, shall be the amount which
the Republic, in accordance with the provisions of the second section of Article 32,
shall have to pay annually to the company in Holland, within three months, at the
latest, after the account has been tendered to the Commissioner. The amount which
the compemy may receive from this source from the Republic, the company shall not
be liable to refund to the Republic.

If the company neglects to pay out the redemption and interest guaranteed to the
share and debenture holders by Article 32, and the Republic is compelled to pay this
directly to the share and debenture holders, the amount of this payment, shall be
deducted from the first payment above-mentioned, due to the company by the
Republic.

Article 34.

If the balance of the account mentioned in the preceding article amounts to more
than the guaranteed interest and redemption, 85 per cent, of the surplus shall be paid
to the Republic and five per cent to the management and staff of the company.

The payment to the South African Republic shall take place at the office of the
company m that country, within three months at the latest after the account shall
have been tendered to the Commissioner of the Government of the South African
Republic in Holland.

Article 35.

The reserve fund mentioned in Article 33, shall serve as far as possible to defray
costs of repairs of extraordinary damage done to the line, works and rolling material,
and generally the costs of all necessary renovations and extensions of the railways
worked by the company. This fund shall be administered and invested separately,
the interest being annually added to the capital.

As soon as, and as long as, a sum equal to forty-two hundred guilders (£350) per
kilometer of £560 per mile in working order, has been reached, then the contributioDS
otherwise destined for it shall be used for the redemption of loans.

This fund shall be considered to belong to the property of the company
mentioned in Articles 9, 10 and 27.

Abticle 36.

As guarantee for the observance of the conditions of this Concession, the
Concessionary, on accepting this Concession, shall pay to the Treasury of the South
African Republic the sum of 100,000 guilders, whicn shall be refunded to the company
one year arter the railway shall have oeen brought into working order to Nelspruit,
or, if the Concessionary constructs the extension line to Pretoria, as soon as the line
shall be in working order to that place, or so much longer previously, as the Republic
shall avail itself of its righte to appropriate.

On the guarantee fund 5 per cent, interest shall be annually paid to the company
from the date of payment to tne date of re-payment, payable in Holland on or before
the 15th of January in each year.

Netherlands Railway Concession. 555

Abticle 37.

The Government of the South Af ricail Republic shall appoint a Commissioner
md a deputy in the South African Republic, and also with the company in Holland.

The Qovemment Commissioners, or in the event of their inability, their deputies,
shall have the right to be present at all the meetings of the company, the local
CSommissioner or his deputy, m the case of the Transvaal Republic, and the Govern-
ment Commissioner, or his deputy in the case of meetings of the shareholders in
Holland, and shall have the right to an advising voice in these meetings. They shall
exercise an unlimited control over and supermtend all matters pertaining to, and
transactions of the company, and shall also have the right of access to the offices, to
inspect the books, and to verify the account&

Article 38.

All disputes about the provisions of the Concession, and the way in which it is
carried into effect, between the Gbvemment of the South African Republic or it*
3fficers, and the company or its officers, which cannot be settled amicaoly, shall be
iecided by two arbitrators, and when these do not agree in then* award, by an
ampire, who shall, as good men, without formality, pronounce judgment in the last
resort Elach of the parties shall appoint one of these arbitrators, and these two
surbitrators shall, before proceeding to deal with the dispute, appoint a third, who shall
be umpire on all p9ints upon whicn the two arbitrators cannot agree.

It the two arbitrators cannot a^e on the selection of an umpire, the appoint-
ment of that umpire shall be made by the High Court of the South African Republic,
if a local matter is the subject of dispute, and otherwise by the Court of Justice in
^bnsterdam.

Article 39.

In all cases in which consultation between the company and the Government of the
South African Republic or its Commissioner is requirea, dispute shall be considered to
liave arisen if an agreement cannot be arrived at between thenu

This Concession was approved of by resolution of the Honourable Yolksraad on
26th June, 1890, and serves to replace the concession granted by the Government of
khe South African Republic, empowered thereto by the Honourable Yolksraad by
resolution of 27th May, 1895, with the amendment introduced therein by resolution
>f the Honourable Yolksraad of 12th July, 1888.

Appendix A.

NETHERLANDS RAILWAY CONCESSION.

Article 31, third paragraph, amended by Article 82 of the Yolksraad besluiten,
]ated May 8th, 1891 (minutes page 13), as follows : —

" The rate of interest of the debentures shall in future not amount to more than
4 per cent, without the consent of the Executive Council."

K 2

VI.

Report of the Volksraad Dynamite Commission.

Presented to the Honourable the First Volksraad on the 22nd February, 1897. The following
translation of the Commission's Report was made by the Chamber of Mines and
circulated among Its members.

Pretoria, 19th February, 1897.

HONOUBABLE CHAIRMAN AND MEMBERS OF THE FiRST VOLKSRAAD, PRETORIA.

Honourable Sir,

Honourable Gentlemen,

Tour Commission, appointed by First Volksraad resolution. Article 46, dated 4tb
February, 1897, completed by First Volksraad resolution, Article 187, dated 8th
February, 1897, has, in the short time placed at its disposal, in consultation with the
Government, instituted as thorough an enquiry into the matters upon which it waa
instructed as has been possible, and has now the honour to submit the following
report to your Honourable Assembly for its favourable consideration*

1. The State monopoly for the manufacture, import and sale of powder,
ammunition, dynamite and other explosives, was established by the Honourable
Raad by its resolutions. Articles 1,266 to 1,301, 1,303 to 1,305, dated 1st to 6th
September, 1893.

2. According to Article 4 of the said regulations the Government was authorised to
entrust the carrying out of the monopoly conferred on it to other persons.

3. In accordance with the aforesaid authority, the Government, on the 24th Hay,
1894, entered into a contract with Mr. L. G. Vorstman, copy of which is attached to
this report

4. In Article 10 of the regulations, the Government was empowered to rive
instructions within the shortest possible time, but at the outside, within a perioa of
2| years, to establi^, complete, and bring into operation one or more factories for the
manufacture of dynamite and other explosives of such nature and (Quality, and in
such quantity, as the requirements and aemand within the South African BepnUio
shall aemand and require.

5. In Article 6 of the contract, the a^nt undertook to establish a factory refeired
to in the aforesaid paragraph, at the outside, within 2| years, after the 25th October,
1894,* thus on the 24th April, 1896.

6. The Government agent has, under Article 1 of the contract for the puipofles
thereof, the right to form a company in the South African Republic, which was done
by him, the said company being entitled "The South African Explosives -Gompiny
Limited."

* The date should be 25th October, 1893.

Volksraad Dynamite Commission. 557

7. It has appeared to your Commission that the said company is now working
two factories, one for the manufacture of powder, and the other for dynamite and
other explosives. For reasons afterwards to be mentioned, your Commission occupied
itself more especially with the last mentioned factory.

8. This factory was established and commenced working on the 22nd October,
1896, thus, after the expiry of the period fixed in the contract Your Commission is,
liowever, of opinion that with reference to this neglect, the occurrences during
December, 1895, and January, 1896, ought fairly to be taken into consideration.

9. On Friday, 14th September, 1894, the Government, in accordance with a note
to Article 6 of the contract, made a request to the Volksraad for an extension of the
time for the establishment of the factories, whereupon the following resolution was
passed by this body : — " Article 1711. The First Volksraad having considered the letter
of the Government, dated 6th September, 1894, B.B. 1979/94, now on the Order,
^Lsking for agreement with the Executive Council resolution. Article 457, dated 6th
September, 1894, submitted by the above-mentioned letter having considered the
memorials and the report of the Commission taken with reference thereto, resolves
not to a^ee with the Executive Council resolution, and not to grant the authority
requested for the alteration of the instructions, and instructs the Government to
act strictly in accordance with the regulations, and to reply to memorialists that their
request cannot be complied with as the matter was decided last year by the
Volksraad."

10. The Government agent has informed your Commission that the productive
capacity of the said factory, which is now completed, does not at present exceed
80,000 cases per annum.

11. On 14th October, with reference to an application from the managers of the
company, an Executive Council resolution was passed, which reads as follows : —
Article 893. On the order, Minute R. 1480/96, letter sent in by the managers of the
South African factories for explosives, stating that their factories are completed, and
that they are now in a position to manufacture 80,000 cases of explosives per annum,
and, fuither, after giving reasons, requesting that instructions may be given them for
the building of further factories, which, if acceded to, they will complete within two-and-
a-half yeara The Executive Council having considered that request; having considered
Article 10 of the regulations concerning the same, as well as Article 16 of the contract
referring thereto ; recognising the necessity, that within the borders of the country
establishments should exist which are fully capable of manufacturing in accordance
with the demand for explosives of the mining industry, etc. ; resolves to comply with
the request of the company, a»s contained in this letter aforesaid, and in accordance
therewith and limited thereto to continue in force for a new period, at the outside, of
two-and-a-half years, the provisions made in accordance with Article 10 relating
thereto, and in connection with the aforesaid, to continue the stipulations of the
company's contract of the 24th May in force for the purpose, and in so far as is needful
to enable the company, in that interval to provide for the requirements of the country.

12. It appears to your Commission that this Executive Council resolution cannot
be brought mto agreement with the already quoted Volksraad resolution. Article
1711 of 1894. The Government agent has informed your Commission that since the
passing of the said Executive Council resolution, the company has decided, and is now
making preparations, to extend the workshops of the said establishment, and that it
proposes within the two-and-a-half years provided in the Executive Council resolution,
to doable the productive capacity, thus bringing it up to 160,000 cases per annum,
which number of cases by extreme effort can ob increased to 200,000 cases per ainiiuiii.
Your Commission will return to this subject later.

558 Volksraad Dynamite Commission.

n.— THE FACTORY.

1. Tour Commission regarded it as their duty to visit the factory for dynamite and
explosives on the farms Modderfontein and Elipfontein, to satisfy themselves as far aa
possible of the condition of things there.

2. By anticipation, your Commission may say that they were not only favourably
impressed by the factory, but also that the Qovernment agent and the officials with
great willingness, submitted its plant and arrangements for inspection, and also in.
other respects afforded your Commission the fullest information.

3. The factory is divided into two chief divisions, viz., that for the manufacture
of explosives, and that for the preparation of non-dangerous materials.

4. The arrangements for the preparation of non-explosives, .include a factory for
the manufacture of nitric acid ; two lactones for the manufacture of sulphuric acid ;
two for the concentration of already used acids (for which a third is in course of erec-
tion) and the necessary smithies, carpenters' shops, pump stations, cooling places^
and the mechanical arrangements belonging thereto.

5. The factory for the manufacture of the actual explosives, such as from nitro-
glycerine and the manufacture of explosive gelatine, giihr, dynamite, eta, is divided
mto four compartments, in each of which in fact the same work is carried on, but
which are separated from one another to diminish the effects of an explosion ; also in
each of these compartments the work is earned on in separate compartments or rooms,
which are divided from each other by high earthen walls, and are protected in other
ways. Although your Commission, not being experts, cannot pass a conclusive judg-
ment on these arrangements, they desire to state as their opinion that, according to
their judgment, all measures of precaution are taken to prevent avoidable danger.

6. Generally, your Commission again repeat that, so far as they can judge, the
factory is arranged with the utmost efficiency, and excels in neatness and in constant
vigilance.

7. There are at present 2,000 working men employed, of whom about one-fourth,
are whites.

8. The Government agent has informed your Commission that the cost of the
factory to date, including tLe stock of materials calculated for 10 months, amounts to
more than £900,000.

Ill— MATERIALS.

1. Seeing that under Article 13, Division A, of the regulations, it is laid down that
all the required materials which are found within the South African Republic, and
the quantity, quality, or other properties of which do not prevent their being made
use of, shall be used in the manufacture of explosives, your Commission regarded it aft
its duty to institute a strict inquiry with regard thereto. In the manufacture of nitro-
glycerine, which, in combination with other substances, makes blasting gelatine,
dynamite, etc., nitric acid, sulphuric acid, and glycerine are required.

2. Nitric acid is now made in the factory from imported saltpetre. To the regret
of your Commission, it appears that at present there is no prospect of being able to
obtain sufficient saltpetre within this country.

3. Sulphuric acid is also made of imported sulphur now. The company, however,
expect shortly to be able to produce sulphur from sulphuric ores, and they have
already erected a furnace in which they have begun to test this. With regard to botii
the foregoing substances, your Commission has been informed that neither trouble nor
expense has been spared to make their production from local materials possible.

Volksraad D3mainite Commission. 559

4 Qlycerino is a bye-product from candle and soap factories, and there is no
prospect of this product being obtained locally.

5. Your Commission thus (without desiring to accuse the company of any want of
zeal) cannot cherish the hope that the production of explosives win be independent of
the importation of some of the materiaU.

6. Dynamite is made of nitro-glycerine and gtLhr; kieselgilhr is found in this
country, but, notwithstanding many attempts, the company has not yet succeeded in
discovering it in sufficient quantity ; there is, however, every chance that this will be
done, but your Commission attach little importance to this, as the cost of locally

Srepared gilhr exceeds that of imported, and also because from year to year the use of
ynamite is superseded by that of blasting gelatine — a relatively cheaper, safer, and
more suitable explosiva Cellulose is required for blasting gelatine, and this will not
in the near future be produced here.

IV.— IMPORTED EXPLOSIVES.

1. As will be shown later by your Commission, eirolosives are still imported for
the purpose of meeting the requirements of the local aemand. This is done on the
order of the Oovemment agent.

2. These explosives, to wit, blasting gelatine and gtthr imprera^, are worked up
in the factory. For the manufacture of bating gelatine, as required for trade purposes,
d^rnamite No. 1, the preparation is merely a making-up into cartridges, a very
simple proce8& For dynamite No. 2 and other explosives, which, however, are
relatively little used, other ingredients of little value are added.

v.— DEMAND AND PRODUCTION.

1. According to returns given to us by the Government agent, the demand for
the whole country now amounts to about 200,000 cases per annum ; this a^ees pretty
well with the return sent to us by the Chamber of Mines at Johannesburg, which
gives the present requirements there as 186,000 cases per annum. The difference of
14,000 cases, therefore, represents the demands of the other mining districts and the
remaining consumers of the Republic.

2. It is difficult to arrive at an estimate for the future. Your Commission, how-
ever, think — judging from the best information placed at their disposal — that an
estimate of the demand for 1898, 1899, and 1900 is not calculated too high at 250,000
eases per annum.

3. As we have already stated, the company can now produce 80,000 cases. In
1899 it hopes to be able to double this production, or let us take it to increase it to
180,000 cases.

4. There will thus be a shortage as follows : —

1897 ... ... ... ... 120,000 casea

lo9o ••• ... ••• ... 17U,uUU ff

lo99 ... ... ••• ••• 7U,UuU ff

1900 ••• ••• ••• ..• 70,000 ,9

Total ... 430,000

This estimate is put low, and most favourably for the company, as any trouble at
the factory that perhaps may occur, or any increaised demand which, judging from the
pasty will probably take place, will conedderably raise this shortage.

660 Volksraad Dynamite Commission.

■ ■ I « , , I I , Ml <, I ■

5. It is thus plain that the Qovemment agent has not complied with the obliga-
tion which he undertook in the contract, viz., to produce dynamite and other explosives in
such quantity as the needs and demands within the South African Republic may
require and aemand (see Article 10 of the regulations), and even though it should he
possible to reconcile the Executive Council resolution of the 14th October, 1896, with
the First Volksraad resolution, Article 1711, of 1894, and Arjbicle 16, paraCTaph A, of
the contract of the Government agent ; yet even then the last-mentioned obviously
cannot satisfy his obligations, seeing that the Executive Council resolution says that
the same has been passed to place the company in a position to meet the requirements
of the. country in that interval.

6. Nevertheless your Commission does not wish now to propose the cancellatioQ
of the contract or the suspension of the Government monopoly. The Volksraad has
repeatedly declared the desirability of the trade and importation of powder, dynamite,
and other explosives bein^ in the hands of the State. Your Commission is also con-
vinced of the benefits which are derived from the production of explosives in this
country ; and, further, your Commission is of opinion that the undoubtedly earnest
efforts of the company to establish a local industry render it undesirable that the pro-
visions of the contract should be applied too strictly.

7. For other purposes, however, the undoubtedly strong position in law of the
State against the contractor should not be lost sight of.

8. Principally this point arises in connection with the question whether the
Government agent shall still be allowed to import blasting gelatine and glihr impr^^
(which, in fact, is nothing but dynamite No. 1 not yet made into cartridges).

9. This importation jdelds very great profits to the company, which have nothing
to do with the profits of the explosives proauced by itself.

10. Your Commission gathciir from the accounts placed in their hands by the
Honourable the State Secretary that the profit of the company on blasting gelatine
and ^hr impregn^ imported and paid for by the State amounts almost to £2 per case,
of which only 5& comes to the State.

11. Applying the above calculations to the 430,000 cases, the minimum which
must be imported during the first four years, one arrives at this result, that, if the
State itself imported, the national treasury would benefit to the extent of £860,000,
while, if the company imports, the benefit to the State would be only £107,500, a
difference thus of £752,500 loss* to the State.

12. The benefit that the State should derive from itself importing would aft«r
1900 be further increased through the augmented demand.

13. The only reason that makes your Commission hesitate to recommend that the
importation of dynamite and other explosives, with all the benefits connected therewith,
should be at once placed in the hands of the State, is a doubt whether the Government
would be able to purchase these explosives equally cheaply as the company. The
doubt arises from the fact that many of the greatest dynamite factories in Europe are
important shareholders in the company, and thus possibly supply it* with explosives (B
more favourable terms.

14. The Johannesburg Chamber of Mines asserts that the dynamite No. 1 (con-
taining 75 per cent, nitro-glycerine) can be delivered in open market at 45a per case.
This price would give the Government a still larger profit, as this dynamite is now
sold by the Government agent at 98s. 6d. per case.

15. Your Commission is, however, of opinion that in view of the question
su^ested in Article 13, it would be more prudent to institute a thorough inquiry (fe
which time failed this Commission) for the purpose of establishing beyond doopt it

Volksraad Dynamite Commission. 561

what ^ce, and in what quantities the Government itself will be able to potchase
explosives.

16. Your Commission therefore reoomm^nds vonr Honourable Assembly to insti-
tute an inquiry into this subject on the part of tne Qovemment through its . official
experts, who must obtain all information with regard to the question, where and
under what conditions the required explosives can best be obtained.

17. A complete report of this inquiry ought then to be laid before your Honour-
able Assembly at its next ordinary sitting, when a final dedsion can then be taken on
this subject.

18. Your Commission suggests further, that if the data obtained by them are
correct, the Qovemment, even u selling at much greater profit than it now gets, will
be able to reduce the price of dynamite, and thereby meet the mining industry. It
must, however, be kept in mind that the local factory ought not to be opposed by
unfair competition.

19. Your Commission also thinks this a suitable time, having regard to all the
foregoing, to enter into negotiation with the company for the raising oi the State dues
(5& per case), and the reduction of its selling price for explosives, in which way
perhaps a solution of all the foregoing problems will be reached, to the satisfaction of
all the parties concerned. . ^ .

VI.— ADVANCES.

1. Now coming to the point that specially gave rise to the appointment of your
Commission, we wish to make the following observations : —

(a). That the imported explosives are purchased by the Government agent, who

sends the accounts in to the Government, by whom they are settled
(6). The explosives themselves, blasting gelatine, etc., do not come into the hands

of the Qovemment.
(o). When the agent sells, he repays the amount advanced by the Qovemment

increased by 58. per case.
(d). A large quantity of explosives is kept in reserve (at the moment 60,000

cases), which reserve is more or less maintaii^ed, so that the advance is thus

not repaid to the Qovemment The Qovemment agent often repays the

Qovemment in excess of his sales.
(e) While the explosives are in the hands of the agent, they are properly insured

at the cost of the company.

2. In view of the proposed inquiry, and in expectation of the decision of the
question, who shall import m the future, your Commission proposes to place a sum of
£350,000 provisionally on the estimates, instead of the proposed amount of £500,000.

VIL— POWDER AND AMMUNITION.

Although the question that led to the appointment of the Commission, was not in
direct connection with powder and ammunition, and your Commission did not there-
fore consider it necessary, in view of the restricted time at their disposal to visit the
powder factory, yet in the course of their work they made some observations which
they think it serviceable to lay before the Honourable Assembly.

1. The manufacture of powder is limited in this factory to the making of gun-
powder.

2. No attempts are made to manufacture the so-named new (smokeless) powder
there.

662

Volksraad Dynamite Commitf ion.

8. The manufactnre of this last-named article stands in dose oonneotion^ with
that of nitro-glycerine, and would consequently very suitably constitute a subsidiary
part of the manufacturing at the factory at Moddenontein.

4 The contract with the Government agent includes this (see Article 1.)

6. Your Commission has been informed on competent authority that, especially
from a military point of view, the manufacture of such smokeless powder fully
deserves the attention of your Assembly.

6. Your Commission intends thus to recommend that the Qov^mment be in-
structed to lay a full report on this subject before your Honourable Body at the coming
May Session.

And herewith, honourable gentlemen, your Commission deem that they have
fulfilled the task imposed on them, and have the honour to be

Your obedient servants,

CARL JEPPE, Chavrman.

J. deCLEBCQ, Am.

J. du P. de BEER.
Chamber of Mines, Members,

26th February, 1897.

Balance Sheet of S.'A< Explosiyetf Company.

568

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=iiljlMl|pllillill

VIII.

The State Dynamite Monopoly.

Contract between the Government of the South African Republic and Lambertus Qerardus
Vorstman, of Preturia, concerning the carrying out of the State monopoly for the manu-
facture, sale, trade, and Import and export of gunpowder, ammunition, dynamite, and all
other explosives.

The Government of the South African Republic, acting with advice and consent
of the Executive Council, in accordance witn resolution dated 9th October, 1893,
Article 573, being truly and lawfully represented by the Honourable the Acting State
Secretary, Mr. Cornelis van Boeschoten, who in its name subscribes the same, and has
been authorised to conclude this agreement, by resolution, of the Hon. the First
Volksraad, dated September, 1893, hereafter to be named the Qovemment, of the
one part, and Lambertus Qerardus Vorstman, of. Pretoria, of the other part, have
agreed as follows : —

Article 1. The Government appoints the second undersigned, to the exclusion of
' all other persons, as the sole agent for the carrjdng out of the monopoly for the manu-
facture, the importation and exportation, the trade in and the sale of gunpowder, fire-
works, ammunition, dynamite, and other explosives of whatsoever nature. The agent
shall have the rig^ht to establish a company for that pumose.

ArUcle 2. The duration of this agency shall be for fifteen years from the date
of this agreement.

Where nothing is said in this agreement, the regulations laid down by the resolu-
tidns of the Hon. the First Volksraad, dated 1st. to 5th September, 1893, above-men-
tioned, and copy of which is annexed, shall be binding. •

Article 3. The Government undertakes that, if it issues permits to persons, as
mentioned in Article 2 of the regulations, the following conditions shall be of force :—

f ' (a.) Permits shall only be issued to persons or companies who have given a
declaration in writing that they require the explosives only for their own
use, and the quantity shall in no case be greater than for a consumption of
thr^ montha
(&.) No permit shall be of force lon^r than four months from (he day of issua
. (p,) All explosives undet such permits will be subject to a special import duty of
• SJd. (eigh£pence half -penny) per lb., above the ordinary c^d valorem duty,
(d) The Government shall, on application concerning same, nominate to the
^ . 4gent an official who will give mm monthly information how many and to
whom permits for the importation of dynamite, etc.', have been- granted, and
; wl^ether and when such aynamite has been imported, in order to be able to

take measures with respect to the quantities required for consumption.

^66 The State Dynamite Monopoly.

Article 4. The rent of the gunpowder manufactory, as mentioned in Article 5
the iH^zulations, is hereby fixed at £3,750 per year.

The Qovemment shall have the right to take back the gunpowder manufactory
•any time during the continuance of this contract against payment to the agent for t
extraordinary improvements that have been effected, ana which have been approve
of by the Government, provided these are serviceable, and at the value they have
the moment of taking over, wear and tear, etc., being taken into consideration.

In this case the payment of the rent shall only take place to the day of
over.

^ Article 5. The maximum prices, as mentioned in Article 6 of the regulation^^^^
■which the agent shall be allowea to charge, shall be reckoned as follows : —

For dynamite known as No. 1 ... ... ... £4 15 0

Do. do. No. 2 ... ... ... 4 6 0

Da do. No. 3 ... ... ... 3 15 0 ^-^V>e

The agent shall, in suppljdng cartridges to the Government, bq held and bi^^"^^^^

•obliged to charge no higher price than that for which the same can be imported froiic^^^ ,,

Europe, not including the import duties, and the Qovemment reserves to itself tlu-^ji^?f

right to supply the burghers of this Republic with such cartridges as it may deem fits*-*-*^^

but only for own consumption. .

Article 6. The agent undertakes to erect the manufactories mentioned in ArtJeta^J^^^

10 of the regulations, at such spots or places as the agent shall appoint in oonsultal '

with the Qovemment, at the outside within two years and a half from the date of

:8ignin^ of this contract

The agent undertakes to pav the rent fixed in Article 11 of the r^olations,
the sum of 5& on each case of dynamite sold, every three months, aooompanied
duly certified statements, as well as an amount not exceeding 20 per cent of '
surplus. By surplus is understood the balance which remains aner deductions of
cost, wear and tear, the usual writings off, and an interest of 8 per cent (eight
-cent.) on the capital.

The agent shall be bound to keep proper books, in commercial style, as is
raary in institutions of this nature, and the Qovemment shall have the ri^ht at
times to cause these books to be inspected by an official, or person, or a commission
officials or persons to be appointed thereto.

^ A proper balance sheet shall be made up annually, whereby, in terms of itmJ$
Article, the surplus shall be shown. Thereafter a certified copy shall be sent to tlsd
<3ovemment, and the amount due to it shall be paid.

Article 7. The Qovemment undertakes, with respect to the letters patent men*
tioned in Article 12 of the regulations, that the following stipulations shall be of
force : —

In the event of the Qovemment granting letters patent for any explosive^ soeh
letters of patent shall, however, not give the nght to anybody else than to
the agent, to whom the carrying out of these instructions is entrusted bv the
Qovemment, to manufacture the material therein mentioned, and to sen the
same within the boundaries of the South African Bepublia
Should the Qovemment or the a^nt deem it desirable to apply or bring into on
the said invention, and should the Qovemment in that case not be able to
come to terms with the owner of, or the person entitled to, that inventioo
with regard to the application of the same, then the parties, f QovenuneDt
and patentee) shall each nominate an arbitrator, whilst the third arbitrator,
or umpire, if necessary, shall be appointed by the Chief Justice, whoae
decision shall be final

The State Dynamite Monopoly. 667

Abticlb 8. This agreement shall be of force withm the territory of the South
rican Repubhc, in so far as it now e:&tends or eventually may be extended.

If the territory of the South African Republic should in the future contain,
itricts or provinces in which provision already has been made with respect to the-
iterials or substances which form the subject of the agreement, it will depend upon
d Government whether these instructions will also be applied to the new aistricts or
ovinces.

Article 9. Should the agent of the Government, during a defined period, not be
le to satisfy the requirements for explosives within the Republic, in consequence of
plosions, accidents, calamities, or other superior force and causes arising beyond the
atrol or fault of the agent, the Government may import these materials until the-
ent shall be able to supply the required materials. In that case the Government
ires to the agent the preference for the carrjdng out of the same. The agent shall
obliged, after any accident, as mentioned in this Article, to place the manufactories
ain m working order within the shortest possible tima

Article 10. If the Government imports any explosive, as mentioned in Article
of the regulations, it gives the preference to the agent to do such in its name.

Article 11. All persons employed by the agent are hereby freed from personal
litary service on commando or in the field, provided their contracts are drawn up
th the condition that the Government shall have the right at any time, if deemed
cessary, to take over the contracts, and they bind themselves to serve the period of
Tvice with the Government.

Article 12. Should the Government avail itself of Article 15a of the regulations,,
shall be bound to buy the explosives required in the country in terms of this con-
ict from the agent, costs of trade deducted.

The period in Article 15f of the regulations is hereby fixed at six months.

Should the agent, by his own interference, fault, negligence, or default, fail to-
ny out the conditions of this agreement, after having been required in writing to
» so, and after having been allowed at the outside a period of six weeks to do so, the
jvemment will have the right to cancel this agreement ; if the default or neglect is
be attributed to malice, the Government will have the right to cancel this contract
ithout any notice.

Article 13. — The agent is entitled to entrust the sale of the articles mentioned
this agreement to one or more persons.

Article 14. — ^The agent of the Government is obliged to pay import duties on
e machinery and tools required in the carrying out of this agreement.

Article 15. — ^The Government may prescribe measures of precaution or safety
ith reference to the transport and storage of the said materials.

The Government shall not hinder the export of these materials, except for rea^sons
danger to the State, or other weighty reasons.

Article 16. — With reference to Article 17 of the regulations, the Government
akes the following arrangement with the agent to the exclusion of everybody

(a). During the time that the manufactories to be erected by the agent are not
completed, the Government itself shall impoH all materials and substances
required for the manufacture of dynamite and other explosives in the-
magazines of the agent, and, according to a tariff of prices, quality and
quantity to be approved of by the Government, with this understanding,.

568 The State Dynamite Monopoly.

that this importation shall only continue during the time that the
manufactory or itoanufactories shall not have been completed, and in any
cade not longer than during a period of two and a half yeara

(b). The Qovemment shall place the said materials and substances at the
disposal of the agent for manufacture, trade and] sale, according to the
conditions above mentioned, and the agent shall manufacture, trade in and
sell on the order and for account of Government, under the conditions
above mentioned, in so far as they apply here.

(c). The agent shall send statements to the Qovemment every month, detailing
the manufacture, trade and sale, and shall pay to it all moneys receive^
for the sale thereof, from which, after deduction of five shillings per case»
and the monevs paid by the Government for the materials imported, the
balance shall be handed to the agent

Article 17. — The agent shall be obliged, within eight days after the signing of
this contract, to give proper security for the due performance of the obligation to erect
the manufactories mentioned herein, and the carrying out of the contract until the
manufactories shall have been erected and shall be in working order, to an amount of
£30,000, for which all his assets in this country shall be available, and proper d^ds
of hypothecation shall be passed.

Article 18. — All disputes as to the meaning or reading of this agreement that
may arise between the parties shall be decioed, to the exclusion of the ordinary
judges, by arbitrators as in highest instance, and shall be finally binding on the
parties.

Should the parties not be able to come to an amicable arrangement with regard
to the interpretation of this agreement, the one party shall give notice in writing to
the other, and whatever the questions of dispute arising out of this agreement, tney
shall submit the same to the decision of the arbitrators.

The parties then shall each nominate an arbitrator, who, together, shall nominate
a third. Decisions shall be given at the outside within three montha If one of the
parties should not in good time appoint an arbitrator, or in the event of the two
arbitrators not agreeing in the choice of a third, then the Chief Justice, or his substi-
tute in the Supreme Court of this Republic, shall make a nomination, the parties
having been heard or summoned.

Thus done and contracted at Pretoria, this 25th day of the month of October,
1893, in the presence of the subscribed witnesses.

(Signed) C. VAN BOESCHOTEN,

Acting State Secretary.

(Signed) L. Q. VORSTMAN.
Witnesses:

(Signed) W. K HOLLAED.

(Signed) P. L. A. GOLDMAN.

Parliamentary Electors S. A. R.

67a

List of Electors

According to Retv/ms from Fietd-Cometa throughxyui the S. A, R.
(Taken from the " 8tate Alma/ruic " for 1897.)

Maizes

"~ DI8TBIOT8. '

between

under 18 and

18 and 34

34 and 60

over fiO

yean of age.

Bloemhof

467

311

124

Carolina ...

182

329

Ermelo ...

390

228

147

Heidelberg

916

471

192

Ejrugersdorp

—

900"

—

lichtenburg

.. ,^f^

580

268

157

I^denburg
Marico ...

507

547

218
418

125
200

Middelburg
Piet-Retief

1,067

592

396

200

Potchefstroom

1,966

941

693

Pretoria ...

2,095

866

613

Bustenburg

1,352

499

436

Standerton

696

268

116

Utrecht ...

381

146

Vryheid ...

484

214

182

Wfl^kerstroom

560

265

179

Waterberg

465

184

Wolmaranstad

328

111

Zoutpansberg

626

347

210

Ooldfields

■• .« •

511

331

122

Irand Total

>• • ••

14,269

8,162

4,089

Wbtte Popubtion & A. R.

Statistics of White Population of the
South African Republic.

AcKfrding to ths latest BMwma obtained.
{TaJufn frvrm, tA« Stale Almanac for 1897).

DisTKicra «(D DiooiNOa.

Males.

Females.

Tobd.

Barberton

3,600

2,900

6,400

Bloerahof...

2,000

1,600

3,600

Bokabarg

3,200

2,100

6,300

CaroliDa ...

2,500

1,200

3,700

Knnelo ...

2,700

1,850

4,650

Heidelberg

5,7V0

2,050

7,820

32,387

18,520

60,907

(neighbourhood)

4,000

2,500

6,600

Knigeredorp

10,600

9,950

20,460

Lichtenburg

3,600

3,000

6,500

Lydenburg

1,600

1,250

2,750

Marico ...

3,600

3,000

6,500

Middelburg
Piet-Retief

5,600

4,000

9,600

600

660

1,160

Potehefstroom

12,600

12,300

24,900

Pretoria ...

16,700

14,600

30,300

Ruatenburg

5,600

5.000

10,600

Staiiderton

3,800

3,750

7,560

Utrecht ...

1,750

1,100

2,860

Vriiheid ...
WakkerBtroom

2,610

2.520

6,160

6,000

6,700

11.700

Walerbsrg

2,600

2,300

4.900

Wolmaranatad

1,600

3,100

Zoutpanaberg

4,500

4,200

8,700

rotal

137,947

107,460

216,.397

The area of the Tranfivaal is given at 120,000 square miles, which makes aa
averaf^ of 204 whites to the square mile and the average of the native popalati(»i
5-18 to the square mile, and of whites and blacks 7*22 to the square mile.

Native Population S. A. R.

575

XII.

Statistics and Census of the Native Popula-
tion OF THE S.A. Republic.

According to statements received.
(Taken. from the State AVmcmae for 1897.)

Number

Kamber

Districts.

Men.

Women.

Children.

Zoutpansberg (Ellipdam, Ealkbank and Spelonkei

i) 17,877

22,561

48,169

Waterberg

. • • • • 1

5.598

8,828

29,287

Lydenburg

• • • •• 1

6.591

9,332

8,706

TJttecht*...

• . • • • <

—

— .

...

Marico

• • . • • •

3,030

1,796

2,704

Piet-Retief

... • . «

4,583

5,488

11,800

Middelburg

• . • • • •

6,335

8,825

17,690

Bofltenburg

... . • «

5,484

5,466

13,173

Bloemhof, wijk Vaalrivier ...

... • . «

359

367

915

Standerton

... . • «

1,181

1,431

3395

Ermelo ...

• • • • • <

1,313

2,132

4,819

Vrijheid ...

Wakkerstroom, wyk No. 3. ...

Pretoria, wijken &ok. rivier and ^

. • • • • •

6,984

9,066

13,753

... . . «

1,081

1,541

2,920

(^itwatersrand

[ 2,132

2,466

5,584

Idchtenburg

• • . . • •

1,357

1,494

3,080

Heidelberg

... . . t

1,622

1,561

2,612

Potchefstroom

... • . t

2,687

2,523

7,830

Carolina ...

• • • • • <

1,028

1,420

2,528

Krv^rsdorp

• . • . . •

387

373

1,034

68,629

86,160

180,099

Farther estimate of population in

Zoutpansberg

. . • • • •

59,691

73,806

154,159

Total

128,320

159,966

334,258

*JSlo Beturns.

Total Native Population

•••

622,544

I »

XIII.

The Pass Law.

LAW NO. 81, 1896.

Being^ amendment of Law No. 23, 1895.

Declared valid by the Hon. First Volksraad by Article 2289 of their minutes,
dated 10th September, 1896, until the First Volksraad decides more particularly with
regard to them in their next ordinary session.

Whereas it is deemed necessary to amend Law No. 23, 1895, so it is hereby
enacted as follows : —

Reflations in terms of Article 88 of the Gold Law. For the puipoBe of
facilitatmg and promoting the supply of native labour on the public (uggmgs of
this Republic, and for the better controlling and regulating of the natives
employed, and the relations of employer and native labourer.

IT IS ENACTED :—

1. These regulations shall only after proclamation, as in Clause 2 provided, be of
force and effect within the boundary of the proclaimed public diggings of this State,
and shall, therefore, in no way be taken to interfere witn Law No. 13 of 1880, 3 of
1876, and 6 of 1880, or with Law No. 22 of 1895 (Native Pass Law), which laws shall
remain in full force and effect within the proclaimed gold fields, in so far ias they do
not conflict with the provisions of these regulations, these regulations being regarded
as special additional laws for the area proclaimed. The area mentioned in the third
clause of Article 153 of Law No. 21, 1896, shall also be regarded as coming under
these regulations.

2. These relations shaU come into force and effect for such public diggings and
private unproclaimed ground of this State as the State President, with the advice and
consent of the Executive Council, shall from time to time determine, and shall by
proclamation in the Staatacov/rant proclaim as coming under the operation thereof.

3. Such public diggings shall simultaneoui^v with the proclamation of the above
effect be deemed, for the purposes of these regulations, to be divided into as many
labour districts as there shall for the time being be Mining Commissioners and
ludicial officers on such goldfields, and the labour district will have the aaaie
boundaries and be coterminous with the district of the jurisdiction of such Miniflf
Commissioner or judicial officer ; provided always that the Government shall have
the right to declare any town within the proclaimed area as a separate labour district

4. In these regulations the word' "' native " shall be deemed to apply to males
of all the native and coloured races of South Africa.

Every native, on entering any district governed by these regulations, and being
in possession of the pass required by existing pass law, shall, without unreasonaUe

The Pass Law. 577

«<lelay, repair to the district offioe and get a pass and a badge as hereinafter provided
for, and in proceeding thither he shall be protected by the pass he holds.

Any servant travelling within his labour district on his employer's service will be
protected if he, in addition to the pass and badge required by these regulations, has a
tree written pass in terms of Article 1 of Law 22 of 1895 (Native Pass Law).

5. Upon entering the boundaries of a proclaimed goldfield and private unpro-
<<claimed area falling within the operation of these regulations, a native shall be bound,

before engaging himself to any employer, to repair to the office of the Mining Com-
missioner or to thd office of the officer or officers appointed for the district, and there
exchange his travelling pass, whether same be irom within the Republic or from
beyond the borders thereof, for a district pass of the form on schedule A.

6. The Mining Commissioner or pass officer appointed for the district shall enter
in a register to be kept for the purpose, of the form of schedule B hereto, the name of
the native, his tribe, chief, father, district or ooimtry, stature and marks, if any, etc.,
^nd he shall also number each native consecutively. Such registered number shall
thereafter be the native's official mark so long as he remains within the district. All
these particulars shall likewise be entered on the district pass, form schedule A.

7. In addition to the district paas to form A, the pass officer shall at the same time
issue to each native a metal ticket or badge, on which shall be clearly stamped or
impressed at the time of issue the native's registered number, the initial letters of the
labour district, and year of issue. This ticket or badge shall be attached to a strong
leather strap or buckle, and must be worn by the nauve round his left arm above the
-elbow, so as always to be clearly visible. Such district pass and badge shall be issued
free of charge.

8. Such district pass and metal badge shall enable and authorise the native to
whom it is issued, to seek employment within the labour district for which it is issued
for a period of three days from the date of issue.

9. If the native fails to find employment within the prescribed three days from the
'date of issue of district pass, or after discharge by his last employer, he shall return to

the Mining Commissioner or pass officer who issued the pass and badge, and may
have an extension of a further three days endorsed thereon by the pass officer, on
-payment of a fee of two shillings ; failing to find employment within the further three
•days, he shall return to the pass officer, and it shall be in the discretion of the pass
omcer or officers charged with the administration of these regulations to require irom
uBuch native his district pass and metal badge, and in return issue to him an exit or
travelling pass, in terms of Articles 8 and 9, and the native shall pass on to another
'district or return to his home.

10. The district pass and metal badge will hold good so long as the native
remains in the labour district.

11. A native working on a proclaimed goldfield, and wishing to remove from one

labour district to another, on such or any other proclaimed goldtields, or to his home,

•or to any part of the Republic, if beyond the labour district, shall first apply for

leave to do so from the Mining Commissioner or other appointed pass officer in his

district, and such leave shall 1^ granted him, provided he tnen holds a district pass, in

•clear order, with metal badge, and that his last, employer, if any, shall have nlled in

the full discharge requir^ on the district pass, form- A. Thereupon the Mining

Ck>mmissioner or pass officer shall issue a travelling pass of the form set out in

;8chedule C, in excnange for the district pass and the metal badge held by such native,

on the payment by the native of a fee of one shilling.

12. The Mining Commissioner or pass officer shall register the date, number, and
^particulars of such travelling pass against the native's name and* number in the

578 The Pass Law.

13. Upon arriving in any new labour district of a proclaimed goldfield, a native
travelling under the pass above described shall be bound immediately to repair to the
Mining Commissioner thereof, or other officer appointed for the purpose, and ihffte
obtain a district pass and metal badge in manmer and of form above described.

14 Any native found in the labour district without the district pass of form A
and metal badge, or without a travelling pass, or any defaulter under Article 9, shaQ
be punishable by a fine of not exceeding £3, or not more than three weeks"
imprisonment with hard labour for first offence, and for second offence a fine not
exceeding £5, or not more than four weeks' imprisonment with hard labour and
lashes, and at the discretion of the Court before whom he shall be convicted for every
offence thereafter.

15. Any native who has lost his district pass or metal badge, or both, may apply
to the district officer who issues the same for a new pass or badge io substitution for
the one lost, and the district officer shall issue a new district pass or badge if he »
satisfied of the identity and bona fides of the applicant by means of a letter from the
last employer, if any : provided that the applicant shall pre-pay for such new pass or
badge a fine of 5s.

16. Any native being in possession of, or using or counterfeiting a district passy
employer's pass, travelling or exit pass, or metal badge, or falsely stating that he has
not previously been registered, or making any other false statement, or dom^ any act for
the purpose of deceiving the pass officers or evading these regulations, ana any native
who shall transfer any of the passes or metal badges hereinbefore described to- any
other person, and any native who shall accept transfer, or make use, or be in posses-
sion of any pass or metal badge belonging to any other native, shall be deemed to be
guilty of contravening these regulations, and shall, upon conviction, be punished hf a
fine of not exceeding £5, with imprisonment of not exceeding one month and lashes
not exceeding 25.

17. The Qovemment shall make arrangements as it may deem desirable, so that
each labour district in a proclaimed goldfield shall use and issue a pass distinctive in
colour from those of the other labour districts, and metal badges with initial letters
of each district, in order to facilitate the detection of vagrants or natives movii^ in
any labour district without a pass and bad^e for that district.

18. Any native leaving a labour district without the proper travelling pasa of
form C shall be liable to a fine not exceeding £3, or one month's imprisonment with
hard labour, with or without lashes. Should it appear to the satisfaction of the Coort
that the native has left his last or any employer m breach of his contract, then the
said fine may be increased to £5, and the saia imprisonment to two months.

19. It shall not be lawful for any person within the proclaimed public diggings: —

(a). To engage or employ any native unless he is provided with a clear district

pass and corresponding metal badge at the time such native seeks empk^-

ment.
(6). To engage or employ any native unless his district pass shall show that be

has been duly discharged by his last employer, if any.
(c). To provide a monthly pass for a native labourer who is noihanafide in his

service.
{d\ To act as agent or intermediary with regard to the issue and obtaining of

passes and metal badges for native labourers according to this law.

20. Immediately after engagement the employer shall enter upon the district pass
of such native engaged all the particulars as required on the face of the district paas^

The Pass Law. 579

form A. And shall take from the native such district pass and issue instead thereof
sn employer's pass of form D. This employer's pass shall be renewed monthly on the
"first day of each month, and for the first pass and each renewal thereof the native
fihall pay the sum of 28. per month. And the employer shall be liable to Government
for such amounts of pass moneys' on every native in his employ, and he shall further
be responsible for ana issue the passes monthly to each and every native employed,
such passes to be supplied by and purchased from the Government.

21. .The employer shall take possession of and be responsible for the safe-keeping
of all district passes so long as the native remains in his or their employ, and on the
termination of the native's service the employer shall enter upon the said district pass
the particulars of such native's discharge as are required by the pass form, and then
return the pass to the rightful owner thereof.

22. Any employer who shall be convicted of a breach or failure to comply with
any of the provisions of Clauses 19 to 21, or illegally withholding district pass from,
or coercing any native, shall, upon conviction, be punished with a fine of not less than
five poun^ and not exceeding one hundred pounds for each and every breach or
failure in respect of every native employed, or in default with imprisonment not ex-
ceeding six months, with hard labour. In the event of the employer being a company
or sj^dicate, then, and in such case, the manager shall be responsible.

23. Every employer employing more than twenty native labourers shall be
obliged to keep a register according to schedule form F, and shall at the end of each
month, and not later than the fifteenth day of the month following, fill in and send in
a return to the Mining Commissioner, or pass officer of his (ustrict, of form F
schedule, giving the registered numbers of badges and district passes, with name, etc,
of all and every native engaged and discharged during that month. Such returns
shall be filed and kept by the pass officer for record and reference.

24. Every employer failing to comply with the foregoing regulations, or making
false or fraudulent returns, shiul be liable to a fiine of not less than £5, and not ex-
ceeding £100.

25. Any person making use of the provisions of these regulations for the pur-
pose of imposmg on and defrauding a native labourer of the wages, rations, or advan-
tages due to him, shall, upon conviction of such offence, be liable to a fiine not exceed-
ing £100, or three months' imprisonment, with or without hard labour.

26. Any person found guilty of forging, counterfeiting, or imitating any of the
l^asses or metal badges issued under these regulations, or forcing, counterfeiting, or
imitating any stamp, seal, or signature, or any such stamps, scab, or passes orges;
^which may have been issued in terms thereof, and not being the employer described
in such employer's pass or form, or any pass, or not being by the employer authorised
so to do, but making or writing on sucn pass or badges any entry, name, or mark
intended to defraud the Government officials, whose duty it shall be to issue or inspect
such pass or badge, or to deprive the employer, if any, of the services of such native,
or in any other way to defeat the provisions of these regulations, shall, on conviction
of each and every or any such offence, be punishable by a fine not exceeding £100, or
by imprisonment not exceeding three months, with or without hard labour.

27. The Government shall appoint such officers in each district as may from time
to time be found necessary for the due and proper administration of these regulations.
And shall further appoint special labour inspectors for each labour district, with power
to summarily arrest all natives contravening these regulationa

The duties of such special labour inspectors shall inter alia be : —

(a). To make regular and frequent inspections of registers of native labour
kept by employers, to inspect all natives employ^, to ensure that their

580 The Pass Law.

badges are worn and in order, and, if need be, compare any or all such,
natives with the district pass filed by the employer.

(b) Inspect monthly passes of all such natives.

natives when and wherever met.

(d) Qenerally to see that the provisions of the law and these regulations are

carried out.

(e) To make a proper report to the pass officer of their district of every inspec-

tion held by them in accordance with the above regulations, and to keep-
a proper diary of their work.

28. Any native found by the police or special labour inspectors without his proper
badge, and either district, travelling, or employer's pass, or being a defaulter under
Article 9, shall at once be arrested, and fined or punished by any qualified Court
having jurisdiction in terms of these regulations.

29. All complaints by employers as to desertion of natives shall be communicated,
to the district officer, or the inspectors, whose duty it shall be to take the badge and
pass numbers, names, etc., of such deserters, and do whatever may be necessary to
arrest the deserters for punishment in terms of these regulations.

30. All complaints oy natives against employers shall be made to the inspectors,,
who shall at once report to the district officer appointed for that purpose, whose duty
it shall be to make a full and proper investigation into the cause of complaint without
delay ; and, if need be, submit the matter to the Public Prosecutor, who shall at once
proceed against the employer under the provisions of these regulations.

31. All fines imposed under these regulations shall be paid to the Government of
the South African Republic.

32. All contraventions of these regulations and of any of the proviwons thereof
shall be cognisable by any Court having jurisdiction under the Master and Servants"
Law, No. 13 of 1880, and under Law No. 22 of 1895 (Native Pass Law), and in whose
jurisdiction the offender may be found. And such Courts are authorised to adjudicate
on all such contraventions, and to impose the fines and penalties in these regulations
and the schedules thereof provided for. All complaints under the regulations shall be
brought to trial within 48 hours after arrest ; the Court, however, having the right to
directpostponements.

These regulations shall not affect the validity of the Supplementary Regulations
of the Johannesburg Sanitary Committee, published under Government Notice, Na
385, on the 8th November, 1893, but, on the contrary , such Supplementary Regulations,
shall remain in full force and effect, and natives licensed thereunder shall be exempt
from the provisions of these regulations with regard to district passes, metal badges^,
and employers' passes, so long as they remain under the said regulations of tha
Sanitary Board.

33. All pass issuers appointed in terms of this law to the various labour districts
shall be ex officio Justices of the Peace.

34. Law No. 23, 1895, is repealed.

35. This amended law comes into operation immediately after publication in thfr
Staatacourant

The various passes A, B, C, D, and E, published in the 1896 Report of tb&
Chamber of Mines, are unaltered. Schedule F had not been drawn up at the end of
the year.

Native Wages Witwatersrand.

581

XIY.

[EDULE OF Native Wages, Witwatersrand.

Agreed to at a corrdmued ^meetinff of Mining Companies, May, 1897.

w^**

• • •

Mine.

ae helpers
ler boys
I boys

boys (10 feet trucks)
boys (16 feet trucks)
lalt and winze boys
haft boys
haft boys (when develop-
only)

jutting hitches for timber
T boys

gangers' assistants
n boys (where white man
(loyed)

n boys (where no white
I employed) ...
>ist drivers
man's assistants
ayer's assistants
tan's assistants

Surface.

ra (12 hours) ...

rs (eight hours)

e cleaners

ig boys

gear boys (where white

i employed) ...

gear boys (where no white

1 employea) ..

1
1
1
1
1
1
2

2
1

1
2

2
2
1
1
1

2
1

d.
8
6
3
2
6
8
0

6
6
2
0

1 2

6
0
8
6
6

6
8
6

2 0

1 4

2 6

Mill.

Elevator boys
VoanerboyB
Mill boys (12 hours)
MiU boyS' (eight hours)
Blanket and sluice boys
Crasher boys
Surface trammers ...
Mule drivers

• ••

« • •

Cyanide.

Solution shed boys ...
Boys (filling and disoharging)
Zinc cutters ... •••

Tramming residues...

GenIeral.

Fitters' boys

Blacksmiths' boys (strikers) . . .

Blacksmiths' boys (helpers) . . .

Carpenters' boys

Masons' boys

Police

Compound cooks

Drill packers

Drill sorters

Surface labourers . . .

Office and store boys

Assay office bovs . . .

Coal boys (off-loading)

• » • I

• • «

• «•

»; /'.ir

Totes. — ^Timber boys assisting in timbering shafts, to be paid at the rate of wet
ry shaft boya

[even and one*half per cent, of the natives employed may be paid special ratea
ionth to be reckoned as consisting of at least 30 working days.

XV.

The Liquor Law

Of the South African Republic.

ACT No. 17, of 1896.

Being an amendment of Act No. 13, of 1892.

As amended and revised by Acts Na 12 of 1893, Na 21 of 1894, and Na 18 of
1895, defining the manner in which wines and spirituous or malt liquors including
kaffir beer may be sold.

Approved of by resolution of the Honourable the Second Volksraad, Article 878,
dated 22nd July, 1896, and accepted as notice by the Honourable the First Volksraad,
under Article 1160 of its minutes, dated the 7th of August, 1896.

^•oilTfrttiimita ^* ^^ ^^^ °^y^ ^^^* dispose of, or trade in wines, malt or spirituous liquon^
lioenoe. including kaffir beer, without oeing duly provided with a special licence, as hereinafter
set forth.

Anv person contravening this Article, shall, on the first offence, be punished with
a fine of not less than £36, and not exceeding £75, or, failing payment^ with impriscm-

r^and penal- ment, with or without hard labour, not exceeding six months for the first offence ; on
a second offence with a fine of not less than £160, or, failing payment, with imprison-
ment, with or without hard labour, for not less than twelve months ; on a third offianoe
with a fine of not less than £300, or, failing payment, with imprisonment^ with or
without hard labour, for not less than 18 months.

Gramti^m^ The owner or tenant of a farm or piece of ground, or the person authorised by
BoUoniok* him to convert the produce thereof into wine or spirituous liquor, may, however, on
that farm or piece of ground, sell the produce thereof, but then in quantities of not
less than oneoottle.

Tbtj iDMr re- 2. The pcrsou referred to in the last paragraph of Article 1 shall further also be
"^ --^ "»• pjermitted to remove and sell his wines or other spirituous Ucjuors in the above-men-
tioned Quantity without licence, except on premises, or withm the limits of villages
or stand townships, or within three miles of any mining worka

Such person will, however, be permitted to sell without licence by wholesale on
public markets, and also to licensed liquor dealers, provided he is provided with ft
certificate from the Fieldcomet of his ward, or Landdrost of his district, showing tiiat
the wines or spirituous liquors were manufactured on the farm or piece of ground
mentioned in the last paragraph of Article 1.

uoocM^ where 3 ^^ Ucencc for the sale of spirituous liauors, by retail or wholesale, shall be
granted, except in established and acknowledged towns and villages, and dlgpnff
under Qovemment control.

[By resolution of the Second Volksraad on the 22i«d Jaljr, 1896, the operation of tliis Artiole W
suspended for 12 months, in order to give the public an opportunity of expressing thmr yiews.]

The Liquor Law. 583

4. The licences referred to in Article 1 shall be the following: — uoenoei.

(a) Licence for the sale by wholesale. Under this licence not less than two ^''^o****^

gallons in vessels, or twelve bottles mav be sold.
(6) Licence for a bottle store. Under this licence no sale by smaller mecusure than Botuestow.

by the half-bottle shall be permitted, and always with the understanding

that the liquor sold under this licence shall not be consumed on the premises

for which licence is granted.

licence, and be consumed on Uie premises for which licence is granted.

(d) Licences for roadside hotel& This licence is only granted for roadside hotels. RoacUde hotels
These hotels shall be at least six miles distant from any town, village, or
stand-township, seat of a Landdrost, Mining Commissioner, or resident Justice

of the Peace.

(e) Licence for the sale of malt liquors by retail This applies to beer-halls ii«itiiqiion.

where only malt liquors are sold. Said liquors may oe sold under this
licence in quantities of less than a bottle, and may be consumed on the
premises for which the licence is granted.
(/) Licensed liquor dealers contravening the conditions stipulated in their licence, Peiudtieg.

shall be punished with the penalties laid down in Article 19 of this Act
6. Anyone exchanging or selling wines, spirituous or malt liquors to any coloured 8«uinjr to ooi-
terson, shall be subject to the penalties laid down in Article 1 of this Act. ^ v^nom.

6. It is prohibited to give wine, spirituous or malt liquors, including kaffir beer> Giving to ooi-
0 coloured persons on dig^gs under Qovemment control Any person contravening «>«*** p««*>**
he stipulation in this Article shall be punished with a fine not exceeding £500, or,

Ailing payment, with imprisonment, with or without hard labour, not exceedmg one
ear.

7. The licences are issued for not longer than one year, ending with the oflicial Termof uoenoe.
ear, that is the 31st December. Licences may be issued for one or more quartera

The payment for licences shall be as follows : —

(a) Licence for selling by wholesale, £25 per annum ; £9 per quarter. LtoencefMt.

(6) Licence for a botue store, £4pO per annum ; £12 per quarter.

(d) licence for a roadside hotel, £35 per annum ; £10 per quarter.

(e) Licence for selling malt liquors, £25 per annum ; £9 per quarter.

(/) The Government shall have power to authorise the reduction of the amount
for retail licences granted by the local Commissioner in small villages of not
more than 100 white male inhabitants above 16 years, to the sum <3 £40 per
annum and £12 per quarter, provided the applicant has proper lodfdnfi: for
dx persons, and stobl^g for eight horses. mX. or donkeys.

8. No licence is required for the brewing of malt liquors or distilling of liquor ; but no ik>eiioe re-
rewers, distillers, or others, excepting persons mentioned in the third pari^^ph of Sn^dng J^
jrticle 1, who sell such brewed or distilled liquors, shall take out a wholesale Lcence ^^^J||S!fe ^
}T the S€kle of such liquor, or be subject to a fine for the sale of liquor without licence ^°^ ^ ^^
i terms of Article 1 of this Act To obtain this licence no application need be made ^^^'

> the commission mentioned in Article 9 of this Act

9. There shall be a commission in each district and on every public digging^to Lioensiiig oom-
maider the applications for liquor licences, which commission shaU be styled '' The "^^"^^
bnmiission for Liquor Licencea"

10. This commission shall be constituted as follows : — On the public diggings the conatitutioQ of
pedal Landdrost^ and where there is no Special Landdrost the Mining Commissioner. <>»>>^>»M(»-

584 The Liquor Law.

In the districts, the Xianddrost of the district, who shall also be ex officio chairman of
the commission, and who shall be assisted by four members to be appointed by the

Tennofofflce. Government, after consultation with the State Attorney. This commission shall be
appointed for a period not exceeding two years with this understanding that
regardless of the date of their appointment, the Government and the State Attorney
shall, on or before the 1st December of every two years, appoint new members. The
retiring members may be re-appointed.

^oonunisBLi**' The chairman shall recommend someone to the Government to act as secretary.

Town Council to Where there is a town council on any proclaimed goldfield or stand-township, or
22^S,.^^** in any other town or village, such town council shall have the right to nominate and
to appoint two members out of their number, who shall be added to the Commission
for Liquor Licences.

Three members n. Three members of this commission shall form a quorum. When the votes
•quorum. ^^^^ equal the chairman shall have a casting vote, and in the event of there being no
Castinfrvote. quorum on the day and at the hour appointed by the chairman, the chairman shall
have the right to adjourn the commission till a day appointed by him, of which a
fresh notice must be given by him to the members.
oommiHion to The commissiou shall sit on the second Monday in the months of March, June,

t quarter}', g^ptember, and December, or as soon as possible thereafter, to deal with applications
for licences, etc.
NOjip«ci»i sit- No special sittings of the commission shall be held.

Bemuneration. 12. The members of the liquor commission shall receive a remuneration of £2

each for each day of sitting, and the secretary of the said commission £2 for each day
of sitting and 2s. 6d. for each application.

^noSSLSSs^ion , 13- The following persons shall not be eligible to be chosen or appointed, or if*
elected or appointed as such, shall not be able to remain acting as membei-s of tiie
(Commission for Liquor Licences : —

(a) The holder of anv licence for the sale of intoxicating liquors.
(6) Any brewer or distiller.

such licence as aforesaid, or with any brewer or distiller.

(d) Any person employed either directly or indirectly as an agent for the

purpose of appljdng for a licence for any other person, for any partner or
for any person thus employed as an agent.

(e) No person, the proprietor of a place for which a liquor licence has already

been granted, or for which application for a licence is being made.
(/) No police oflScer.
(gr) No person, either the proprietor or holder of any property ,^ or the agent or

manager of, or a partner in, any trade or business carried on upon any

f>roperty in possession of a liquor licence, or who has made application for a
iquor licence, or the holder of any bond on such property, shall take part in
the discussion or consideration of any application for or concerning any
licence upon such property.
(h) An un-rehabilitated insolvent.

(i) A person who, here or elsewhere, has had judgment against him of more than,
six months' imprisonment. Any person who accepts or continues in the
appointment as member of a Commission for Liauor licences, contrary to this
Article, shall be punished with a fine not exceeding £500, and imprisonment.

Procedure r«ap. ^^^ exceeding three years with or without hard labour.

UM^on for li- 24. For the obtaining of a licence legalizing the sale of wines, spirituous or matt'

Tbe Liquor Lmsv. 585

Uquors within this Republic, the applicant must for that purpose first send in an
application to the secretary of the Commission for Liquor Licences of the district or
the diggings in which he desires to carry on his business. The secretary shall at once
register the same in a book kept for the purpose, and have the same published as set
forth in Article 15, and lay the same before the commission at its first sitting.

The application must be accompanied by an amount sufficient to cover the costs
of publication, and carry a stamp oi 12s. 6d.

15. The application for the abovementioned purposes, shall, at least six weeks when appuc**
before the sittmg of the commission, be handed in to the secretary of the commission 2St in!""* ^
for liquor license for the district or diggings in which the place is situate, for which
application has been made. The secretary shall further cause the application to be

posted on the office door of the official entrusted with the criminal jurisdiction, as also PubUcaUon.
on the erf or on the house or room for which licences are asked, and shall cause it to be

f)ublished once at least in one of the local newspapers, if there are such, in the Dutch
anguage, and once in the Stdatscov/rant, to appear at least a month before the sitting
of the commission.

All objections and protests against the granting of any application must be sent objeouons and
in in writing to the secretary, and notice of the same must be given to the applicant p"*****^
by the person or persons objecting. This must be done personally or by registered
letter at least five days before the sitting of the commission.

This stipiilation shall not apply to objections made by officials of the State, or
officials of any town council.

Applicants for liquor licences must appear personally before the Commission for AppUcantB must
Liquor Licences. _ S?!^ ^"^'"

It shall be permitted to any applicant to be represented before the commission,
but only by advocates, attorneys, or law-agents, duly licensed and admitted according
to the laws of the land.

16. The granting of licences for the sale of any kinds of liquors on any ground where ucences
given out as a mynpacht, claim, bewaarplaats, machine-stand, or water-right ; or on p«>*»*^**^
stands situate on any of the said localities ; or on ground reserved in terms of Article

55 of Law No. 19 of 1895 (Gold Law) ; or in any compound, is totally prohibited.

17. No liquor licences shall be granted to — uoencee leftued

(a) A person who has had judgment against him, here or elsewhere, of more than ^
six months' imprisonment.

(b) Any person who is not residing in the South African Republic.
An un-rehabilitated insolvent.
Any person below 21 years of age.

Should it afterwards transpire that a licence has been granted to, or transfeired ucenoesnuUand
to any person incapacitated as above set forth, the licence shall be considered as null ^'°^^'
and void, and the building in which the business was carried on shall be closed
forthwith upon instructions of the Landdrost or official entrusted with the criminal
jurisdiction. Any licence-money paid therefor shall not be refunded by the
Government. To a person whose application for a liquor licence has been refused by Licences nbmd
the . commission, because of contravention of the Liquor Law, no licence shall be
granted within two years after such refusal. In the event of any licence being
cancelled by judicial sentence, no licence shall be granted for the same premises for the Licences cao-
sale of wines, spirituous or malt liquors for a period of two years from the date of such ^"^
judgment.

When a licence is, in terms of this Article, declared forfeited, and the licence-
holder notes an appeal, th9 licence shall, notwithstanding the appeal, be considered

586 The Liquor Law.

forfeited until the High C!ourt shall decide thereon, and the buildinsp or buildines shall
be closed immediately, and the sale of wines and spirituous or malt liquors prohilnted.
Nouoenoetocoi. No liquor liccncc whatsoever shall be granted to coloured person&

oured peraon. rpj^^ commissiou shall, in the hearing of the applications for liquor licences, take

Oomguints of into Consideration the complaints of the police and the detectives, as also the

^' complaints of the Inspector of Mines on the diggings, and limit the number of licences

Licenoet In pro- in proportion to the population of an area, so that no more than four licences shall be

uLtion. ^^ granted to a community ranging from one to 500 persons, and not more than one

licence for every 400 above the 500 white male persons over 16 years of age.

^foT*^fSaiSS ^® commission shall have the right to refuse new licences, or the renewal of

applications, existing liccuces, without stating any reasona The commission may grant a licence

under such conditions as thev shall stipulate, which conditions must be stated in

the licence. When the commission consider it necessary, they shall have the right to

AppUoants ex- examine any person under oath, and if it is discovered that the witness has made a

^ned under £^]g^ declaration, he shall be held to have committed the crime of perjury and be

punished according to law.

[The operation of Article 17, was suspended by resolation of the First Volksraad on 29th September,
1896, in terms of the following minute of the Executive Council].

RESOLUTION OF THE EXECUTIVE COUNCIL, ARTICLE 808,

DATED 22nd SEPTEMBER, 1896.

''Under discussion: Minute R 12376, 1896, containing a letter from iha
chairman of the Liquor Commission at Johannesburg and a petition of wholcMk
dealers in spirituous liquors, both in reference to Article 17 of the liquor Law;
further, four memorials from burghers of Pretoria and Zoutpansberg in relation to
the application of the liquor Law ;

''The Executive Council considering the petition of several firms at
Johannesburg, that have for some years been engaged in the wholesale traffic in
spirituous liquors, in reference to the application of Law No. 17 of 1896 (the
Liquor Law) and especially Article 17 of this Law ;

" Considering that according to the petition sent in, a strict application of
Article 17 of said Law on 1st January, 1897, the date on which the Law ia to oome
into force, will cause great losses to several bona fide dealers, to their emplo]^
and to other persons, who stand in relation to them ;

" Considerivg that it is the desire of the Executive Council to devote ifei
attention as much as possible to the alleged facts, and if possible to meet them;

" Considering that it is desirable to make transition regulations, previooB to
strict application of the letter of the Law ;

" Considering the contents of the memorials mentioned above in ref ereneo t9
the enforcement of the Law ;

" Considering that Article 17 of the said Law, as amended, has not been Ui
before the people for approval in the usual way ;

" Considering, in conclusion, that according to the resolution on this matfaTi
Article 876, dated 22nd July, 1896, the Honourable Second Volksraad hm
suspended the clause relating to the granting of licences to hotels along the roA
in order to have it laid before the people for approval, while on the omer hud 2
was explicitly resolved that the prohibition of the sale of liquor to natives Aoili

The Liquor Law. 587

in any case be applied, but no special resolution was taken in reference to Article
17 of the Liquor Law ;

'' Ite8(^ve8 : to request the Honourable First Volksraad,
''1. To authorise the Elxecutive Council to suspend the enforcement of

Article 17 of the Liquor Law (Law No. 17, of 1896).
"2. To instruct the Executive Council to draw up as soon as possible
according to circumstances, transition regulations in reference to the
licences that are to be issued and all matters in relation thereto, with
power to enforce these transition regulations immediately, in so far as
may seem necessary even in the course of this year.
*" 3. To instruct the Elxecutive Council to offer at the next session of the
Honourable Second Volksraad after proper publication in the Staata
Courant, according to law, definite araft regulations in reference to
the granting of licencea"

18. The chairman shall have the right, subject to Article 17 of this Act, to trans- TnuiarerofUoei
for licences from one person to another for the same premises where such business is ^^
carried on.

For each such transfer, a fee of ten shillings shall be charged, to be aflSxed in Tnmsferfee.
stamps to the application.

The commission shall have the right to transfer previously-granted licences from
one place to another, on payment of ten shillings in stamps as above set forth.

Of this application for transfer, six weeks' notice shall be given as set forth in
Article 15 of this Act.

When through fire or other unforeseen circumstances, such is urgently required, Tmufer in cm
the chairman of the Liquor Licensing Commission shall have the right, subject to sub- ^*^^'
sequent decision of the commission, to transfer a licence from one place to another
place, building, or room.

In special cases, the chairman of the Liquor Licensing Commission, has the right ^p|^*^ ^^^^'"^
to grant permission to licensed liquor dealers on application, to sell liquor also at other loL. ^ ^'
places for a period not exceeding six days, on payment of £1 per day in stamps aJBixed
to the permit.

19. Any person holding a licence for the sale of wines, spirituous or malt liquors, seiunp oontrmr
and carnring on his business in a manner or at a place contrary to his licence, shall be ^ ^^^'
punishea for the first offence with a fine not exceeding £50 ; for the second offence

with a fine not exceeding £100 : and for the third offence with a fine not exceeding
£200 ; and failing payment of these fines, the penalty shall be imprisonment, with or
-without hard lal^ur, not exceeding three, six and twelve months respectively. No
transfer of a licence shall be granted within six months after the conviction of the
holder of the licence for contravention of one of the stipulations of this Act

20. The decisions of the commission regarding the approval or otherwise of Decisiont o4
licences, transfer thereof, etc., shall be communicated as speedily as possible to the ^^'<>*""*^<>»»-
official entrusted with the issuing of the licences, and to the officials of the prosecution

within the limits of whose Jurisdiction the licence shall be granted, who shall then act
jn accordance with the decisions of the commission.

21. As soon as a retail licence, or a licence for roadside hotel shall have been Surety bond.

Cnted to any person who has applied for the same, such person shall pass a surety-
d before the official empowered to issue licences, and who is hereby authorised to
accept such surety-bond for the sum of £200 sterling, with two good sureties who
ahall be jointly responsible.

Form of surety bond in term of schedule A.

588 The Liquor Law.

uuflt Affix siirn 22. Any person having obtained any -licence, either for wholesale or retail, as

spicuousp^e aforementioned, shall place or affix in a conspicuous place to the wall on the outside
of the building where such wines, spirituous or malt liquors are sold, a signboard on
which, in large, visible and legible letters of at least two inches long, shall be painted
his full name, or in case of partnerships, the name or title of the firm or partnership,
and underneath this name or title, the words " Licensed Dealer " or '* Dealer in wines,
spirituous or malt liquors, by wholesale or retail," as the case may be, and shall keep
such signboard in good repair during the continuance of such licence, and in default
of affixing such signboard, or of keeping the same in a good state as aforesaid, he shall
be liable to and incur a fine not exceeding £5 ; and in case the full amount of the fine
imposed, together with the costs, be not paid within three days of the decision of the
judge, then to imprisonment not exceeding one month, unless the fines and costs be
previously paid. But nothing in the law contained shall be construed as if any sign-
tx)ard were required to be affixed and placed on an hotel, boarding or lodging-house,
or club.

Penalty for ii- 23. Auyouc who has obtained no such licence as aforesaid, and who shall affix
l^boiJS.'^*"*^ any such signboard on front of his house, shop, or store, or any other place, shall be
punished with a fine not exceeding £50, and in default of payment, imprisonment
not exceeding three months.

Noooiour^PCT- 24. A licensed liquor dealer shall not be permitted to employ a coloured person

fSoyed"to 8di behind any bar, to sell, give, or dispose of wines, spirituous or malt liquors to any
*''^''*- customer.

Upon a contravention of the above regulation, the holder of the licence will be
punished with a fine not exceeding £25, and in default of payment, imprisonment,
with or without hard labour, not exceeding three months.

2Xo back or side 25. A Ucenscd cantecu, bar, or beer-hall keeper in a town, village, stand-town-

Men^AceH^ ship, or diggings, shall not allow any customers to enter or leave his apartment set
«***! aside for the sale of drink by a back or side door, or through a door which connects

with a shop or business, under penalty for the first ofience of a fine not exceeding £10,
or, in default of payment, imprisonment not exceeding one month ; for a second
ofience a fine of £20, or, in default of payment, imprisonment not exceeding three
months ; for a third offence, a fine not exceeding £50 sterling, or, in default of pay-
ment, imprisonment not exceeding six months, with forfeiture of licence.

No other busi- 26. It shall uot bc lawful for a licensed liquor dealer to carry on any business in

»^preniiiK«? the same room, other than the sale of liquors under this law, and tobacco, cigars, and
cigarettes by retail.

It is prohibited to serve liquor, either for money or otherwise, on the same
premises where a shop business is being carried on.

On a contravention, the holder of the licence shall be punished with a fine not
exceeding £25, and, in default of payment, imprisonment not exceeding two months.

^^rion " ^uj?ed ^^* ^^ ^^^^^^ ^^ ^ liccnscd dealer in liquors under the provisions of this Act, allow*

to allow an- ing auothcr person to manage or supervise the building or buildings for which, or in
t^maiuSI?^" which, he holds a licence to sell spirituous or malt liquors, during his absence or in
any other way, for more than 28 consecutive days, without previous written permis-
sion of the Lfiuiddrost or official of the criminal jurisdiction, he shall be liable to a fine
not exceeding £50, and, in default of payment, imprisonment not exceeding three
months.

Tern porar V 28. Uoon Written request of both parties, signed in the presence of two witnesnee,
tnu^er of li- ^}^^ Lanodrost or official of the criminal jurisdiction shall have the right to tempoiarily

The Liquor Law. 589

'ti'ansf er any licence under this Law to another person to manage the said business as
aforesaid for the licensed dealer in liquors, for a period to be fixed by him. During
such period, such manager shall be responsible for all contraventions of this Law, or
•any subsequent laws, regulating the sale of liquor, in a similar manner as set forth in
Article 49 of this Law.

29. No licence-holder under this Act will be permitted to sell liquor or keep open no uquor to b
any rooms or apartments in his building or buildings for the sale of such liquors as dby8,^&c.."o
aforesaid, or permit liquor to be drunk or used therein during any part of the Sunday, an?6Tm.^'"
Good Friday, Easter Monday, Whit Monday, Dingaan's Day, and Christmas Day, or
between the hours of nine in the evening and six in the morning of any other day,

except in the hotels, boarding and eating-houses approved by the commission, wherein
liquor may be supplied to lodgers and boarders at meals as required by them ; with
the understanding that nothing contained in this Article shall have reference to the
sale of liquor in clubs approved by the Government

Contraventions of the above stipulations will be punished with a fine not
exceeding £25, or, in default of payment, imprisonment with or without hard labour
not exceeding two months.

30. The Landdrost or official entrusted with the criminal jurisdiction shall have ^^^^^ *Su^*?
the right to grant to licensed retail liquor dealers, permission to keep open after 9 olm?on work
p.m. until 12 p.m. on working days. This permission may be granted for a period not *"«^^y*
exceeding one month, with right of withdrawal. The permit shall carry a stamp
calculated at 2s. 6d. per day. Any person keeping open without permission as above-
mentioned, shall be punished with a fine not exceeding £25, or, in default of payment,
imprisonment with or without hard labour not exoeedmg two months.

31. Any coloured person found in possession of wine, spirituous or malt liquors, coiouredpMiioM
provided he is not lawfully carrying such wine, spirituous or malt liquors for his o" wmeTS**'
master, shall be punishea with imprisonment, with or without hard labour, not
exceeding three months ; lashes may also be imposed, not exceeding twenty-five. The

liquor found in his possession shall be declared forfeited for the benefit oi the public
revenue.

32. Any person who issues a written consent or a permit to any native not in his Permito to ni
employ, or who falsifies any written consent or permit, or any native who issues such ^^^^^ ^
permit either for himself or for others, shall be punished with a fine not exceeding

XlOO, or imprisonment, with or without hard labour, not exceeding six months. In
ithe case of natives, lashes may also be added, not exceeding twenty-fiva

33. No person shall, with or without a licence, sell, give, exchange, or in any Pemons under i
other way dispose of, wines, spirituous or malt liquors, to any child under 16 years, or SSnotbLiup
to any person already under the influence of strong or intoxicating liquor, under 5,{^i**^^'J
Density of a fine not exceeding £50, and, in default of pajnnent, imprisonment, with or penona ui^e

-*^.i_ X I. J 1 1. ^ J* • i.u ir f/ » r » influence of 11

-Without hard labour, not exceedmg six months. quor.

34. No person shall, with or without licence, give or in any other way dispose NoUquor to pei
-of or hand out wine, spirituous or malt liquors to any person after being warned by intori^tSu""
the Landdrost or official entrusted with the criminal jurisdiction, or by the husband or

^fe or any other relation of such person, or bv any other person interested in
bim, that he or she is in the habit of getting intoxicated, and after being requested by
«uch Landdrost or official entrusted with the criminal jurisdiction, relation or other
interested person, not to sell or dispose of wine or any other intoxicating liquor to
such person as aforesaid. Any contravention of the stipulations of this Article or
any portion thereof, shall be punished for the first offence with a fine not exceeding

590 The Liquor Law.

£15, or imprisonment, with or without hard labour, not exceeding three months ; and
for every subsequent offence, imprisonment not exceeding six months, with or without
hard labour ; and shall be liable in addition to pay compensation for fines or any otiier
injury to the person to whom he shall have sold or handed such drink as afOTeaaid,,
and which such person may have incurred in consequence thereof ; as also to pay
compensation for all damages which such person, acting under the influence of liquor,
has occasioned or caused to any other person, or to the property of any other person. In
case of any sale of wines, spirituous or malt liquors in any case as aforementioned od*
credit, the purchase amount shall not be recoverable in any Court of Law.

Aroomoda^onto 34a. In futurc uo liceucc for roadside hotels shall be renewed, unless the appli*
foiSSdehoteis cant produccs a certificate from the Fieldcomet of his ward, or Landdrost otnift
district, declaring that on the place for which the renewal is desired, there is proper
accommodation for six persons and stabling for eight horses, mules or donkeys.

In case of new applications, the party to whom a roadside hotel licence has beea
granted, shall be bouna to provide proper accommodation for people and animals as>
above set forth within two months from the date of the granting of such licence.

Failing compliance with the stipulations contained in section 1 of this article, the
licence shall be refused by the commission.

Failing compliance with section 2 of this article, the licence shall be withdrawn
by the commission or Landdrost

Hotel, boaidinir 35. No hotcl, boarding or lodging house licence, in terms of Act No. 13 of 1887^

houMU^ncM^ will be issued in towns, villages, or public diggings, for buildings in which wines and

spirituous or malt liquors are sold, without the consent of the commission, who shall

first satisfy themselves that the buildings are suitable for that purpose, and that the

business conducted therein is that of a bona fide hotel, boarding or lodging house.

*^* rraiiSw m ^^' ^^^ ^^® better maintenance of public peace and order, it shall be lawful for
caMs of breach any Lauddrost, Justice bf the Peace, Fieldcomet, or police officer, at all times to enter
of the p<»ce. ^p^^ g^^y buildiug, evf, place or stand within his jurisdiction, belonging to any licensed
liquor dealer where any upi*oar or breach of the peace is taking or has taken plaoe^
or whenever persons may be found there at hours and on days forbidden by the law,
or which may be found to be frequented by men and women of acknowledged bad
character, in order to remove or to arrest, or take into safe custody, any uproarious
peace-disturbing, or drinking persons found there, not being bona fide residents thereiiv
and should the holder of the licence of any such house or his representative or sulh
ordinate refuse to allow any of the above-mentioned officials to enter, or hinder or
resist them in the execution of their duty, he shall be punished with a fine not
exceeding £50, or in default of payment, imprisonment witn or without hard labouTp
not exceeding six months.

It is further understood that in case of refusal to allow the officials aforementioned
to enter, they shall have the right to enter the place by force.

Biffhtto close 37. The Landdrost or official entrusted with the criminal jurisdiction, or any
in case^i^ Justice of the Peace, Fieldcomet, or Assistant Fieldcomet, shall have the right, wbeD
bran^ of the j^j^y disturbance or breach of the peace takes place, or has taken place, to (uoae up, or
to have any places where liquor is sold closed up, for a period not exceeding one moDth,
and should any person keep open against the order of the said official, he shall be
punished with a nne not exceeding £50, and, in default of payment, imprisonment with
or without hard labour, not exceeding three months, ana his licence may be dediuMi
forfeited.

The Liquor Law. 591

The official above-mentioned shall in such case within three days send a full
report, accompanied by all the documents, to the State Attorney, who is hereby
siuthorised, should he think fit to reduce the above stipulated period.

88. Any person found by the Landdrost, f^eldcomet. Justice of the Peace, or Dnmkenpenons
police officer, in a state of drunkenness, or drunk and incapable, or drunk and disturb- 3r^,idthoSra
ing the peace, whether in a street, road or lane, or in a public building, store, shop, w»n»nt,
botel or anywhere else, may be arrested without a warrant, and should this occur m
the evening, be locked up m gaol or in a reformatory, and shall in any case without
ielay be brought before the landdrost or Justice of the Peace the following day or as
30on as possible thereafter, provided it is not a Sunday or public holiday. Every such
person shall, if found guilty, be fined a sum not exceeding £1 for the first offence and,
m default of payment, imprisonment with or without hard labour, and with or without
spare diet, not exceeding lourteen days ; and in case of repeated contraventions with a
Kne not exceeding £5, and in default of payment, imprisonment with or without hard
labour and with or without spare diet, not exceeding one month. In cases of natives
thus arrested, lashes may also be added, not exceeding fifteen for the first offence, and not
exceeding twenty-five for subsequent offences.

39. Any Landdrost or official having similar jurisdiction. Public Prosecutor, search wwiMto
Etesident Justice of the Peace, Justice of the Peace or Fieldcomet, shall, if satisfied by uweu ground-
%n affidavit that there exists a well-grounded suspicion that at any place in any build- l^dgta?*^*^"
ing, room, or in any vehicle whatsoever, wine, spirituous or malt liquors are sold or

kept with the intent to sell, without the owner, occupier, or caretaker holding a
licence under this Law, be authorised to issue a warrant to search the house. The
person or persons executing this search warrant shall have the right if necessary to
3nter the house or place, or vehicle mentioned in the warrant by force, and to seize
9kny wines, spirituous or malt liquors, together with the casks or bottles and cases
p^hich contain the liquors, and to take into lawful custody the person or persons
in whose possession such liquors are found.

The owner, occupier or assignee as abovementioned, if found guilty, shall be
punished in terms of Article 1 of this Act, and everything which has l^en seized shall
36 forfeited for the benefit of the public revenue, with the understanding however, that
ill reasonable expenses of seizure shall be compensated out of the proceeds of the goods
seized.

40. Whenever any person shall give information under oath to the Landdrost, Besi- Procedure in
lent Justice of the Peace, or official having similar jurisdiction, and shall show reasonable p^tedpei^
rrounds why he suspects anyone of selling any of the liquor aforementioned without

[ licence, it shall be lawful for such Landdrost, Resident Justice of the Peace, or official
^ith similar jurisdiction, within his jurisdiction to summon such suspected person
lefore him, as also any other person whom such official may consider able to give good
vidence in such case to be examined before him, on the complaints against such a
uspected person, and should such persons thus summoned as witnesses refuse to
ppear or refuse to be examined under oath and give evidence as aforesaid, it shall be
i^iTrf ul for the said Landdrost, Resident Justice of the Peace, or other official as afore-
nentioned, to place every such offender in custody for a term not exceeding one month,
•r till such time as he shall no longer refuse to give evidence as aforesaid.

41. Any Landdrost or official having similar jurisdiction and any Resident Justice ^""'^^^jj*^
£ the Peace shall be authorised if reasonable grounds of suspicion are brought to his of tiaSsMt.
lotice that any person is dealing in liquor contrary to the provisions of this Act, to

rfant a search warrant to search any shop or other premises where it is suspedyed
tqnor is kept

L 2

592 The Liquor Law.

Bight to enter 42. Any Landdrost or official having similar jurisdiction, Resident Justice of the
■^iinpec • p^g^j^^ Justice of the Peace, Fieldcomet or Public Prosecutor, Chief of the Police, or
Chief of the Detective Department, or any police officer authorised by them in
writing, shall have the right to enter any house or room where wine, spirituous or
malt liquors are sold, and demand inspection of the licence. When this is not pro-
duced and no just reasons are given for the non-production thereof, the licensed liquor
seller shall be punished with a fine not exceeding £10, or with imprisonment not ex-
ceeding one month.

judfnnent en- 43. Whenever any licensed dealer shall be tried for any contravention of this law
*^'nce ^wh«i ^® shBll hand his licence into court This document shall be sufficient proof that he is
found guuty« the liccnscd liquor seller meant in the case in Question. Should he be found guilty
the Court shall endorse the judgment at the back thereof, but in case the judgment be
quashed on appeal, such shall be endorsed on the back thereof by ' the Lower Court
Should the accused not produce his licence or give no valid reasons, he shall at the
same trial and without the necessity of any further proceedings be punished with a
fine not exceeding £10, and, in default of payment, imprisonment not exceeding one
month.

How tommons When a licensed liquor dealer shall be summoned for a contravention of an?
m^ be served; j^guJatiou of this Act or any subsequent Acts regulating the sale of strong or mm
liquors, and the messenger of the Court is not aUe to serve the summons peraonally»
he may leave a copy of the same in the building where the liquor was sold. Ani
should the licensed liauor dealer not report himself within fourteen days thereafter to
the Court of the Landdrost or official of the criminal jurisdiction mentioned in tbe
summons, the Public Prosecutor shall appl v to the Court to have the said building or
buildings closed forthwith for the sale of strong or malt liquors. The Court i£all
then have the right to order, without any further process, that the re(]^uest be complied
with and to cancel the licence. The registrar of the Court after having endoraeci the
licence shall inform the secretary of the Commission for Liquor Licences of such
person.

unieviioenoeia 44. When any steps are taken against any dealer, seller or owner of liquor iriio
SToo^et^ sells liquor without a licence or contrary to the terms of his licence, such person shall
"'*"**°***' be considered as unlicensed, or not to hold the licence under which he is accused of

having traded, until at the trial of the case he produces his licence or proves that he

has one.

If premiMs are *5. Should Buy Ucenscd Uouor dealer permit any of his premises or rooms to be
uied for im- ^^scd f or immoral purposes, the Landdrost or official entrustea with the criminal Juiie-
mora pur- ^-^^-^^ ohaXl havc the right, after satisfactory proof, to declare the licence forfeited
and to close the said premises or room for the lurther sale of liquors under this Aet

Action cannot be 46. It shall uot bc lawful for auyouc to institute any proceedings or brinff a

r'e^Ji^ 'of action at law for recovery of any sum of money for or on accoimt of any wniei^

money due for spirituous or malt liouors sold on credit in any quantities less than the quaati^

^"^' allowed to be sold under a licence mentioned under '' 6 " of Article 4 of this law ; an

in case any person shall take or receive from anyone any pledge by way of aecnriij

for the payment of any sum or sums of money for such liquors thus due, or in mj^

ment thereof take or receive any article whatever in place of money, he shaU m

liable to a fine not exceeding £20 for each pledge so received and accepted by him,aai

the person or persons to whom such pledge may belong shall have the same r^^ to

the recovery of such pledge or the value thereof, as if it had not been given ae e

pledge.

The Liquor Law. 593

he receives a
ooiwidention.

47. When any one who has no licence to sell by retail, gives to any other person unucenaed per-
liqnor for which he receives a consideration, although he represents it as though the ^or^ol^^di
consideration received is for something else, he shall, notwithstanding that such con-
sideration is indeed and actually partly given for something else, be convicted for the
sale of liquor without a licence, and be punished with the punishment laid down for

this contravention.

48. Public Prosecutors of the different Courts shall be bound in all cases where seaiching en-
natives are brought up for drunkenness to institute a most searching enquiry as to the SvSwe SlSd
cause of the drunkenness, and the place where and the person by whom liquor has ^^^'"^
been supplied them, for the purpose of prosecuting such person for illicit liquor trade^

In the event of the native charged with drunkenness refusing to ^ve the name
of the person who supplied him with liquor, or to point out the place where he
obtained the liquor, he shall be punished with' a fine not exceeding £5, or imprison-
ment with or without hard lahour not exceeding one month, and with or without
lashes not exceeding twenty-five.

49. Every licensed liquor dealer shall be responsible for any and every contraven- ^^^ ^^'
tion of this Act which may take place on his premises, even should such contravention ^""p®
"be caused by his servants, subordinates, or representatives, or any other person.

Should it however clearly appear that such contravention was caused with the intent
to injure such dealer in liquor as aforesaid, or to have him punished, such liquor dealer
«hall not be responsible for such contravention.

50. It is prohibited for any licensed dealer in liquors to give, sell, barter, or no pouoemaa or
dispose of in any other manner, any wines, spirituous or malt liquors to any police ^u^^J^tS
official or turnkey during the time he is on dut^ or on guard, under penalty of a fine uquorwhUeon
not exceeding £10, or imprisonment not exceedmg one month.

51. A police officer shall neither directly nor indirectly have any interest in any No poUoe onicer
business where wines, spirituous or malt liquors are sold, neither shall he be entitled ^re^hila^
to receive, either directly or indirectly, any gift or favour from any licensed liquor *^*°**** ****"^-
dealer. In case of a contravention, the convicted police officer will be punished with

A fine not exceeding £500, and imprisonment not exceeding twelve months, with or
without hard labour.

52. All contraventions of this Act may be brought before and decided by the
Lianddrost or official with similar jurisdiction, or Resident Justice of the Peace within
whose jurisdiction the same may occur.

53. Nothing contained in this Act shall be taken to mean or be construed to sheriffs do not
require a licence to be taken out for the sale of any of the liquors aforementioned by ^^^i" licence
«b Sheriff or other official acting under authority of any Court, Judge, or Landdrost, or

by trustees in insolvent estates, or executors testamentary and dative.

54. The regulations with regard to public diggings are also applicable to such oroand under
pieces of ground as have been either by law or by Government resolution placed J**'**^o*'on.
Tinder the jurisdiction of the official on the diggings.

55. The Government may allow a part, but not more than one-third, of the Fines to inf6nn-
imposed and paid fines to go to the informer. *°*^

66. All previous Acts and Regulations for the sale of wines, spirituous or malt ^^'^ISJl^
liquors hitherto having force at law, are hereby repealed.

594

The Liquor Law.

57. This Aet comes into operation on the 1st of January, 1897.

The following Articles retain force of law in accordance with a resolution of the
Second Volksraad :— Article 875, dated 22nd July, 1896 ; Artkde 4^ letter d;
Article 7, letter d ; and Article 34a.

(Signed)

S. J. P. KEUGEE,

State President.

Dr. W^ J- LETDS.

State Secretary.

Qovemment Office,

Pretoria, 17th August, 1896.

The Liquor Law. 695

INDEX.

£lieriffi9

Pa«b.

Application for Licence ... ... ... ... ... ... ... 585

Aocommodation to be provided ... ... ... ... ... ... 590

Brewing and Distilling ... ... ... ... ... ... ••• 583

Back and Side Door ... ... ... ... ... ... ... 588

Breach of Peace ... ... ... ... ... ... ... ... 590

Coloured Persons ... ... ... ... .„ ... .- 588,589

Xhmnken PersonSi Arrest of... ... ... ... ... ... ••• 591

Fines to Informants ... ... ... ... ... ... ... 593

Growers and Producers ... ... ... ... ... ... ... 582

Hotel and Boarding-House ... ... ... ... ... ... 590

Immoral use of Premises ... ... ... ... ... ... ... 592

Jurisdiction... ... ... ... ... ... ... ... 593

liicences, where granted ... ... ... ... ... ... ... 582

liicences, various kinds ... ... ... ... ... ... 583

Xiicence Fees ... ... ... ... ... ... ... ... 583

Xdcensing Commission... .. ... ... ... ... ... 583

licences Refused... ... ... ... ... ... ... ... 585

licences in proportion to population ... ... ... ... ... 586

Xdcence Holder Absent ... ... ... ... ... ... ... 588

JLate Permits ... ... ... ... ... ... ... 589

Xdcencee Endorsed ... ... ... ... ... ... ... 592

lioney Due for Liquor... ... ... ... ... ... ... 592

No Coloured Person Employed ... ... ... ... ... 588

Natives Drunk ... ... ... ... ... ... ... 593

Objections to Licence ... ... ... ... ... ... ... 585

Prohibited Areas ... ... ... ... ... ... ... 585

Persons under 16... ... ... ... ... ... ... ... 589

Persons Habitually Intoxicated ... ... ... ...• ... ... 589

Policemen and Turnkeys ... ... ... ... ... ... ... 593

Hight of Entry ... ... ... ... ... ... ... 590

Hight to Inspect Licence ... ... ... ... ... ... ... 592

Besponsibility of Dealer ... ... ... ... .. ... 593

Selling WiUiout Licence ... ... ... ... ... ... ... 582

Special Licences ... ... ... ... ... ... ... 587

Selling contrary to Licence ... ... ... ... ... ... ... 587

Surety Bond ... ... ... ... ... ... ... 587

^ignooarQ ... ,,, ... ... ... ... ... ... ooo

Sundays and Holidays... ... ... ... ... ... ... 589

Search Warrants... ... ... .. ... ... ... ... 591

Suspected Persons ... ... ... ... ... ... 591

Summons, how served ... ... ... ... ... ... ... 592

593

Transfer of Licence ... ... ... ... ... ... 587,588

Unlicensed Persons ... ... ... ... ... ... ... 593

XVI.

The Gold Law.

(S. H. Barber's Edition.)

LAW No. 21 of 1896.

DIFFERENT GOLD LAWS.

Law 2 of 1872.

„ 7 of 1874.

„ 6 of 1875.

„ 8 of 1885.
Modification of Law 8 of 1885 (29th July, 1886).
Appendix to Law 8 of 1886 (7th March, 1887).
Law 10 of 1887.

„ 9 of 1888.

„ 8 of 1889.

„ 8 of 1890.

„ 10 of 1891.

„ 18 of 1892.

„ 14 of 1894.

„ 19 of 1895.

.. 21 of 1896.

The Gold Law.

597

LIST OF CASES.

2.
3.

9.
10.
11.
12.

14.

15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
20.
27.
28.
29.
30.
31.
82.
33.
34.
35.
36.
37.
38.

•»■•

M«

•••

Aanoui op Law.
62
81
136

Berea Syndicate vs, Leyds, N.O.
Berriman Syndicate vs, Simpson ...
Bezuidenhout r«. Worcester Q.M. Go. ...

Blomfield vs. The Mining Commissioner of Johannesburg and F. J. Bezoidenhout

j*"^. ••» ... ... ... ... ...

Boyne and Nightingale vs. The Spitzkop G.M. Co. ...

Cathcart vs. The Main Reef G.M. Co.

Charlton vs. The State

Chumleigh Syndicate vs. The State and The Rand Exploring Syndicate

Chums Syndicate vs. The Rand Exploring Syndicate

Cohen vs. The Johannesburg Pioneer G.M. Co.

Cohen, Goldschmidt k Co. vs. Stanley and Tate

Collins vs. Hugo and The Standard Bank

Curtis vs. The State

Curtis, N.O. vs. The Mining Commissioner of Johannesburg and the Johannesburg
Township Company

Dell vs. The State

Donovan M. The Turflfontein Estate

Doyle and others vs. Leyds, N.O., and The Rand Exploring Syndicate (trial case)

Doyle and others vs. Leyds, N.O., and The Rand Exploring Syndicate (exception)

Du Preez and others vs. Meyer and Van der Walt.

Edwards vs. The Britannia Company

Eloffiw. Leyds, N.O.

Frische vs. The Modderfontein G.M. Co. and The Mining Commissioner of Boksburg 26, 46 & 48

Gauf vs. The Modderfontein G.M. (>>. and The Mining Commissioner of Boksburg 26, 46, 48 & 64

Gilbaud & Co. i7«. Walker and others ... ... ... ... ... 34 & 62

62 A; 149

34 A; 62

• 28

142.

34 A; 62

107

144

21
3
86
74
31 k&l
86
62

Ginsberg vs. The Gauf Syndicate and The Mining Commissioner of Boksburg ...

Henry Nourse G.M. Co. vs. Eland

Humphreys vs. The Claim Inspector of Heidelberg and Symons and Lys

Jewel G.M. Co. vs. Oosthuizen

Jooete r«. Carlis and Creewel

Joseph Klimke vs. Ludwig Pogge, Frans Zboril and Herman Seelig

Kempin vs. The Modderfontein G.M. Ca and The Mining Commissioner of Boksburg

Kraft vs. Bok, N.O., and The Witwatersrand G.M. Co.

Langlaagte Estate G.M. Ca vs. The Crown Reef G.M. Co.

Lindum G.M. Ca vs. The Sexagon Syndicate

Madeline Reef Syndicate vs. Coetzee and others

Mar^ vs. The Mount Mard G.M. Ca

Moolman and Coetcee vs. Schaffe and Drury ...

Nabob G.M. Ca vs. Phoenix G.M. Co. ...

Nioolls vs. Leyds, N.O. ...

•••

15, 83 k 117

149

(Appendix C)

15, 83 k 117

31 &51

31, 60 & 62

127

65, 70 A 149

55, 125 & 126

28 A; 30

15, 83 k 117

XVI.

The Gold Law.

(S. H. Babbeb's Edition.)

LAW No. 21 or 1886.

DIFFERENT GOLD LAWS.

Law 2 of 1872.

„ 7 ot 1874.

„ 6 of 1875.

„ 8 ot 1885.
Modification op Law 8 of 1885 (29th July, 1 _
Appendix to Law 8 of 1886 (7th March. 1887).
Law 10 of 1887,

„ 9 ot 1888,

„ S of 1889,

„ 8 ot 1890,

„ 10 ot 1891

„ 18 ot 1892,

. U of 1894

. 19 of 1896.

„ 21 of 1896.

The Gold Law.

LIST OF CASES.

Aancu or Ltr.
. Berea Syndicate t». Leyda, H.O. ... ... ». « _ tH

L Bwrimoo STDdicate tw. Simpaon ... ... ... ... ... 81

-, BeEnideohoatn*. WoTOMterG.M. Co. ... ... „ ... ... 136

. Blomfiflld tv. Tho ^'ning GoomuBSUHMr oC Johftiuie6l>Qiff and F. J. Bwnid^nliont,

jun. ... ... ... ... ... ... ... 62 ft 14»

: . Bojne and Nightingale i>«. The Spittkop Q.M. Co. ... ... ... ... 31 ft 82

. Calhcart t». The Main Reel G.M. Co. ... ... ... ... -28

. Charlton m. The State ,„ ... ... ... ... ... 142 .

: Chumleigh Syndicate ». The State and The Band ExploriDg Syndicate ... 83

L Chatns Syndicate tu. The Band Exploring Syndicate ... ... 74

'. Cohen rs. The Johannesbarg Pioneer QM. Co. .. ... ... S3

. Cohen, GoldschmJdt ft Co. m. Stanley and Tate ... ... ... ... 34 ft 62

I. Collins Da. Hugo and The Standard Bank ... ... ... ... 107

L Cnrtia M. The State

1. Cnrtis, N.O. rt. The Mining ConuoiaBioner of Johannesburg and the Johannesbnrg

Township Company
L Dell w. The State ... ... ... ... ... ... 21

L Donovan IV. The Tnrffontein Estate ... ... ... ... ... 3

'. Doyle and others tu. Leyds, N.O., and The Rand Exploring Syndicate (trial case) 88

L Doyle and,otliers tu. Leyda, N.O., and The Band Exploring Syndicate (exception] ... 74

I. Da Preex and others vt. Meyer and Van der Walt. ... ... ... SI ft Al

L Edwards va. The Britannia Company ... ... ... ... ... ^

. Eloff... Leyda, N.O. .. ... ... ... *

L Trisidie sa The Hoddwfoitdn G.M. OOb and Tlw Uining OanmlflBlonBr of Bokabwg 9^0"^
I. Gaotna The ModdvfaotrinG.H. Co. and Tlw Mining OcmmiMeaflr of Bokibwv 98,4^48***
L Oaband ft Co. «a WaIk«andatltMS ... ... ... ... .- ** '^

i. GinsUjrg v-t. The fiauf Sj-ndical* and The Mining Comtoiasioner of Boluburg ... W, 83 1 HT

I. Henry NouraeC.M. Co. i«. Eland ... ... ... ... ... **

r. Hnmiihreya n. The Claim Inspector of Heidelberg and Symona and Lya ...

i. Jewel G.M, Co. tw. Oosthuizen ... ... ... ... - **

\. Jooste !«. CarliB and Creewd ... ... .. ... .- (AR*«li»C)

t. Joseph Klimbe v». Ludwi^ I'ogge, Pnns Zbortt wid Hennan Seelig ... '- „ . . ,

1. Kcmjiin M. The ModderfoDUtD tl.M. Co. and Tbi Mining Comminii
!. Kmft t* Bok, N,0., aiid The Wltwaterinmd O.M. ^~^ ...
I. L«ii|-UHgt« Estate O.M. Co. w. The ('nmri P.<.J i i
I. Lindnm O.M. Co. la. Th«

. Madeline Bcol SyudlcaU <

. Mari «- The Mount V '

. Moolnum and

. Kabob G.M. Co.

. :»ft 149

li.lft 126

»ft»)
'Jft JIT

L4^

698 The Qold Law.

AancLB or Lay.

40. Nigel Co. vs. Croft and The Beatrice Syndicate ... ... .. ... 66

41. Nonpareil Syndicate tw. Leyds, N.O., and The Rand Exploring Syndicate ... 74

42. Paarl Pretoria 6.M. Go. vs. Donovan and Wolff, N.O. ... ... ... 63

43. Pearce t». Olivier and others ... ... ... "* ... 61

44. Pioneer G.M. Go. and The Paarl Ophir 6.M. Ca iv. Gutmin and Graham ... 22
46. Rooth, q.q. vs. The State ... ... ... ... ... 21

46. Rothwell va. The New Rietfontein Estate Gold Mines (Ltd.) and Leyds, N.O. ... 28

47. S. Syndicate tw. John Ballot G.M. Co. ... ... ... ... 63

48. Salisbury G.M. Co.- «4. Klipriviersberg Estate and G.M. Co. ... ... ... 127

49. Schuler t». Sacke and Saenger ... ... ... ... ... (Appendix 0)

60. Schweizers Claimholders Rights Syndicate va. Rand Exploring Syndicate ... 86

51. Schweizers Claimholders Rights Syndicate vs. Rand Exploring Syndicate(Champerty) (AppendixC)
62. Sheba G.M. Go. vs. Vaatin, Millboume and Steers... ... ... ... 60 & 127

53. Spitzkop G.M. Co. vs. Stanley and Tate ... ... ... ... 34 & 62

54. Stanley i7«. Goldschmidt & Co. ... ... ... ... ... 34^62

55. State Attorney v«. Lionel Phillips and others .. ... ... ... 144

56. State v«. James Bacon ... ... ... ... ... ... 146

57. Steyn vs. Johnson and The Diggers' Committee of Witwatersrand ... ... 65

58. Steyn vs. Bezuidenhout ... ... ... ... ... ... 61

59. Stow and others tv. Chester and Gibb ... ... ... ... 26^46

60. Sylvester vs. The State ... ... ... ... ... ... 142

61. Sylvester vs. Jacobs ... ... ... ... ... ... 66

62. Taylor and Claridge i». Van Jaarsveld and Nellmapius ... ... ... 31 &61

63. Tinling vs. Lang ... ... ... ... ... ... 72

64. Underwood vs. Bamato Bros, and The Mining Commissioner of Boksbnrg ... 86

65. United Langlaagte G.M. Co. vs. The State and The Langlaage Royal and The Rand

\7. JXL. V>0. ... ... ... ... ... ... ... ^A

66. Van Diggelen vs. Leyds, N.O. ... ... ... ... ... 02

67. Van Ryn G.M. CJo. vs. New Chimes G.M. Co. ... ... ... ... 128

68. Williams vs. The Geldenhois Estate and G.M. Co, and Leyds, N.O. ... 02

69. Witwatersrand G.M. Co. vs. Young ... ... ... ... 16, 54, 83 & 117

The Gold Law. 699

LAW NO. 21 OF 1886,

On the Diggino for and Deaung in Precious Metals and Precious Stones

WITHIN THE South African Repubuc.

As aToended and approved of by (lie Second Volkaraad Resolution, Article 1S58,
Jiuguet S^lh, 1896, and accepted for notice by the Honourable the First Volkaraad
under Article 1-564^ SeptevnheT 14th, 1896.

CHAPTER I.
General Provisions.

1. The right of miniDg for and disposal of all precious stones and precious metals Theriffhtof <»•.
belongs to the State. SSS ^oSS;

2. This law is applicable to diamonds, mbies, gold, and such other precious stones the sta^^
and precious metals as the State President, with the advice and consent of the ^ii*^to^.
Executive Council, with reference to this article of this law, shall make known. mondt, Ac.

3. The words " public diggings " shall signify a proclaimed area thrown open by M«»Jnjo'**p«b-
lawf ul authority for prospecting, digging, and mining. The word " claim ' shall ° «wn«*
signify either that portion of the fields on which a person or persons or companies

liave obtained a legal right to dig or to prospect, or the right to dig or prospect on ciaim.
fiuch a piece of ground. "Private grouna" shall signify the ground belonging to PHvate ground,
private persons or companies, as shown by the title deed or deed of transfer.

" Government ground " shall signify all ground belonging to the State. Government

The words " coloured person " shall signify every African, Asiatic native, or coiouredpemm.
coloured American person, doolie or Chinese.

" Unwrought gold " or " unwrought precious metal " shall signify gold or precious unwroughtgoict
metal in whatever form, which, although smelted, is not manufactured or made up
into any article fit for trade. It includes also raw gold or other precious metaJ,
amalgam, and alimes.

Further, all words shall be understood in the sense in which they are ordinarily words to be un.

noo/1 dentood in the

"**^^ tenee in which

In the case of Donovan vs. Tht TurffonUin EstaU (decided leth September, 1896, Offl Rep., VoL IL, theyareordin

part 3, p. 2^), the question was whether the plaintiJBf was entitled to dig for clay for the purpose of *"^ ^^*^^
making bricks, etc., on a certain piece of nound leased to him by agreement of I2th December, 1891.
Article 7 of the an'eement of lease gave thelessee the right ** tot alle mmeralen, edelgesteenten, metalen,
cf andere delfstonen, met het recht om daarvoor te prospecteeren en te delven " ; that is, " to all minerals,
precious stones, metals, or other minerals, with the right to prospect and dig for the same." It was held
that the word " delfstoffen " must be taken in its ordinary sense as understood in SouUi Africa, and that
clay was not as ordinarily understood a " delfstof," and that therefore the plaintiff was not entitled to
dig for clay.

4. The State President shall have power, with the advice and consent of the KutAbiiahmentof
Executive Council, to take measures for the establishment of a police force, and, *i^^'®"*-
further, to take such steps in conformity with this law as he may consider necessary

600 The Qold Law.

Alterations and
addittons.

for the general welfare and the good order of the fields. The said police force shall
stand under the orders of the official charged with the criminal jurisdiction.

^Pwiident^^t*o ^' ^® State President shall also have power, with the advice and consent of the
draw up ngn- Exccutive Couucil, to make pro visious and regulations, whether general or special (for
^^ instance, for one or more fields), for the regulation of matters mentioned in this law
or connected therewith, provided they are not in conflict with this law, as, for instance,
reflations with regard to the method of dig^ging and mining, taking measures for
safety, the registration of the quantity of gold won, and such other subjects as shall
appear to him to require further regulation, under which may also be included the
registration of and tne issue of passes to coloured people. Unaer the provisions and
regulations mentioned in this article are also included provisions for penalties and
taxes. These provisions and regulations shall have the force of law from the date of
publication in the StacUscourant ; they shall be submitted at the first ensuing sessioB
of the Volksraad. Special provisions and regulations shall be of force on every pro*
claimed field immediately after proclamation in the Staatacourant

The State President shall have the power, with the advice and consent of the
Executive Council, to make any alterations in or additions to the said special provi-
sions on the propositions of the Mining Commissioner, in consultation with the Head
of the Mining Department.

Such alterations or amendments shall be of force fourteen days after publication
in the Staatacourant

*^SnS u^ ^' ^^ former laws, resolutions of the Volksraad, and regulations with r^jard to

diggings, in conflict with this law, are hereby repealed.

^ffierfwSuSth ^^^ rights obtained to claims under Article 16 of the appendix to Law No. 1 of
1883 shall remain in force imder this law.

*on 02^1*^1^5 *^- Whenever it may be found necessary in the general interest for public pur^

compensation, poscs, such as for railways, large water-courses, etc., to take away, wholly or in par^

rights once granted, the Qovernment shall have the right to do so on compensation to

be mutually agreed upon between the interested parties and the Government. In the

event of such an agreement being impossible, the amount of compensation shall be

Arbitration. fixed by Way of arbitration by one or more persons appointed by both sides, witii
reference to an umpire chosen by the arbitrators and named beforehand, who, if tbi
arbitrators cannot agree on one or more points in dispute, shall decide on such points.

7a. The Head of the Mining Department, in conjimction with the State MiniDf

Engineer, shall have the right, when such is necessary for the more adequate exploitft-

Biffhtof tunnel, tion of a mine, to grant permission to tunnel through another's claim or minend

a?o 1^*2"*^ 8 ground, but under the condition always that this tunnelling does not hinder or obstruct

ES*di«Si?* the working of such mineral ground ; that the obtainer of the right to such tunnellinf|

"^ is answerable for all damage caused thereby ; and, further, that all minerals fomia

thereby in the mining ground of others shall be returned free of cost to the possesscMn^

with this understanmng, that this article shall only be applicable for the present to

the Kaap diggings.

'*on drfaSt^of 8. When according to this law a person is sentenced to a mone^ fine, on default
^^ent of of payment this fine shall be replaced by imprisonment. The duration of this impiir
sonment shall be fixed when judgment is given as far as possible in proportion to tba
fine infiicted, with this understanding, however, that such imprisonment may sot
exceed the period of one month in case the fine infiicted amounts to £5 or lesB^ of
three months if the fine amounts to from £6 to £20, of six months if the fine amoimti

The Gold Law. 601

to from £20 to £100, and of one year if the fine amounts to more than £100. It may
be stipulated when judgment is given that such imprisonment shall be coupled with
hard labour.

CHAPTER XL

Of the Department of Mines.

9. There exists a Department of Mines in this Republic At the head of this Heviof themin.
department shall be someone with the title of Head of the Mining Department, \^£i, '**'*^
who shall at the same time have to possess the qualifications laid down in Article 4, Qu«iifi»tipMof.
of Law No. 6, of 1890, and is responsible according to the instructions framed bv the
Honourable Volksraad, in resolutions Articles 939-944, 946 and 947, dated 9th and

10th July, 1888.

The Head of the Mining Department shall be assisted by a properly qualified ^*g^JS^
expert, to be appointed by the Government after consultation with the Head of the
Mining Department, with the title of State Mining Engineer, whose duty it shall be duu« of.
in every district, to make investigations concerning, and to report fully upon, the
minerals there present, and, further, to give advice and be of assistance to the Govern-
ment, in all matters relating to mines and the development of the mineral resources of
this land, under such regulations as the Government, subject to the later confirmation
of the people's representatives, may determine.

The State Mining Engineer shall be assisted by Mining Inspectors and Boiler ^^^IJ^j^'SSiS
Inspectors on the diggings. inspectow.

10. The Government has the right, from time to time, to appoint one or more commiwioin —
commissions of trustworthy and competent persons to investigate any question relat- ^,^^ ntment
ing to mines, and to report to it thereon.

11. For each prospecting and proclaimed field, a competent person shall be ^'Jjjjer^'**"*"^
appointed, if necessary, oy the Government, as Mining Commissioner, whose salary sij^^. '
snail be fixed by the Executive Council, until later resolution thereanent l^ the First
Yolksraad. The Government shall, moreover, have the right to appoint, if necessary,

for every prospecting or proclaimed field, a special judical official, with the title of

Special Landdrost, with criminal and civil jurisdiction equal to that of the Landdrost. ^^^St - jSto-

diction oL

On the appointment of such judical official, the boimdaries within which he shall "SJJS^^"*^
have jurisdiction shall have to be accurately defined by the Government. Within
these boundaries the Landdrost of the respective district shall no lons^er have criminal ^^"^W,,**"
and civil jurisdiction. orimiiMi jaiiih

*^ diction idthin

In the exercise of jurisdiction by this Special Landdrost, the Laws and customs in Lm^Md^cn*-
use in Landdrost Courts shall be applied. The same rules shall also apply with regard ^^ ^^p''^'
to appeals to a higher court This Special Landdrost shall have, within the boundaries Appeios.
of the field over which he has jurisdiction, the same powers with regard to marriages
as are given to a Landdrost by the Marriage Ordinance. The Government shall also ^*^^
have the right to appoint, besides the Special Landdrost, other judical officials with ^Jj^^f*
the jurisdiction of a Landdrost in criminal and civil cases, and power to hold prelimi- official
nary examinations, and further to lay down instructions for such officials. With^^'*^'
r^ard to the salary of these officials, tne same regulations as above-mentioned shall
apply.

Powen with n-
to fn*r-

judidftl
official!.

602 The Qold Law.

**lri!Sei2dSL" ^^- "^^ Mining Commissioner shall be given a derk, who, if there be no Special
Landdrost, shall also be Public Prosecutor and Registrar of the Lower Court

Further clerks. 13 If required, the Government shall assign one or more clerks to the depart-

ment of the Mining Commissioner.

oisimiDspecton j^ ^j^^ Government has the power, if necessary, to appoint for every field one or
more CJaim Inspectors, and to make such regulations with regard to their duties as it
may consider necessary.

With regard to the salary of all the above-mentioned officials, the same provision
as that in the first paragraph of Article 11 applies.

ISg" Oommii. 15. The Mining Commissioner shall have the supervision of the field, or fields,
Bioner. Qy^y, which he is appointed. He shall also be clothed with authority to regulate and

direct all matters relative to the diggings in accordance with this law, and all regula-
tions which may by virtue of this law be published by the Government.

He will also have regard to the mevances of the diggers, and do all that may be
conducive to the general mterest, to the promotion of the prosperity of the diggings
and the sanitary condition of their population, he shall define the places where no
'^'icSg'^SSJ n?t ^SS^^g or prospecting may be carried on, the keeping open of roadways, under which
be carried on. are slso included roads, or paths from the claims to the oatteries and places suitable
for waterrights, and such other places concerning which the Government may give
instructions from time to time. He shall regulate the issue of stand licences, and
define the places which may or may not be built on,

^jrSSdi^S? Where, however, more than five stands would adjoin or be near each other, he
Join. must first, through the Head of the Mining Department, obtain the consent of the

Government, before issuing licences for stands in excess of that number.

wMud taxetT'^ The Government shall have the power to depute to him, or another person under

him, the collection of personal taxes within the boundaries of his fiela, under such

regulations as the Government, after consultation with the Head of the Mining

Department, shall deem necessary to make. If no Special Landdrost has been

Jurfadiction. appointed, he shall have criminal and civil jurisdiction equal to that of the Landdrost

^ot^p^^ He shall, ex-officio, be a Justice of the Peace for the whole Republic.

^toms*°lpSS*. With regard to the exercise of civil and criminal jurisdiction by the Mining
ftbie. Commissioner, the laws and customs in use in Landdrost Courts shall be applied.

Appeal ipj^^ same rules shall also apply with regard to appeal to a Higher Court

^aSd to^^. ^^ °^ Special Landdrost has been appointed the Mining Commissioner, witiiin
riAffet. the boundaries of the field over which he is appointed, shall have the same powers

with regard to marriages as are granted to a Landdrost by the Marriage Ordinance:

Article 28 of Law 18 of 1892 does not give the Mining GommiflBioner of JoluumeBbiurff the right to
refuse to issue licenceu to peg off claims on portion of a proclaimed area within hia juriraictioii on the
ground that he wished to reserve the said ground for stands in view of the probable extension of Johan-

nesburg.— J, NicoUs vs. W. J, Leyds, N.O., C.L,J,, vol, X. p. 337 ; decided 13 July, 1893, concMm Koti^
C. J., De Korte and Ameshoff, J.tf.

Article 28 of Law 18 of 1892 confers on the Mining Commissioner the power to reserve what he ooo-
siders the most suitable portions of a farm, about to be proclaimed a public gold-fields, for the purpoiei
of water-rights, and to refuse to allow any pegging on such portions.

The Court will not interfere with the discretion of the Mining Commissioner when he acts homMt
and does not exceed the powers conferred on him by law. Kempin vs. Tht Modd^rfonUin O.M. Co^»t Ud^
and the Mining Commissioner of Bohburg, C.L. J. voL xii ; p. 153 decided 2 December 1895, coram Kotifc
C.J., and Jorissen, J.

The Gold Law. 603

(a) In Kempin's case the Court read the words " en op plekkin fireschikt voor waterrechten " as
though the word ** op " did not appear, the chief justice saying ** we should place too narrow an interpre-
tation on the words of the article if we construed it as simply and solely referring to roads over places
suitable for water-rights, and not as conferring on the Mining Commissioner the power to decide what
portions of the farm are most suitable for water-rights, and then to define these water-rights accordingly.''
The Court also pointed out the distinction between Kempin'a case and NicoUi^a case. T%e word '* op is
left out in Article 15 of this law.

With regard to Article 28 see further the remarks of Kotz^, C.J., on pages 81 and 82 of the C.L.J.
i«)L X. in the case of Tht WitiocUersrand 0,M, Coy, Ltd, vs. R, Young, decided 12 January, 1893, coram
Kotas^, C.J. and De Korte and Morice, J.J. It was there held that, where the plaintififo with the know-
ledge and tacit consent of the Qovemment had for four years occupied a portion of ground proclaimed a
public eold-diggings, outside but in the vicinity of their *'mijnpacht," and had erected buildings thereon,
and laid a tramway for the better working of their mine and oattery, such portion of eround was not
open ground, and no third party was entitled to peg oflF the portion of ground so occupiM, under pros-
pectors' licences, or otherwise interfere with plaintiffs' occupation.

Article 15 of Law 19 of 1895 corresponds with Article 15 of this Law.

Cf, also Otnsberg vs. The Oav/SffndiecUe and the Mining ComnUdnoner of BohUmrg (C.L. J. August 1896)
givoi in Appendix C.

16. The grounds reserved, according to Article 54, for houses, buildings, water- umiti of Miniiv
farrows, gardens or lands, as also those under Article 28 for "mijnpachten," and further ert^TJriSS^
all pieces of ground which are wholly enclosed by a public digging or prospecting field, ****°-
shall be under the jurisdiction of the Mining Commissioner, or, if there be such, of

the special judicial officials of that digging or prospecting field. The Qovemment
shall also have the right, by proclamation, to bring under, the jurisdiction of the
officials on the public digging, farms or portions of groimd adjoining such public
diggings or situated in the neighbourhood thereof.

17. All admitted advocates, attorneys, notaries, agents, conveyancers, and sworn Legal pnotitton.
translators, who, according to the law of the land, are entitled to practise in the civil •"*•
courts of the land and to cany out their profession, shall be allowed to practise on the

fielda The tariff of licences required to enable the carrying out of one of these pro-
fessions on the fields shall be according to established ordinances. No unadmitted and Licences of.
unlicensed person shall have the right to conduct cases in any court for others or to
carry on the business falling under the professions of the aforementioned practitioners.
It shall however be free to any person, should he so desire, to conduct his case in ^"^^^Jin"*^
person before a coui*t on the fields or to transfer in person any stand, claim or any wn.
portion thereof, as otherwise being his lawful property. He shall, however, not have ^"** *** ****
the right to draw up bills of costs of the defence of his case or to claim costs for any
deed of cession, transfer or otherwise, except for witnesses' expenses, court fees,
summons or stamp dues.

18. From the decision of the Mining Commissioner or of the Special Landdrost, Appeal from
if there be such, there shall l)e an appeal to the Circuit Court, the judge sitting SiIioner^''or
in Camera at Pretoria, or the High Court sp«^i l^hi-

19. The Mining Commissioners shall be obliged to keep proper books of all iujgi«teri to be
revenue and expenditure. He shall also keep proper registers of all licences and ^®p*^^*°*"*
rights granted by him to persons or companies and such other registers as the head of **°* ^°*"
the Mining Department may from time to time prescribe.

Inspection of these registers shall be granted to the public, but it must be inepection of
previously stated by the parties interested whereof information is required. For b«k*»^»«
simple inspection the sum of la 6d. shall be paid for each inspection. For written
information the sum of 5& in each instance must be paid, consisting of stamps, which
must be attached to the document and cancelled.

594 The Liquor Law.

57. This Act comes into operation on the 1st of January, 1897.

The followii^ Articles retain force of law in accordance with a resolution of the
Second Yolksraad :— Article 875, dated 22nd July, 1896 ; Artkde 4y letter d ;
Article 7, letter d ; and Article 34a.

(Signed) S. J. P. KEUGER,

8iaU Presideat.

Dr. W. J- LEYDS,

State Stcvetary.

Oovemment Office,

Pretoria, 17th August, 1896.

The Liquor Law.

595

INDEX.

Pasb.

Application for Lioenoe
Accommodation to be provided ...
Brewing and Distilling
Back and Side Door ...
Breach of Peace ...
Coloured Persons
Drunken Persons, Arrest of...
Fines to Informants •••
Growers and Producers
Hotel and Boarding-House
Immoral use of Premises
Jurisdiction... ...

licences, where granted

liicences, various kinds

Licence Fees

Xiicensing Commission...

Licences Refused...

Licences in proportion to population

Licence Holder Absent

Late Permits

Licences Endorsed

jbloney Due for Liquor ...

No Coloured Person Employed

Natives Drunk

Objections to Lioenoe

Prohibited Areas

Persons under 16...

Persons Habitually Intozioated ...

Policemen and Turnkeys

lUght of Entry

lUght to Inspect Lioenoe ...

Beeponsibility of Dealer

8elling Without Licence

Special Licences

Selling contrary to Licence ...

Surety Bond

Signboard

Sundays and Holidays...

Search Warrants...

Suspected Persons

Summons, how served

Sherififo

Transfer of Lioenoe

Unlicensed Persons

...

..«

> .

585

...

500

...

t •

583

...

588

...

> .

» .

590

...

588,589

...

t .1

>•

591

...

593

...

..)

> .

»•

582

...

a*.

590

...

..<

> .<

1 .

... 592

...

593

...

> .

582

...

583

*. .

.. 1

583

...

583

...

t .

585

...

.*•

...

586

...

1 •

I *

588

...

589

...

» •

592

...

592

• .

1 .

» .

588

...

593

...

.< 1

585

...

585

...

• •

1 •

* •

589

...•

...

589

...

••<

1 •<

593

...

590

...

< . •

. 1

592

...

593

..*

..1

> • ■

582

...

587

. . .

..<

587

...

587

. • .

.. •

.«

» .

588

...

589

• . .

..<

1 .1

591

...

591

. •.

...

592

...

593

...

..<

1 . 1

587,588

...

• • .

...

593

XVI.

The Gold Law.

(S. H. Barber's Edition.)

LAW No. 21 of 1896.

DIFFERENT GOLD LAWS.

»>

Law 2 of 1872.

7 of 1874
6 of 1875.

8 of 1885.

Modification of Law 8 of 1885 (29th July, 1886).
Appendix to Law 8 of 1885 (7th March. 1887).
Law 10 of 1887.

9 of 1888.

8 of 1889.

8 of 1890.
10 of 1891.

18 of 1892.
14 of 1894.

19 of 1895.
21 of 1896.

»f

The Gold Law.

597

LIST OF CASES.

Aktioui op Lav.

1. Berea Syndicate vs. Leyds, N.O. ... ... .., .^ .^ 62

2. Berriman Syndicate w. Simpson ... ... ... ... ... 81

3. Bezuidenhout m Worcester G.M. Co. ... ... .., .., ... 136

4. Blomfield vs. The Mining Commissioner of Johannesburg and F. J. Bezuidenhout,

j**^* ••• ... ■•* ... ... ... 1

5.. Boyne and Nightingale vs. The Spitzkop G.M. Co. ...

6. Cathcart vs. The Main Reef G.M. Co.

7. Charlton vs. The State

8. Chumleigh Syndicate vs. The State and The Rand Exploring Syndicate

9. Chums Syndicate vs. The Rand Exploring Syndicate

10. Cohen vs. The Johannesburg Pioneer G.M. Co.

11. Cohen, Goldschmidt k Co. vs. Stanley and Tate

12. Collins vs. Hugo and The Standard Bank

13. Curtis r«. The State

14. Curtis, N.O. vs. The Mining Commissioner of Johannesburg and the Johannesburg

Township Company

16. Dell w. The State

16. Donovan M. The Turflfontein Estate

17. Doyle and others vs. Leyds, N.O., and The Rand Exploring Syndicate (trial case)

18. Doyle and others vs. Leyds, N.O., and The Rand Exploring Syndicate (exception)

19. Du Preez and others vs. Meyer and Van der Walt.

20. Edwards 170. The Britannia Company

21. Eloffvs, Leyds, N.O.

22. Frische vs. The Modderfontein G.M. Co. and The Mining Conmiissioner of Boksburg

23. Gauf vs. The Modderfontein G.M. Co. and The Mining Conmiissioner of Boksburg 26, 46, 48 & 64

24. Gilbaud k Co. vs. Walker and others

25. Ginsberg vs. The Gauf Syndicate and The Mining Commissioner of Boksburg ...

26. Henry Nourse G.M. Co. vs. Eland

27. Humphreys vs. The Claim Inspector of Heidelberg and Symons and Lys

28. Jewel G.M. Co. vs. Oosthuizen

29. Jooste t7«. Carlis and Creewel

30. Joseph Klimke vs. Ludwig Pogge, Frans Zboril and Herman Seelig

31. Kempin vs. The Modderfontein G.M. Ca and The Mining Commissioner of Boksburg
82. Kraft vs. Bok, N.O., and The Witwatersrand G.M. Co.

33. Langlaagte Estate G.M. Ca vs. The Crown Reef G.M. Ca

34. Lindum G.M. Ca vs. The Sexagon Syndicate

35. Madeline Reef Syndicate v«. Coetzee and others ... ...

36. Mar6 w. The Mount Mar^ G.M. Ca

37. Moolman and Coetzee vs. Schaffe and Drury ...

38. Nabob G.M. Co. tfs. Phoenix G.M. Co. ...

39. Nicolls vs, Leyds, N.O. ...

62 A; 149
34 A; 62
• 28
142.

34 A; 62

107

144

31 A; 51

26, 46 & 48

34 &62

15, 83 & 117

149

(Appendix C)

15, 83 k 117

31 A; 51

31, 60 A; 62

127

65, 70 & 149

55, 125 & 126

28 A; 30

15, 83 k 117

598 The Qold Law.

Akticlb or Lav.

40. Xigel Co. V8, Croft and The Beatrice Syndicate ... ... .. ... 66

41. Nonpareil Syndicate va, Leyds, X.O., and The Rand Exploring Syndicate ... 74

42. Paarl Pretoria G.M. Co. vs. Donovan and Wolfi^ N.O. ... ... ... 63

43. Pearce vs, Olivier and others ... ... ... *** ... 51

44. Pioneer G.M. Co. and The Paarl Ophir G.M. Co. w, Gutmon and Graham ... 22

45. Rooth, q.q. vs. The State ... ... ... ... ... 21

46. Rothwell vs. The New Rietfontein Estate Gold Mines (Ltd.) and Leyds, N.O. ... 28

47. S. Syndicate va, John Ballot G.M. Co. ... ... ... ... 63

48. Salisbury G.M. Co.- ««. Klipriviersberg Estate and G.M. Co. ... ... ... 127

49. Schuler tv. Sacke and Saenger ... ... ... ... ... (Appendix C)

50. Schweizers Claimholders Rights Syndicate va. Rand Exploring Syndicate ... 86

51. Schweizers CHaimholders Rights Syndicate va. Rand Exploring Syndicate(Champerty) (AppendixC)

52. Sheba G.M. Co. va, Vautin, Millboume and Steers...

53. Spitzkop G.M. Co. va, Stanley and Tate

54. Stanley v«. Goldschmidt & Co.

55. State Attorney va, Lionel Phillips and others ..

56. State va, James Bacon

57. Steyn va, Johnson and The Diggers' Committee of Witwatersrand ...

58. Steyn va, Bezuidenhout

59. Stow and others va, Chester and Gibb

60. Sylvester va. The State

61. Sylvester va. Jacobs

62. Taylor and Claridge va. Van Jaarsveld and Nellmapius

63. Tinling va, Lang

64. Underwood va, Bamato Bros, and The Mining Commissioner of Boksburg

65. United Langlaagte G.M. Co. vs. The State and The Langlaage Royal and The Rand

\7« JjCL* V^w* ••• ••• ••• ••• ••• ••• •••

66. Van Diggelen va. Leyds, N.O.

67. Van Ryn G.M. Co. va. New Chimes G.M. Co....

68. Williams va. The Geldenhuis Estate and G.M. Co, and Leyds, N.O. ...- ... 62

69. Witwatersrand G.M. Co. va. Young ... ... ... ... 15, 54, 83 & 117

60 A; 127

34 A; 62

144

146

26 &46

142

31 &51

128

The Qold Law. 699

LAW NO. 21 OF 1896,

On the Diqoino fc« and Deaung in Precious Metals and Precious Stones

WITHIN THE South African Republic.

As a/mended and approved of by tlie Second Volkaraad Resolution^ Article 1S58,
August S4th, 1896^ and accepted for notice by the Honourable the First Volksraad
under Article 1-55^ September 14th, 1896.

CHAPTER I.
General Provisions.

1. The right of mining for and disposal of all precious stones and precious metals Theriffhtof dit-
belongs to the State. SSs ^oSSi

2. This law is applicable to diamonds, mbies, gold, and such other precious stones the*sta£^^
and precious metals as the State President, with the advice and consent of the ™bie*%o^.
Executive Council, with reference to this article of this law, shall make known. mondt. ^

3. The words " public dig^gs " shall signify a proclaimed area thrown open by ^5f°igg5'**P",!*'
lawful authority for prospecting, digging, and mining. The word "claim ' shall °°wn«^
signify either that portion of the fields on which a person or persons or companies

bave obtained a legal right to dig or to prospect, or the right to dig or prospect on ciaim.
fiuch a piece of ground. " Private ground " shall signify the ground belonging to private ground,
private persons or companies, as shown by the title deed or deed of transfer.

" Government ground " shall signify all ground belonging to the State. Government

The words " coloured person " shall signify every African, Asiatic native, or coiouwdpenon.
coloured American person, doolie or Chinese.

" Un wrought gold " or " unwrought precious metal " shall signify gold or precious unwroughtgroid
metal in whatever form, which, although smelted, is not manufactured or made up
into any article fit for trade. It includes also raw gold or other precious metal,
amalgam, and slimes.

Further, all words shall be understood in the sense in which they are ordinarily words tobetm-

n agJX dentood in the

*****'^ eenae in wliich

In the cose of Donovan vs. The TurffonUin EstaU (decided Ifith September, 1805, Off. Rep., Vol. II., ^^S^*^"*^

part 3, p. 298), the question was whether the plaintiff was entitled to dig for clay for the purpose of ^ ^ "
making bricks, etc., on a certain piece of «x>und leased to him by a^p:'eement of 12th December, 1891.
Article 7 of the agreement of lease gave the lessee the right " tot aUe mineralen, edelgesteenten, metalen,
of andere delfsto&n, met het recht om daarvoor te prospecteeren en te delven " ; that is, " to aU minerals,
precious stones, metals, or other minerals, with the right to prospect and dig for £he same." It was held
that the word ** delfstoffen " must be taken in its ordinary sense as understood in South Africa, and that
clay was not as ordinarily understood a " delfstof," and that therefore the plaintiff was not entitled to
dig for clay.

4. The State President shall have power, with the advice and consent of the }<>tAbiidunentof
Executive Council, to take measures for the establishment of a police force, and, ^ ^*^ '**"**
further, to take such steps in conformity with this law as he may consider necessary

600 The Qold Law.

for the general welfare and the good order of the fields. The said police force shall
stand under the orders of the official charged with the criminal jurisoiction.

^ftSident^^^to ^' ^® State President shall also have power, with the advice and consent of the
draw up reyu- Exccutive Council, to make provisions and regulations, whether general or special (for
**"*■ instance, for one or more fields), for the regulation of matters mentioned in this law

or connected therewith, provided they are not in conflict with this law, as, for instance,
reflations with regard to the method of digging and mining, taking measures for
safety, the registration of the quantity of gold won, and such other subjects as shall
appear to him to require further regulation, under which may also be included the
registration of and the issue of passes to coloured people. Under the provisions and
regulations mentioned in this article are also included provisions for penalties and
taxes. These provisions and regulations shall have the force of law from the date of
publication in the Staatacourant ; they shall be submitted at the first ensuing sessioa
of the Volksraad. Special provisions and regulations shall be of force on every pro-
claimed field immediately after proclamation in the Staatacoiirant

^iSditioM *"** ^® State President shall have the power, with the advice and consent of the

Executive Coimcil, to make any alterations in or additions to the said special provi*
sions on the propositions of the Mining Commissioner, in consultation with the Head
of the Mining Department.

Such alterations or amendments shall be of force fourteen days after publication
in the Staatacourant

^^Sng'ia^" 6- ^^ former laws, resolutions of the Volksraad, and regulations with regard to

diggings, in conflict with this law, are hereby repealed.

^ffiSrfef2d!iSS ^^^ rights obtained to claims under Article 16 of the appendix to Law No. 1 of
1883 shall remain in force under this law.

*on pS^lJnt 0° ^' Whenever it may be foimd necessary in the general interest for public pur-

compensation, poses, such as for railways, large water-courses, etc., to take away, wholly or in part^
rights once granted, the Government shall have the right to do so on compensation to
be mutually agreed upon between the interested parties and the Qovemment. In the
event of such an agreement being impossible, the amount of compensation shall be

Arbitntion. fixed by way of arbitration by one or more persons appointed by both sides, with
reference to an umpire chosen by the arbitrators and named beforehand, who, if tht
arbitrators cannot agree on one or more points in dispute, shall decide on such pointa

7a. The Head of the Mining Department, in conjimction with the State Minjng

Engineer, shall have the right, when such is necessary for the more adequate exploita-

KLrhtof tunnel, tion of a mine, to grant permission to timnel through another's claim or mineral

i?o t^T? ■ ground, but under the condition always that this tunnelling does not hinder or obstroet

Ewwdiiffin*** ^^® Working of such mineral ground ; that the obtainer of the right to such tunnelling

"^ is answerable for all damage caused thereby ; and, further, that all minerals fooi^

thereby in the mining groimd of others shall be returned free of cost to the possessora,

with this understanding, that this article shall only be applicable for the present to

the Kaap digginga

'"on d5»SIt*of 8. When according to this law a person is sentenced to a monejr fine, on default
j^ent of of payment this fine shall be replaced by imprisonment The duration of this impri-
sonment shall be fixed when judgment is given as far as possible in proportion to tht
fine inflicted, with this understanding, however, that such imprisonment may vA
exceed the period of one month in case the fine inflicted amounts to £5 or lesB^ d
three months if the fine amounts to from £5 to £20, of six months if the fine amoimii

The Qold Law. 60i

to from £20 to £100, and of one year if the fine amounts to more than £100. It may

Qent is given that such imprisonment shall be coupled with

be stipulated when judgment
hard labour.

CHAPTER IL

Of the Department of Mines.

9. There exists a Department of Mines in this Republic At the head of this Head of the min-
department shall be someone with the title of Head of the Mining Department, |n°St. ***'*^
who shall at the same time have to possess the qualifications laid down in Article 4, Qu»iiiic«tioMo!.
of Law No. 6, of 1890, and is responsible according to the instructions framed bv the
Honourable Volksraad, m resolutions Articles 939-944, 946 and 947, dated 9th and

10th July, 1888.

The Head of the Mining Department shall be assisted by a properly qualified s*g^gjJJ2^°«
expert, to be appointed by the Government after consultation with the Head of the
Mining Department, with the title of State Mining Engineer, whose duty it shall be i>uti« of.
in every district, to make investigations concerning, and to report fully upon, the
minerals there present, and, further, to give advice and be of assistance to the Govern-
ment, in all matters relating to mines and the development of the mineral resources of
this land, under such regulations as the Government, subject to the later confirmation
of the people's representatives, may determine.

The State Mining Engineer shall be assisted by Minmg Inspectors and Boiler ^^^^^^gj
Inspectors on the diggings. iinpocton.

10. The Government has the right, from time to time, to appoint one or more commiOTions —
commissions of trustworthy and competent persons to investigate any question relat- 5^^** °*°**°
ing to mines, and to report to it thereon.

11. For each prospecting and proclaimed field, a competent person shall be Minj^oommU.
appointed, if necessary, by the Government, as Mining Commissioner, whose salary saiJ^
shall be fixed by the Executive Coimcil, until later resolution thereanent Inr the First
Volksraad. The Government shall, moreover, have the right to appoint, if necessary,

for every prospecting or proclaimed field, a special judical official, with the title of

Special Landdrost, with criminal and civil jurisdiction equal to that of the Landdrost. ®^ _^

diotion oi

On the appointment of such judical official, the boundaries within which he shall "Sj^^^"*^
have jurisdiction shall have to be accurately defined by the Government Within
these boundaries the Landdrost of the respective district shall no longer have criminal ^^™**^,,**;i

<•..,..«. ^. * ® no clTil or

and civil jurisdiction. crimiiMa juris-

** diction within

In the exercise of jurisdiction by this Special Landdrost, the Laws and customs in Lm^a^^
use in Landdrost Courts shall be applied. The same rules shall also apply with regard JJJ^ *^^'
to appeals to a higher court. This Special Landdrost shall have, within the boxmdaries App^is.
of the field over which he has jurisdiction, the same powers with regard to marriages
as are given to a Landdrost by the Marriage Ordinance. The Government shall iSso ^^JJ S^mU"
have the right to appoint, besides the Special Landdrost, other judical officials with (Jj^f^ju^ui
the jurisdiction of a Landdrost in criminal and civil cases, and power to hold prelimi- otBdau.
nary examinations, and further to lay down instructions for such officials. With^***^'
r^^ard to the salary of these officials, the same regulations as above-mentioned shall
apply.

602 The Qold Law.

**!riiMi?Jte?k!' ^2- ^® Mining Commissioner shall be given a clerk, who, if there be no Special
Landdroet, shall also be Public Prosecutor and Registrar of the Lower Court.

Further clerks. 13 If required, the Government shall assign one or more clerks to the depart-

ment of the Mining Commissioner.

Claim iMpectom j^ ^^ Government has the power, if necessary, to appoint for every field one or

more Claim Inspectors, and to make such regulations with regard to their duties as it
may consider necessary.

With regard to the salary of all the above-mentioned officials, the same proviedon
as that in the first paragraph of Article 11 applies.

ISk" Oommk" 15. The Mining Commissioner shall have the supervision of the field, or fields,

■loner. q^^^ which he is appointed. He shall also be clothed with authority to regulate and

direct all matters relative to the diggings in accordance with this law, and all regula-
tions which may by virtue of this law be published by the Government

He will also have regard to the mevances of the diggers, and do all that may be
conducive to the general interest, to the promotion of the prosperity of the dig^ngs
and the sanitary condition of their population, he shall define the places where no
'^Ki^g'^SSJ nf t ^SS^^g ^^ prospecting may be carried on, the keeping open of roadways, under which
be carried on. are also included roads, or paths from the claims to the oatteries and places suitable
for waterrights, and such other places concerning which the Government may give
instructions from time to time. He shall regulate the issue of stand licences, and
define the places which may or may not be built on,

^JrSSL*^ Where, however, more than five stands would adjoin or be near each other, he
Join. must first, through the Head of the Mining Department, obtain the consent of the

Government, before issuing licences for stands in excess of that number.

•onai tMxJT^ The Government shall have the power to depute to him, or another person under

him, the collection of personal taxes within the boundaries of his field, under such

regulations as the Gk)vernment, after consultation with the Head of the Mining

Department, shall deem necessary to make. If no Special Landdrost has been

Juriadiction. appointed, he shall have criminal and civil jurisdiction equal to that of the Landdrost

^ot^p^^ He shall, ex-officio, be a Justice of the Peace for the whole Republic.

^twn8*°ap^c. With regard to the exercise of civil and criminal jurisdiction by the Mining
able. Commissioner, the laws and customs in use in Landdrost Courts shall be applied.

Appeal rpjj^ samc rulcs shall also apply with regard to appeal to a Higher Court.

''Sm to^mU^ ^^ ^^ Special Landdrost has been appointed the Mining Commissioner, witiiin
riaflret. ' the bouudancs of the field over which he is appointed, shall have the same poweis
with regard to marriages as are granted to a Landdrost by the Marriage Ordinance:

Article 28 of Law 18 of 1892 does not give the Mining GommidBioner of JoluuuieBbiuv the right to
refuse to issue licences to peg oJBf claims on portion of a proclaimed area within his juriraictioa on thB
ground that he wished to reserve the said ground for stands in view of the probable extension of Johsa-
nesburg. — J, NicolU vs. W. J, Leyds, N,0., C.L,J,, vol, X. p, 337 ; decided 13 July, 1893, coram Katd,
C. J., De Korte and Ameshoff, J.tf.

Article 28 of Law 18 of 1892 confers on the Mining Commissioner the power to reserve what he ooi*
siders the most suitable portions of a farm, about to be proclaimed a public gold-fields, for the puqwwi
of water-rights, and to refuse to allow any pegging on such portions.

The Court will not interfere with the discretion of the Mining Commissioner when he acta honaM
and does not exceed the powers conferred on him by law. Kempin vs. Hie ModdfrfonUin O.M, Co^,, uit
and the Mining Commissioner of Bohhurg. C.L. J. voL xii ; p. 153 decided 2 December 1895, ooroM KolA
C.J., and Jorissen, J.

The Gold Law. eos

(a) In Kempin's case the Court read the words " en op plekkin cpeschikt voor waterrechten ** as
though the word «* op " did not appear, the chief justice saying " we shoiud pUce too narrow an interpre-
tation on the words of the article if we construed it as simply and solely r^erring to roads over places
suitable for water-rights, and not as conferring on the Mining Commissioner the power to decide what
portions of the farm are most suitable for water-rights, and then to define these water-rights accordingly."
^e Court also pointed out the distinction between Kempin^a case and Nic6tU*8 case. T%e word *' op "is
left out in Article 15 of this law.

With regard to Article 28 see further the remarks of Kotz^, C.J., on pages 81 and 82 of the C.L.J.
w>L X. in the case of The Witioaterarand 0,M, Coy, Ltd, vs. R. Young^ decided 12 January, 1893, coram
Kotz^, C.J. and De Korte and Morice, J.J. It was there held that, where the plaintififo with the know-
ledge and tacit consent of the Qovemment had for four years occupied a portion of ground proclaimed a
paolic eold-diggings, outside but in the vicinity of their ** mijnpacht," and had erected buildings thereon,
and laid a tramway for the better working of their mine and oattery, such portion of eround was not
open ground, and no third party was entitled to pe^ off the portion of ground so occupiM, under pros-
pectors* licences, or otherwise interfere with plaintiflfs* occupation.

Article 15 of Law 19 of 1895 corresponds with Article 15 of this Law.

Cf, also Otn^rgvB. The QaufSyndieaU and the Mining Commiaaioner o/Bokaburg (C.L.J. August 1896)
givoi in Appendix U.

16. The grounds reserved, according to Article 54, for houses, buildings, water- umiti of mhIiv
furrows, gardens or lands, as also those under Article 28 for "mijnpachten," and furUier ?rt"Tttri«S5"
all pieces of ground which are wholly enclosed by a public digging or prospecting field, **^-
shall be under the jurisdiction of the Mining Commissioner, or, if there be such, of

the special judicial officials of that digging or prospecting field. The Qovemment
shall also have the right, by proclamation, to bring under, the jurisdiction of the
officials on the public diggings, farms or portions of groxmd adjoining such public
diggings or situated in the neighbourhood thereof.

17. All admitted advocates, attorneys, notaries, agents, conveyancers, and sworn Legal prwtition.
taranslators, who, according to the law of the land, are entitled to practise in the civil •"*•
courts of the land and to cany out their profession, shall be allowed to practise on the

fielda The tariff of licences required to enable the carrying out of one of these pro-
fessions on the fields shall be according to established ordinances. No unadmitted and Licences of.
unlicensed person shall have the right to conduct cases in any court for others or to
carry on the business falling under the professions of the aforementioned practitioners.
It shall however be free to any person, should he so desire, to conduct his case in Anybody^ may
person before a coui*t on the fields or to transfer in person any stand, claim or any •on!**' ° ^'"
portion thereof, as otherwise being his lawful property. He shall, however, not have ^^ ^ ****
the right to draw up bills of costs of the defence of his case or to claim costs for any
deed of cession, transfer or otherwise, except for witnesses' expenses, court fees,
summons or stamp duea

18. From the decision of the Mining Commissioner or of the Special Landdrost, Appeal from
if there be such, there shall l)e an appeal to the Circuit Court, the judge sitting SiSrioner^or
in Camera at Pretoria, or the Hieh Court specui Land.

19. The Mining Commissioners shall be obliged to keep proper books of all Regi«tew to be
revenue and expenditure. He shall also keep proper registers of all licences and ^^p^ byMinin^
rights granted by him to persons or companies and such otner registers as the head of °°*"* ^°*"
the Mining Department may from time to time prescribe.

Inspection of these registers shall be granted to the public, but it must be inspection of
previously stated by the parties interested whereof information is required. For b«k*»^»«
simple inspection the sum of la 6d. shall be paid for each inspection. For written
information the sum of 5& in each instance must be paid, consisting of stamps, which
must be attached to the document and cancelled.

604

The Qold Law.

Monthly state-
mentitoTreas-
urer-Oeneral.

Responalble
clerks.

Aarigntnent of
stMkUito.

Beeponsibility of
Milling Com-
mlMioiicr.

Powers of res-
ponsible clerks

Issae of licences.

Registers to be
kept by res-
ponsible clerks

Monthly state-
ments.

May be invested
with powers of
Justice of the
Peace.

Datios of Mining
Commissioner
and respons-
ible derk.

Ucenoes to be
taken out.

Proper records to
be kept of all

Care of Govern-
ment buildings

Import duties —
coUuction of .

•Stamp and trans-
fer duties —
paj-ment of.

Fees — myment
of to dtate.

Fines and court
fees— payment
of.

20. The Mining Commissioners shall farther be bound to send their statements
monthly to the Treasurer-General, and to pay in monthly into his office the public
moneys in their possession.

21. The Qovemment, after consultation with the head of the Mining Department,
shall, on such fields as it may deem desirable and necessary, appoint one or more of the
clerks of the Mining Department as responsible clerk or derka

The Government, after consultation with the head of the Mining Department^
shall have the right to assign to such responsible clerks, separate stands on different
portions of the proclaimed field. The responsibility of the Mining Commissioner is not
removed by the responsibility of such a clerk serving in the head office of the Mining
Commissioner himself.

A responsible clerk may issue all licences falling xmder his division ; he may also
receive transfer dues (a) auction dues, fines, market fees, rents and other spedal
revenue ; he may also do such other work as may be given to him from time to time
by the Mining (jommissioner.

Licences signed and issued by such a clerk shall confer the same rights as if they
had been signed and issued by the Mining Commissioner himself.

Responsible clerks having their own division, shall be obliged to keep proper
registers of all licences issued by them, and shall as soon as possible deposit with the
Mming Commissioner all moneys received by them, and within four days after the end
of each month send in their reports and monthly statements to the Mining
Commissioner.

The Government shall have the power to invest such a responsible clerk with the
powers and jurisdiction of a Resident Justice of the Peace within such limits as the
Government shall determine.

(a) Transfer dues on transfer of claims paid through mistake of law cannot be recovered. Bocih q.q,
VH. Tht State, decided 2 October, 1888, coram Kotz^, C. J., and Esselen and De Korte, J. J. C.L.J.,
vol. y., p. 304. Under Law 8, of 1885, there was no transfer dutv payable on the transfer of claims. It
was introduced by Law 9, of 1888, § 33. In the case of DeU va. The J^ate, decided prior to the passing of
Law 9, of 1888, it was held that the transfer of claims was not subject to the payment of transfer dues.

22. Strict attention shall be paid to the following by the Mining Commissioner
and responsible clerks : —

(a) That no one shall carry on any calling or trade, or shall dig or prospect with-

out a proper licence.

(b) That their clerk or clerks keep proper records and minutes of all cases dealt

with or decided in their Court, and that their subaltern and subordinate
officials fulfil their duties and render accoimt of everything deputed to them
or of monies entrusted to them.

kept in good order.

(d) That all import duties according to tariff on goods imported from abroad, and
on which no duty has yet been paid, are carefully collected.

(e) That the stamp duties and transfer duties due to the Government on all trans-

fers of claims (a) and stands are properly paid.
(/) That all fees or other monies payable to the State in pursuance of this law or

later laws and regulations are promptly paid and that all official docomeoti

are subject to stamp duty.
(g) All tines and Court fees received at the office of the special Landdrosts, mvt

be paid monthly to the Mining Commissioners, together with a speoifieJ

statement of the persons fined.

The Qold Law. 605

(a) The Paarl Ophir G.M. Coy. ceded three claims to the Pioneer G.M. Coy. The latter company
•employed one Gutman as agent to receive transfer of the claims. The transfer was in Gatman*s name. .
He then fraudulently transferred to Graham. It was held that the transfer in the iSrst instance was to
•Gutman cw amrU, ana that therefore neither he nor Graham had any title, but that the claims belonged to
the Pioneer G.M. Coy.

The Pioneer O.M, Ccy.y Limited and the Paarl Ophir O.M, Coy,^ Limited vs. Qutman and Oraham,

23. The Mining Commissioner shall take the same oath as the Landdrost. All ^'b**^in^*'*
officials, on whatever diggings appointed, shall be duly sworn on taking office. commiarionef

24. The head of the Mining Department and the officials of his department, as also officials prohi.
Special Landdrosts and Assistant Landdrosts, Judicial Commissioners and the officials h^o i a i'n^
of their department on a prospecting and proclaimed field, are not permitted, directly claims, to.
or indirectly, to hold claims, to carry on any business, to conduct any kind of agency
whatever, or to have any share in a mining company, or in any syndicate or partner-
ship relating to mining mattera Landdrosts, head officials, ana their subordinates are

also prohibited from being connected with a mining company as directors, advisers,
controllers or as official& Should it be discovered that the above-mentioned officials
sxe guiltv of contravening the provisions contained in this Article they may be, accord-
ing to the nature of the case, suspended from office by the Government for a certain
time or dismissed.

Where plaintiff had sued defendants on a contract relating to certain gold claims, and an exception
taken by them to the summons on the ground that plaintiff being State Minine Engineer, was disqualified
by Article 29 of Law 18 of 1892 from smng on such a contract, was upheld by the C^nrt, and plaintiff then
petitioned the Volksraad, which, while accepting the decision of the Coiirt, removed the disaoility for the
purposes of this particular action, by passing a resolution granting him dispensation from the provisions of
the said Article 29 : — Held, that it was competent for the VolkOTaad to pass such a resolution, and that,
provided it was in order, the Court was bound to give effect to it ; Held, further, that the merits of the
case had not been touched upon in the first exception , and plaintiff could therefore institute the action
afresh now that the disability had been removed.

Joseph Klimke vs. Ludwig Pogge, Frans Zboril and Herman Seelig ; C.L,J, VoL XL^p, 65, decided
13 Nov., 1893, coram Kotz6, C. J., and Jorissen and Morice, J.J.

Article 29 of Law 18 of 1892 corresponds with Article 24 of this Law.

The resolution of the Volksraad referred to is First Volksraad Besluit of the 8th of August, 1893,
Article 1,029.

CHAPTER IIL
Concerning Searching, Digging, and Mining.

Section 1. Prospecting by, or with permiaaion of, the owner.

25. It shall be free to every landowner (after having ^ven notice of his inten- Right of owner
tion to the Landdrost of his district or to the nearest mining Commissioner or ^p*J|^* ^
Besponsible Clerk) to search for precious stones and precious metals within the perty^Mt£at
boundaries of his property without a licence, and to employ for that purpose, besides "°*°®^
coloured persons, not more than four white persons drawing wages, and to exploit
mines on nis ground or cause the same to be exploited under the conditions herein-
sfter described. No one, except the State President, with the advice and consent of oniy the state
the Executive Council, shall be allowed to throw open his groxmd to the public as ^tSid^Si^of
public diggings. The Government shall always have the right to cause an investiga- ooundL ' am
tion to be made of the prospecting. throw open

property.

On the discovery of precious metals and precious stones on private ground, the Notice of dbcov-
owner shall be obliged to give notice thereof, within seven days after the discovery, StSi^'SSin
to the nearest Mining Commissioner, Besponsible Clerk, or Landdrost, as also of the ''^^^
particulars thereof, under penalty of a fine not exceeding £5 on neglecting to do so.

606 The Qold Law.

writtenpermis. 26. Anyone having written permission from the owner of a private farm or piece

nertoprospect of gTound to search on his property shall be able to obtain the necessary promecting^
under Ucence. jj^j^jj^g^ q^ payment of the licence money, from the Landdrost of the district where he
desires to search, or from such other officials as shall be appointed by the Govern-
ment, for the period mentioned in such written permission, not exceedinec a period of
sixmontha

For 6 months.

^or**anothCT When, however,the said permission is granted for a longer term than six months^
period of 6 the Lauddrost or such other official as shall be appointed by the Grovemment shall,
°*°" "* after the expiration of the first six months, have the right, after proper investigation,
to extend the term for which the licence was granted in accordance with the permis-
sion, as long as such extension does not exceed a further period of six montha

Where the Modderfontein G. M. Coy. granted " verj^nnieen " to a certain I>9ttalbach to peg off
1,110 claims on the farm Modderfontein, on the understancQng that the said claimB were to belong to the
Company, and not to Dettelbach, and the Mining Commissioner of Boksburg, on the stren^h of the
" vergunningen " granted to Dettelbach, issued hcences for 1,110 claims to the representative of the
Company before issuing licences to the plaintiff Gauf , notwithstanding that the bitter had been the first
to apply for 110 licences on the morning of proclamation, and the Mining Commdssioner subsequently
refused to renew the licences for the 110 claims claimed by Gauf on the ground that these 110 claims were
included in the 1,110 claims pegged off by the Company, Held (De Korte, J., diss.), m an action by the
plaintiff Gauf to have the 110 claims declared his property, that he was entitled to succeed.

The owner of a farm is entitled to certain defined rights as owner under the Geld Law, and he cannot
grant " vergunningen " to a mere "dummy** to peg off claims on the understanding that such claims
snail belong to him and not to the '* dummy," as tms is a way of getting possession, oy indirect means,
of a greater number of claims than he would be entitled to directly as owner, and is therefore in/roauUm
of the Gold Law. Oaufys, The Modderfontein G, At, Cof/, Ltd, and the Mining Cammiasianer ofBohburg.
C,L,J, vol. xi%. p, 217 ; decided 12th January, 1895, coram Kotz^, C.J. and De Korte and Amedioff, J.J.

Article 8 of Law 18 of 1892 corresponds with Article 26 of this Law.

The plaintiffs obtained leave to prospect on the unproclaimed farm Rhenosterspruit from the owners,
and pegged off 62 claims. The defendants got the right to prospect on the claims, and undertook to pay
the monthly licence moneys for six months. They round no payable quartz, and ceased to pay licence
money, in consequence of which the claims lapsed to the owners. The plaintiff instituted an action for
damages. The Court found it very difficult to assess the damages, seeing that the claims were of very
little value, and eventually awarded £37 4s. to the plaintiflb, this being I2s. per claim for the 62 claims
for one month. Stow and others vs. Chettter and Oibb^ decided on the Ivth Fet)ruary, 1890, coram Kots^
C.J. and Esselen and De Korte, J.J. (unreported).

The plaintiff, on the 27th of June, 1894, the day when the farm Modderfontein was proclaimed a
public goldfields, pegged off one claim on the aforesaia farm under prospector's licence, and the d^endant
Company, the owner of the farm, also pegged off the same claim on the same day under pro6pector*s
licence ; but the Company obtained its licence before the plaintiff obtained his, on account of the fact
that it was the holder of *' vergunningen ** granted infrattdem legia to its '^dumm^,** a certain Dettalbach.
Held,^n the authority of OaufvB, The Modderfontein O, M, Uoy,^ that the plaintiff was entitled to the
claim in dispute as against the defendant Company. The plaintiff, on the 6th of December, 1R94, also
pegged off 71 claims, and on the 3rd Januarv, 1895, 150 claims under prospector's licences on the same
farm. These claims had previously, on the 27th of June, 1894, been pegged off by the defendant Com-
pany in the same way as the one claim above-mentioned. Held, — that the defendant Company was
entitled to these claims on the ground that the " vergunningen " had expired long before the date of the
plaintiff's pegging, at which date the claims in dispute were being hdd by the Company under ordinaiT
prospector s ucences which had already been renewed several times, and on the groiuid that the plaintin
was aware that the said claims were being held by the Company.

Held, further, that there is nothing in the Gold Law to prevent an owner of a proclaimed Utxm from
j)egging off claims on such farm as an ordinary member of the public, notwithstanding the fact that he
is entitled to certain privileges in his capacity as owner of the farm.

Held, further, that a Company can lawfully employ a representative to peg off claims for it, notwith-
standing the personal nature of Article 61 (c) of Law 18 of lo92, seeing that there is no direct prohil^tioa
of such action in the Gold Law. Frische vs. The Modderfontein O, M, Coy, Ltd, and the, Mining Commi*'
Hxoner of Boksburg, C.L.J., Vol. xiii., p. 76, decided 2nd of December, 1895, coram Kotx£, C.J. and
Jorissen J.

Article 61 (c) of Law 18 of 1892 speaks of '* every white peraon,** as also does Article 61 d Law 18 of
1892. Cf Article 63 of this Law.

The Qold Law. 607

on
ad

Section 2. Judgment as to Payahleneaa,

27. The State Mining Engineer, or such other experts nominated by him, dele- st^MiniiurBn-
gated by the head of the Mining Department, either separately or as a commission, ^IbimM.^'
shall be the competent judges of the payableness of precious metals or precious stones.

Section 3, Exploitation under " MijnpcLckt " or Concession.

28. The owner of a farm or piece of ground on which precious metals or precious ^^"^ may ob-
stones have been found by the owner himself, or, in accordance with Article 26, by a pMsht-brfet^'
prospector, who desires to possess the right to open and exploit mines on such farm or

piece of ground, must be in possession ota '* mijnpachtbrief," to be obtained from the
Government. Of the private grounds or farms published for setting open for a public *^***'*^^^
digging, the "mijnpachtbrief " must be issued for one-tenth portion of the area of that pMshtbdef.
fiirm or piece of ground.

In the measuring of ground for " mijnpachtbrieven," the reef may not be taken in ^^JI^^^^J^
its length only, but the proportion of its breadth to length must be at the most as one UmeMund.
to two.

In no case shall the Government have the right to refuse a " mijnpacht," even if the ®^no° nrfie
Government should decide not to proclaim the ground as a public diggings or mijnpacht
prospecting field.

Where, in accordance with Article 54, homestead grounds are reserved by the ***^°p^**L^
owner before the proclamation of the farm, he shall be entitled to a " mijnpsusht" on grounds.
such grounds, and over the whole surface thereof.

The Government shall not have the right to refuse such " mijnpacht."

Where certain *' mijnpachts " were intended to be reserved to the owners of ground about to be pro-
claimed as a public gold diggings, and everything necessary for the granting of such ** mijnpachts " nad
been done before the proclamation, except tnat the " mijnpachtbrieven " had not been actually signed till
tAaee weeks after sucn proclamation, but the Government considered the ^rant as complete ; Held, that
each informality was immaterial in an action instituted years later for portion of the ground pegged off
wiUiin the " mijnpacht." James Parker RothweU vs. The New JRiet/orUein EstcUes CMd Mine*, lAd,, and
Dr. W, J, Leyds, N,0., C,L,J,, Vol. XL, p. 48, decided on the 22nd July, 1893, coram Kotz4, C.J., and
De Korte and Morice, J.J.

In the case of the Jeufd O.M, Co. vs. Oodhuizen (decided on the 13th of June, 1890, coram Kotz4, C.J.,
and Esselen and De Korte, J.J., unreported) the plaintiff claimed to be declared Uie owner of certain
blocks of claims on the farm Sterkfontein, on whicn the defendant was alleged to have trespassed. The
defence was that the claims had been wrongfully pegged off by the plaintiff on ground which had been
duly reserved by the defendant as a " mijnpacht " oetore the proclanuition of the farm. The Court gave
judgment for the plaintiff on the ground that in the proclamation of the farm Sterkfontein no portion nad
been reserved as a "mijnpacht," and that the defendknt had failed to prove that a " mijnpacht " had been
beaconed off

Cf also CaJthcart vs. The Main Reef O.M. Coy. in Appendix C. Also the case of the Nabob O.M. Coy.
TB. The: Phcenix O.M. Coy. in Appendix G.

29. The '' mijnpachtbrief " referred to in Article 28 shall be granted for a period Duration of
of not less than five, and not more than twenty years. The holder of such ** mijnpacht- brii" '***^^*'
brief " shall, however, be at liberty to renew the said " mijnpacht " for another term of

twenty years or less, subject to the provisions of the law then existing. This right of Renewal for w
renewal shall also be given to holders of " mijnpachten " already granted, after the ^'^'^^
expiration of the term for which the " mijnpsushtbrief " was granted.

H 2

608 The Gold Law.

10^ per morgen The 8um of lOs. per morgen per annum shall have to be paid on the " mijnpacht-
payabie on brief/' payable in advance to the official under whose administration the " mimtMacht"
mij^npacht- jg situated, while the holder of such " mijnpachtbrief " is subject to the following
conditions : —

^/1indB*to"be (1) He shall keep proper account of all finds, and use such forms for that purpose
^®p*- as the Government may find necessary to prescribe.

intpection of (2) Inspection of the books shall at all times have to be granted to the Mining

Commissioner or official under whose administration the ** mijnpacht " is
situated, or to any other official appointed for that purpose.

2^ per cent, of (3) The Government shall at all times have the right to demand, instead of the
. finds in^Meu of payment of 10s. per morgen, payment of 2^ per cent, of the value of the finds

1^ per mor- during the past year, as indicated by the books or other means.

^^rali^to' he ("*) ^^ ®^^^ ^® demanded by the Government officials, the accuracy of the returns
verified. in thc books shall have to be verified on oath by the owner or his book-

keeper.

Further oondi- (5) Such Other couditious as the Government shall consider desirable, not, how-

***^"** ever, in confiict with the spirit or the provisions of this law.

When Daymcnt When the pajoncnt for the "mijnpachtbrief" for such " mijnpachten " is six
b^rieV^ 6 mouths in arrear, the Mining Commissioner or official under whose administration the
months in ar- « njijnpacht " is situatcd shall call for payment of the same in the St(mt8Courant, and
by notice in writing to the owner.

Demand im- The Mining Commissioner or official nnder whose administration the " mijnpacht"
ter e^qpintion is situatcd shallbe obliged to make this demand immediately after expiration of the

of 6 months, gix mOUths.

when^^ ?yrief ^' withiu three months after the date of the publication of such demand payment
^SpBM. of all monies due has not been made, the Government shall have the right to declare

the " mijnpachtbrief " to hare lapsed.

Angi^ of i^n. 30. All angles of a " mijnpacht " must be indicated by stone beacons of masonry,

ted by "stone as stated in Article 43, and bear the inscription: ''Mijnpacht " No (being the

''••*'*^* number of the " mijnpachtbrief "), as also the official beacon number, to be given by
the Claim Inspector, while the sides must be indicated as stated in Article 44.

Holder of mijn- For the proDcr maintenance of these beacons to the satisfaction of the Mining

p^bil * tV'r Commissioner the holder of the " mijnpachtbrief " shall be responsible, according to

Sbiii)nT"*'* Article 3 of Law No. 3, 1864, as approved by the resolution of the Volksraad, Article

519, dated 22nd of March, 1866. These beacons shall, on neglect, be erected and

maintained by the Government at the expense of those entitled to the " mijnpacht,''

after notice has been given in accordance with Article 45.

The absence or the imperfect condition of the beacons can never give rise to a
dispute as to the size of the " mijnpacht," according to the approved diagram, and
according to the " mijnpachtbrief " granted.

Bee the case of the Nabob 0,M, Coy, vs. Phoenix 0,M. Coy. in Appendix C

^IJmf riSitsen- ^^' ^7^^^ hiring a portion of a farm or of a piece of ground from the owner

tiued to mijn. thereof for the purpose of exploiting mines thereon can, in the same way and on the

LeSS^^'notirtuiy samc Conditions as the owner, obtain a " mijnpachtbrief." provided he causes his lease
dmjmandreg- to be drawu uj) notarially and registered. This " mijnpacht " shall be renewaUe as
long as he remains the lessee.

The Qold Law. 609

The Langlaagte Estate G.M. Coy, owner of the farm Langlaagte, leased the mineral riehts on a
^rtion of the farm to the Crown Reef G.M. Coy. When the farm was proclaimed the Crown Reef G.M.
Coy. obtained a " mijnpacht " and owners' claims on the said portion. Then that portion of the farm was
doeed by the Government with the exception of the " mijnpacht.*'

The Langlaagte Estate G.M. Coy. then laid out a township on the said portion which was closed.
The Crown &ei G.M. Coy. began making a tram line through the township from the ** mijnpacht " to
the railway line for the carriage of coal, alle^ng it had a right of passage over the said ground. The
Langlaagte Estate G.M. Coy. obtained a provisional interdict against the making of the tram line. The
Oourt confirmed the provisional interdict, holding that if the Crown Reef G.M. Coy. had a right of
passage, such right should be exercised civiliter and the Langlaagte Estate G.M. Coy. should be consulted
018 io where the tram line should run. The Langlaagte Etttate U.M, Coy., Ltd., vs. T?ie Crotcn Reef G.M.
Coy.y Ltd, (decided on the 23rd February, 1892, coram Kotz^, C.J. and De Korte and Morice, J.J.,
unreported).

See also the cases of Krafi vs. Bok, N,0,, and the WituxiUrsrand Odd Mining Company and Du Preez
ond others vs. Meyer and Van der Wait and Taylor and Claridye vs. Van Jaarsveld and yellmapitis referred
to under Article 51.

32. " Mijnpachten " and leased grounds with licences or " mijnpachten" thereon Mijapachten
may be transferred wholly or in part from one person to another, subject to the SSU^* '"^^
regulation laid down in Article 14, Law No. 7 of 1883.

responsible, jointly and severally, to the Government from the date on which the ^w^epor^

registration of the transfer of the portions accruing to them took place, for the ly^^d^JjJS^

j)ayment in full of all moneys due according to the original " mijnpachtbrief," and for •Wyii'^we.
the strict carrying out of the legal regulations applicable to " mijnpachten."

These regulations, shall as regards division, also be applicable to " mijnpachten "
already granted.

Every deed of transfer shall have to bear a stamp according to Law No. 5 of i>eed of transfer

1882, Schedule A. tobe.Umped.

In the case of a sale in execution of " mijnpachten " and leased grounds the same saie in execution
regulations shall be applicable as in the case of a similar sale of immovable property. o'na^ni^cht.

33. In regard to the renewal of "mijnpachten" under Articles 31 and 32, the ^^^J^**'""^^"'
following rules shall be applicable : —

(1) That no ** mijnpachten " shall be renewed except in the name of the persons Renewal in name

or companies in whose favour they were last registered unless transfer has homI?.
previously been made in the name of the new applicant.

(2) That the renewal of a " mijnpacht " to a lessee according to Article 31 of this ^"JrXn lili

law shall take pkce only when it appears from the contract to be produced unexpired,
by him and notarially registered that the lease is still unexpired or has been
properly renewed.

(3) That when a person was formerly a lessee, but since that time has also Merger of Hghto

become owner of the ground on which the " mijnpacht" is situated, and it ?e8»e[°*' "*
appears that he has in consequence the owner's rignts as well as the mineral
rights in his possession, the renewal may take place.

<(4) That in case a ** mijnpacht " term has expired and it is desired, on renewal of Division of
this " mijnpachtbrief," to divide the " mijnpeicht " in accordance with Article SewaiaS
32, then this shall be effected for as many parts as application for renewal is ^^^'
made for, in which divided " mijnpachtbrieven " the obligations mentioned in
Article 32 must appear, and provided that with each such divided " mijn-
pachtbrief" proper surveyor's diagrams in quadruple are produced.

mijn-
on re-
after ex*

610

The Gold Law.

Benewal of mijn-
pacht-brief for
a portion of a
mljnpacht.

Renewal of mijn-
pacht'brief in
cases of un-
divided mijn-
pachten.

Rene\^'a]forfrom
6 to 20 years.

Conditions o n
• whic^ mijn-

pacht • brief

granted.

New mijnpocht-
brief issued on
fUvision of un-
expired mijn*
pacht-brief.

Registrar of
Deeds must
note division
on oriprinal
milnpacht-
brief.

No concessions
on Govern-
ment ground.

Localities, where
working by in-
dividuM dig-
gers Is not pay-
able, may be
Siren out un.
ermijnpacht,

Bxtentof ground
under mijn-
pacht.

Application to be
posted at office
of Landdrost.

Objections to be
made in vnrit-
ing.

Mining Commis*
sioner shall
send applica-
tion to Govern-
ment.

10s. per annum

Krmorgen to
paid.

When at the renewal of a " mijnpsushtbrief " it appears that the
" mijnpacht " belongs to more than one owner and that some or any of those
owners do not desire to renew their portion or portions, the portion where-
fore application is made can be renewed provided that at each such partial
renewing proper surveyor's diagrams in quadruple are produced, and in cases
of undivided '' mijnpachten " such applicant or applicants shall be entitled to
take out their accruing portion of the " mijnpacht," in terms of paragraph 3
of article 28, while the uovemment must then, within six months after the
day of expiration, proclaim the remaining portion of the original '' mijn-
pacht " public diggings.

(5) That the extension or renewal may be effected for from five to twenty years,
as in the case of a new " mijnpachtbrief ," in conformity with Article 29 of
this law.

(6) That the " mijnpachtbrief " shall be granted on the payment and on the
conditions now laid down by law or to be laid down later.

(7) That in case of the division of an unexpired " mijnpachtbrief " of the portion

to be sold a new '* mijnpachtbrief '' shall be issued by virtue of a notarial
cession, with proper diagrams, and that on application the ori^nal"mijn.
pachtbrief '' must also be sent in, in order that a note of the division may be
made thereon by the Registrar of Deeds, which shall also have to be done
when a portion of a " mijnpacht" is afterwards subdivided.

34. No concessions on Qovemment ground shall in future be granted. When
however, localities are discovered where the working of claims by individual diggers
is not sufficiently payable, or where the ground, after having been worked as claims,
has been abandoned, such localities may be given out under " mijnpacht '^ to a digger
or diggers for a fixed number of years, for the purpose of working them by machinery
or otherwise, on the following conditions : —

(a) The extent of pieces of ground given out under " mijnpacht " shall not be less

than 150 by 150 yards or greater than 500 by 500 yards.

(b) Every application shall be posted for one month at the office of the Landdrost
of the respective district, or should the ground be under a Mining Com-
missioner, at his office, and also on the ground applied for, and shall contain
a full description of the ground as to extent, situation, and whether it has
been already worked or not.

(c) Anyone concerned has the right to raise objections to the granting under
" mijnpacht " of a piece of ground, which must be done in writing giving the
gx)unas of his ob ections, the validity of which the Landdrost or Mming
Commissioner shall enquire inta

(d) Immediately after the expiration of the time of notice, the Landdrost, or the
Mining Commissioner, shall send in the application to the Head of the
Mining Department, with his report. If the Government, after consultation
with the Head of the Mining Dnpartment, approves of it, then the
"mijnpacht" shiJl be granted, according to the fonn appearing in the
schedules of this law.

(e) For this " mijnpacht " a yearly i*ental, always payable in advance, shall be
paid, calculated at 10a per morgen yearly. The '^mijnpachtlMHief "* shall have
to bear a stamp of the value of £2 10s.

The Qold Law. 6ii

(f) " Mijnpachten" may be transferred in the same manner and under the same Trjjnrferofmijn.
conditions as claims and other mining rights.

ig) If the ground for which a " mijnpachtbrief " has been granted is not worked, "^gSSSf mijn^
the " mijnpachtbrief " shall not be renewed except with the express written i>j<*t "^^™

, •* /xv r\ i. r r ahijl not be

consent of the Oovemment. renewed.

(h) Such other conditions as the Government shall consider desirable. ^^JSSf °**"^'

See the cases of Boyne and Nightingale vs. The Spitzkop O.M. Company, and the Spitzkop O, M.
€hmpany vs. Stanley and TaU, referred to under Article 62.

See also the cases of Oilhaud and Co. vs. Walker and others ; Cohen^ Qoldachmidt and Co. vs. Stanley
and Tale ; Stanley vs. Ooldschmidt and Co. in Appendix C.

35. When, within private ground which has been proclaimed as public dig^gs, ^'^SSb^S
localities are discovered where the working of claims by individual diggers is not diwduid W
sufficiently payable, or where the ground, after having been worked as claims, has Jbfef °vd8^
been abandoned, the Government, after consultation with the Head of the Mining SJip*^*^!^
Department, shall have the right to give out " mijnpachten " on such localities, in *>"* "°^*'
accordance with the provisions contained in Articles 28, 29, and 31 of this Law. mijnpe43h

36. Persons or companies holding concessions or " mijnpachten " on private or on ^S'JJ7ioi8°**or
Government ground, shall be at liberty, without violating the concessions or " mijn- "J^^^^J^J^
p«chten," to permit persons to dig on their own behalf on such grounds under conces- ©then to dig.
aion or " mijnpacht, ' under such lawful agreements as the said concessionaries or

*• mijnpacht " holders and persons may mutually enter into ; provided that each

person so digging takes out a licence from the official under whose administration the ^"****{j[jf/JJ|J

ground is situated. On such a licence it shall be clearly stated on which ''mijnpacht'' Tuoenoe.^

or concession the same is granted, while the payment shall be the ordinary licence

money per claim.

The regulations regarding claims are applicable here, excepting those relating to ^^JSJS^^aiSi
the reversion to the Government in case of non-payment of the licence monies, while J^'^^J^Sn
further the extra licence monies, according to Article 86, second paragraph, need not exceptions.
be paid. The 2^ per cent, mentioned in Section 3 of Article 29 shall not be levied on
these daimholders.

The concession or " mijnpacht " holder is obliged to give notice to the official ^SSrion^JSi
finder whose administration the said ground is situated, of every permission granted.
Every contravention shall be punished with a fine of not more than £10, or, in default Penalty.
of payment, with imprisonment as laid down in Article 8.

37. Diggers on ground under a concession or "mijnpacht" shall be under the^^iJ^J*^^
Mining Commissioner under whose administration such ground falls, or the nearest 3^°^!^^^
Mining Commissioner or the Landdrost of their district, according to the decision of tfon of the
the Government JSSl^er?^'

38. The concessionaire or "mijnpacht" holder who allows diggers to dig on the ^^r^iSjnpS^
ground which he holds under a concession or " mijnpacht," in accordance with Article J^^'^ ^^J^
36, shall be entitled at the end of every month te receive from the Government three- fourths of the
fourths of the money paid for licencea uoenoemon^.

Section 4- Prodamation and Throvring Open as Public Diggings.

39. The State President has the power, with the advice and consent of the Execu- ^^ ISSH^
tive Council, to proclaim and throw open as public divings Government ground gj^^p^
and, after consultation, if possible, with the owner, a&o private ground, or to rtoiumL
attach the same to an already proclaimed field, whereby it must be kept in view that

612 The Gold Law.

PMciAmfttion af- no ground shall be proclaimed that is not necessarily required for the diggings. Th&

notior^in issuing of such a proclamation of Qovemment and private ground shall, however, not

staatBoowrant j^j^^ place exccpt after publication of notice during six weeks in the Staatscoiurant ;

such notice shall further be posted up either at the office of the Mining (Commissioner

^?Slirofflc»of within whose jurisdiction the said ground is situated, or at the office of the nearest
Minkig Com- Lauddrost. The proclamations of Government and private ground shall, however^

procianuitioB to after the expiration of the notice above-mentioned, have to be published in the SUuita-
%MU^miu courant at least 30 (thirty) days previously, stating day and date of throwing open.

at least 30 days

In future no private or Government ground, declared a 'public diggings by pro-
clamation, shall be available for the pegging off of claims, before that the proclamation
has been read by the official imder whose jurisdiction such ground is situated in front
No pegging of of his officc, and where also the licences shall be issued for the first time. No pcrrson
reading of pre^ shall have the right to peg off claims before he or his deputy is on the ground he
damation. intends to peg, with his licences.

If owner does 40. So loug as the owHcr himsclf does not prospect, or has not given permission

oraUowoSera to othcrs to do SO, the State President, with the advice and consent of the

So^dSnndt Executive Council, shall have no power to proclaim his ground as a public diggings or

beprodaimed. prospcctiug field, uor shall anyone else be able to force him to allow his ground to be

prospected.

Three^mont^ 41. The Government shall give notice of its intention in the Staatscoiirant to the

given to the owncr of the farm or piece of ground which it wishes to throw open as a public
tended procia^ diggings or Drospccting field, three months before the proclamation of the throwing
mation. open takes place, so as to enable the owner to peg off his owner's claims accordino^

to Article 48, and to take out his "mijnpachtbrief " and to define his homestead,.

bi^ilding, and arable lands according to Article 54.

The Government must observe the law from which it derives its power.

The Grovernment cannot decide whether or not a person has forfeited his rights.

The Government is bound to give the owner notice, in the way prescribed by law, of the intended
proclamation of the fai*m as a public gold diggings.

It is for the Court to decide whether or not the Government has exceeded the power given it by law.

The receipt of the owner's share of the licence money for claims yegged o£f on ''mijnpacht " eround
is not sufficient to empower the Government of its own accord to deprive such an owner of hia ** mijn-
pacht " right.

Possessors of claims on ground wrongfuUy proclaimed have no loais standi or right to intervene in aa
action to set aside such a proclamation instituted by the real owner against the Government, and must
endeavour to maintain their right by way of a septarate action. The United Langlaagte 0,M. Co., Ltd. vs.
The State and the Langlaagte Royal and the Rand 0,M, Co,, Ltd. Official Reports. Vol. /., Part i, p. S4
(decided on the 10th February, 1S94), coram Kotze, C.J., and Ameshoff and Morice, J.J.

Before prociama- 42. Before the proclamation of a public diggings takes place all private grotmtk

UoundT^Jlit ^^^11 ^ properly surveyed and diagrams thereof shall be made, which diagrams must
beBurveyed. be approved 01 according to law. The lines between the beacons shall also be-
beaconed off, according to Article 44, by a duly admitted land surveyor.

likewise Gov- All Govemmcnt grounds to be proclaimed as public diggings shall in like manner

ground * ** * be surveyed and put into diagram, where possible, previous to proclamation. Thd
lines between the beacons shall, however, in every case be beaconed oif, according to
Article 44, by an admitted land surveyor.

]

The Gold Law. 613

If private grounds to be proclaimed are not surveyed by or on behalf of the if private
owner of such grounds within three months after the date of the notice to do so, and m^e}^Tf!i^h-
the diagrams sent in to the office of the Surveyor-General, the Government shall have noti^^'^oo?'
the right to cause the survey to be done at the expense of the owner. emment shau

o *f r cause survey

43. All angles of all surveyed proclaimed grounds shall be indicated by sauare AiiangiSofpro-

d the grounds shaU
>e indicated by

official number of the beacon, shall appear.

beacons of solid masonry, four feet high, bearing a notice in which the name and the ^,
number of the farm, agreeing with the registers of the Registrar of Deeds, besides the ^

44. The sides of all surveyed proclaimed grounds, farms, portions of farms, being ^^b^roiT^^tlw?
divisions of proclaimed public diggings, shall, except where natural boundaries exist, cons.

be indicated at clearly visible distances by round intermediate beacons of masonry,
three feet high, and also, should the Head of the Mining Department, after consulta-
tion with the Surveyor-General, consider it necessary, where the nature of the ground
admits such, by a trench at least six inches deep. , The distances of such beacons from sometimes by
each other shall not be less than one thousand (1,000) yards. trench ai»o.

45. The erection of the beacons referred to in Articles 43 and 44 shall, on State Beacons on state
ground, be eflfected by the Government at the expense of the State after calling for STexpense of
proper tenders. In the case of private grounds, written notice shall be given to the ®****"
owner by the Government within seven days after the State President has decided te in case of prfv-
proclaim such grounds under this law, to erect the beacons ; should the owner not writtenTo't^
comply therewith within six weeks after the date of this notice the Government shall, £" uie^owner
after calling for proper tenders, cause the beacons to be erected at the expense of the to erect bea-
owner. ^^

46. A number of claims, not exceeding sixty, may be granted by an owner of a Number of "ver-
farm of 2,000 niorgen or less as " vergunnmg" claims te other persons and allotted fwiSs? *"^

f)rior to the proclamation of such farm or piece of ground subject to the ordinary
icence after proclamation. For every hundred morgen that the farm or the piece of
ground consists of in excess of 2,000 morgen the owner has the right to give out two
claims more under the same conditions as laid down in the foregoing paragraph.

See the cases of Gattf vs. The Modder/oiUein 0,M, Co,, Ltd., and The Mining Commiaaioner of Bokn-
hurg ; Frische vs. 7%e Modderfontein 0,M, Co, and the Mining Commisitioner of Boh^irg; and Stow atid
others vs. Cheater and Oibb, referred to cinder Article 26 of this law.

The limitation of the number of ** vergnnniug '* claims was introduced by Law 14 of 1S94, Article 10.

47. The discoverer of precious metals or precious stones in payable quantities on iwscoverer of
private farms or Government grounds, at least six miles distant from an already ftu11t"?eiirt*6
worked locality, shall, on the proclamation of such farm or ground, be entitled to ^^^^ ^iSSiy
retain and beacon off six claims, whether they be reef or alluvial, which shall be called workediocaiity
and registered as prospector's or searcher's claims. Moreover, he may work thereon S diimS!^"
without licence as long as he remains owner thereof. ^'S^ithout*^^"

__ ence

48. Should the State President, with the advice and consent of the Executive owner n^y p«
Council, desire to proclaim or throw open a farm or piece of ground, or a portion ^i^,Jj|j **S3oro
thereof, the owner shall have the right to peg off his owner's claims for himself before other diggera.
diggers (the searcher or prospector who discovered the precious metal or precious

stones excepted).

The owner or owners of a proclaimed farm or farms shall be entitled to peg off Number of own.
for himself or themselves a number of claims, whether they be reef or alluvial, which «''8cWnw.
shall be called owner's claims, viz., for a piece of ground of 50 morgen or less, one
claim ; for a piece of groimd of from 50 to 200 morgen, two claims ; and for every

614 The Oold Law.

^ p?S?io'i« 250 morgen in addition, one claim more, with a maximum of ten claims for a farm ;
jjj^hMtbcand to hold these claims mider licence, after the prospector, who discovered the
pegoffciaimi. precious metal or precious stones in payable quantities, has pegged off his prospector's

claims. After this pegging off of prospector's " vergunnin^^^ and owner's claims,

diggers may peg off claims for themselves according to law.

See Oauf vs. The Modder/onUin O.M. Co,, Ltd, and Friache vs. Tht ModderfaiUein 0,M. Co,, Ltd,,
referred to under Article 26 of this law. With Article 48 of this Law compare Articles 14 and 17
of Law 18 of 1892.

Diaooverer

^^ metal 49. The prospector who, in accordance with Articles 26 and 47 of this law, dis-
hu' ?i* hts ^ov®^® precious metals or precious stones in payable quantities, shall not lose his
throiurh the rights through the unwillingness of the Government to proclaim the ground a public
SfoSveSSSJt diggings or to attach the same by proclamation to an already proclaimed farm or

tjprocWmthe diggings.

^^riSi 'toe ^^' ^^^ holder of a prospecting licence shall, immediately after investigation has

rijBrbtoofanor- been made on his report, and the Government has decided as to the payaoleness of

^ *^'* the precious metal or precious stones in the grounds discovered by him, as is provided

^groSn'd *hc ^^ ^^® forcgoing article, enjoy all the rights of an ordinary digger, over and above his
th*^' *^*Y^« special right as prospector, and he shall have these rights on private ground even

even

though though the same be not proclaimed as a public diggings. He shall in that case, in
proS«?med.**' Order to be able to work his claims, be entitled to such use of the water on the farm
^■u<±di»^/erer ^ ^^Y ^ agreed upon in writing between him and the owner of the farm.

When tws ar- This article shall not be applicable when a landowner specially hires somebody
piiotbie? ^^ to prospect for him, or when a separate agreement is made before the granting of the
written permission mentioned in Article 26, whereby the prospector, in order to obtain
the written permission, waives his claim in writing to the benefits under this article.

^°*'uce*^e ^^' ^^^ owner of the private proclaimed ground, on which digger's and pros-

money, pecting licences are issued, shall receive half of the proceeds of the digger's and

prospecting licences monthly.

^ILli'#«?,!»l! Of the proceeds of stand licences the owner shall receive three-fourths and the

three • fourths <• i m\ • ... ^• t t • ^

of proceeds of Government one-fourth. This provision is not applicable m cases where contracts
cencea. j^^^^^jj ^jj^ Govemmcnt and the owner already exist

^'SSSe*'oSt ^ ^^^ accounts for all these monies shall always be made out in the name of the
nameofowner. owucr, and the mouics, even in case of lease (a), shall be paid out to the owner or his
authoritised representative only.

In the case of Krc^fl vs. Bok, N,0,, and the WUioaterirrand Oold Mining Company (decided on the 20|li
of June, 1887, coram Esselen and Jorissen, J.J. C.L.J., VoL V., p. 14), the question was whether tbB
lessee of the mineral rights on a farm obtained thereby the right that would otherwise, under Article 15 of
the Gold Law of 1885, belong to the owner, of receiving half of the monies paid to the Government for
prospecting and digger's hcences on such farm after it had been proclaimed a public goldfield
under Article 10 of uie Gold Law. The plaintiff in the case, who was the owner of the farm Driefonteiiit
had before the proclamation of the farm entered into a contract with H. W. Struben, by which the former
leased to the latter ** all the mineral rights of whatever sort accruing to the first undersigned (Kraft) as
ownei of the farm ; and the action arose through Kraft's claiming from the Grovemment the half of the
licence monies f>aid to the Government for claims pegged out on the farm after it was proclaimed, wbioli
monies the Government had been proceeding to i)ay to the Witwatersrand Gold Mining Company, as
cessionary from H. W. Struben of the lease. The aecision of the (Ik)urt was that the owner of the tarOf
* the plaintiff, was entitled to the half of the licence monies, as the right to receive such monies was not a

right to minerals, and was, therefore, not included under the words "all the mineral rights of whatever
sort accruing to the first undersigned (the lessor) as owner of the farm " used to describe the righto
passing to the lessee.

The Gold Law. 615

It most be noted that when this case was decided (20th of June, 1887) Law 10 of 1887 had not come
into force. The words " the accounts of all these monies shall always be made out in the name of the

•owner, and the monies, even in case of lease, shall be paid out to the owner or his authorised representa-
tive only " do not appear in Article 15 of Law 8 of 1885. They were introduced by Article 5 of Law 10 of
1887. This, as is remarked bv Idr. Morice (now Mr. Justice Morice) in his article in the " Cape Law

•Journal," VoL V., p. 15, would seem to indicate that the judgment was in accordance with the intention

•of the legislature.

In the case of Du Preez and others vs. Meyer and Van der Walt (decided on the 23rd of February, 1887,
coram Kotz^, C.J. and Esselen, J., C.L.J., VoL V., p. 15) it was held that under the Gold Law the lessee
of a farm on an ordinary, t.e., an agricultural lease, obtains no rights as regards the precious metals or
pegging out claims, though the owner cannot exercise his mining rights to t^e porejudice of the lessee in
Jthe enjoyment of his rights under the lease. The same case also decided that it is not necessary to make
the Government a party to an action for setting aside a ** mijnpacht."

In the case of Taylor and Claridge vs. VanJaarsveld and Nellmapiua (Feb. 26th, 1887, coram Kotz^,C.J*

.and Esselen, J., C.L.J., VoL V., p. 18) the i>laintifG9 sued for specific performance of a verbal contract by

which the first defendant bound himself to give the plaintifb the exclusive right of prospecting for six

months, with the right, if they had found payable minerals, to take out a lease of the mining rights of the

farm, which subsequent lease was to be executed according to law. It was argued for the defendants that

this verbal contract was void in virtue of Article 14 of Law 7 of 1883 (upon transfer dues), which states

that " no cession of a right to minen^ assumed to be present or actuallv present on a farm, shall be

valid unless embodied in a notarial document and dulv registered in the office of the Registrar of Deeds,"

.and goes on to enact that transfer dues must be paid, such cessions specially referring to leases. The

Court decided that the contract of the first defendant was not a cession or lease, but merely gave the

option of taking a lease at a future time ; and, therefore, did not require to be notarially drawn and

reratered. Whether the contract could be described as an agreement as to the cession of mineral rights,

.azid, therefore, included in the words of the Volksraad resolution of August 12th, 1886, was expressly left

.an open question b^ the Court, the contract being prior to the date of such resolution. The resolution

.above mentioned is to the effect that all agreements as to the cession (omfrent den a^standj of rights to

* minerals shall be void, unless notarially drawn and registered in the Deeds Office.

See also Pearee vs. Olitner and others in Appendix C, and Steyn vs. Bezuidenhout in Appendix C.

52. When a desire is expressed by way of memorial by inhabitants or by ^T^^jSlm 2^
•occupiers of a location that town commonages or native locations be thrown open ^^Jf**io^
•either wholly or in pai*t, and such appears to the State President desirable and tions.
practicable, he shall have the power, with the advice and consent of the Executive
Council, after consultation witn the head of the Mining Department, to throw open
these grounds, either wholly or in part, for prospectors, or to declare them public
tliggings under the provisions laid down in this law for Government ground, provided,
^however :

That no ri^ht to prospect or to dig on the town commonage shall be granted ^??"?f**two-
unless application therefor is made by at least two-thirds of the burghers and ^^ ©J in-
inhabitant of a town.

That no right as above shall be granted unless the town commonage of any town Not to interne
is of sufficient size to cause no interference in that respect with the requirements of gnuing.*
cattle-grazing.

That all roads and pathways leading to the town shall remain unobstructed. ^^roct^ ^

That no trees or other wood shall be used or removed for carrying into effect the ^\J^^ ^
•rights to be granted.

That no encroachment shall be made on any existing rights to the leading and no encroach-
the use of water, whether it be for public or private purposes, and such encroachment S^wlS.'^****
•shall be punished in accordance with the penalty clauses of Article 146.

That all rules and regulations with regard to public diggings on Government ^^^Sd to paUio
grounds, as laid down in the now, amended Law No. 8 of 1885, as &r as the same are oK^TRjniit
.cc«npatible with prospecting and digging on town commonages, shall be observed. ^^

616 The Gold Law.

^wBuetobcuS^^ That a certain portion of the nett revenue of the diggings, to be fixed later hy
for improve- the State President, with the advice and consent of the Executive Council,. shall be^
ment of town, applied f or the benefit and for the improvement of the town.

^^ '^'^** The State President shall be empowered, with the advice and consent of the
Executive Coimcil, after consultation with the head of the Mining Department, to
make such further provisions as may be necessary for the regulation of affairs, pro-
vided they are not in conflict with the above rules or principles.

8«*^ for pre. 63. When a chief, with the advice of his coimcil, desires that investigations-

on locations, should be made as to the presence of precious stones and precious metals on the
location which he occupies with his people, he may request the Government to cause
such to be done by white pei*8ons.
pigerenc^grfven ijij^^ persous proposcd by the chief and his council shall enjoy the consideratioa

w5S?^xproIS* ^^ *'^® Government in the first place. Should the Government consider it desirable
fcted for exten- to authorise othcr persons, this can be done without reasons being given; those
on o oca on p^j.gQjjg excepted whose farms were expropriated by the Government for the purposes
of the extention of the location, to whom the preference shall be given. The Govern-
ment shall cause to be pointed out to the person or the persons authorised by it what
portion of the location is made available for prospecting.

^Til^^ionr" When it appears through prospecting that precious stones or precious metak are

oca ionj». £^^^j jjj payable quantities within such locations the State President shall have the

right, with the advice and consent of the Executive Council, to declare these grounds,.

either wholly or in part, public diggings, under the regulations laid down in this law

for government grounds, provided, however :

^S^nfritfhu! (1) That grazing rights shall be left to the chief and his people.

"^T^inteSter^ (2) That their " kraals " (cattle pens) and lands shall be excluded and shall not be
^*^- disturbed except with their consent.

^•**'* (3) That sufficient water shall be left for their domestic use and for their cattle.

"'^^SStedT*' ^^) '^^^ * " mijnpacht " may be granted to the person or persons authorised by

the Government to prospect, when they give sufficient proof of the payabU*
ness of the grounds, under the provisions of this law, the size to be fixed in
consultation with the Superintendent of Natives and with the head of the
Mining Department, but in no case greater than the ihaximum fixed for
private grounds by Article 28, par. 2 and 3 of this law, computed according
to the number of morgen to be thrown open.

^'uf"**''IIn*d (5) That compensation, computed at a fourth of the proceeds of the licence and
their people. " mijupacht " mouics, shall bc granted to thosc chiefs and their people who

have received the locations gratis from the Government.

(6) That compensation, computed at a third of such proceeds, shall be granted to

those chiefs and their people who have acquired the location grounds, wholly
or in part, at their own expense.

(7) The Government is empowered to make such regulations as it may deem fi^

with regard to the portion of licence and " mijnpacht " monies to be awarded
to Moshette and the kaffir chiefs standing on an equality with him.

^T aSd 'd?;!^- 5*- Where private grounds are proclaimed public diggings, or are attached hf

l^ing "hall be proclamation to already proclaimed fields, or are made av^able for prospectors, tte

iJovemment shall first consult with the owner, if possible, to determine on what pW*

of ground, such as plots which are built on, homestead ground, gardens^ Imxiil

The Gold Law. 6iT

grounds, " kraals/' lands, and watercourses in the neighbourhood thereof, it shall be
prohibited to prospect and to dig. On unworked farms or portions of ground, where
there is no occupation, the owners in conjunction with the Government, the Mining
Commissioner or the Landdrost of the district, may beacon o« a " werf " (homestead ^^g**,2LSS"*cS
ground) which shall be reserved for homestead, building and cultivation lands. The Jl J^^^^^J
stipulations of Article 28 par. 3 shall be applicable to these " werven " (homestead gwaaOL,
ground).

See the case of the WitwcUer»rand 0,M, Coy. Ltd, vs. Young, referred to under Article 16 of this law.

55. Under any circumstances sufficient water shall remain free for the use of the ^Jj^^' ^^ ^
owner, his family, his cattle, and for the watering of all gardens and lands existing at
the time of the proclamation, and for the working of " mijnpachten " granted under
the provisions oi this law.

The Quantity of the water required for these purposes shall, before the proclama- oa^nj^f quja
tion as public diggings, by order of the head of the Mining Department be gauged required,
and determined by him. This water, so gauged, may afterwards be used by the owner
for other purposes or disposed of by him.

The rest of the water and the water that is not so used shall at all times be s^jjju* wat« to
allowed to flow away unobstructed. The use thereof shall be regulated by the lawful etmcted.
authorities, according to the provisions of this law. Lessees, servitude-holdera, or
others entitled to water, retain the right to such water in so far as they make use wirtCT«ori«^
thereof at the time of the proclamation for the purposes mentioned in the first para- hoidext.
graph, and after the quantity thereof shall have been fixed by the head of the Mming
Department, which shall take place before proclamation. In this respect the pro-
visions of the second paragraph of this article apply.

The farm Zandrivier (Zoutpansburg) was proclaimed a public gold-fields on October the 6th, 1887, but
a portion of the farm containing the dwelling-nouse and lands of the plaintiff was reserved. The plaintiff
obtained his water supply from a spruit running through the farm. The defendant company secured a
water-right higher up on the same spruit. The plaintiff instituted an action against the defendant com-
pany for a declaration of rights to have it declared that the company was not entitled to take water from
the spruit for its "battery. He also sought a perpetual interdict against the company preventing^ it from
using the water and from allowing its tailings to run into the spruit and thence into his dam, maintaining
that owing to the reservation of his dwelling and lands no water-right could be j^nted under the Golu
Law so as to affect his rights. It was held by the full Court (De Korte, Ameshoff and Morice, J.J.) that
nnder Section 30 of Law 10 of 1887, the water-right was rightly granted to the company, although it
affiacted the rights of the plaintiff.

Held, further, that § 47 of Law of Law 8 of 1885 must be interpreted strictly, and does not permit
the filling up of furrows or other watercourses with tailings.

An interdict was accordingly granted, restraining the Companv from allowing its tailings to run into
the spruit, and it was further ordered to remove such tailings as nad run into it, and to pMiy the olaintiff
£200 as compensation. /. /. Mar6 vs. Mount Mari O, M, Coy., Ltd., decided on the 2nd of February,
1892 (unreported).

§ 30 of Law 10 of 1887 gave to the old Digger's Committee the right to frame regulations with regard
to the division and use of water.

Cf. § 126 of this Law.

§ 47 of Law 8 of 1885 is replaced by § 125 of this Law. «

In the case of Steyn vs. Johnson and the Diggers* Committee of the WitwtUersand Ooldjtelds (11th Nov.,
1887, C.L.J., Vol. v., p. 15), an application was made by Steyn as owner of a farm to set aside a grant of
a wster-rieht on his farm by the Diggers' Committee on the ground that it had been granted contrary to
the Gold Law. The judge refused to decide the matter on amdavits, but, giving the owner the advantage
of being regarded as m possession, decided that the digger who had obtained the grant of the right from
the Diggers' Committee must make good his right by action.

66^ The Government shall further have the right to require from the owner or ^^^Sj^ *'**^"
his representative that these grounds for occupation be properly enclosed, and that a mm ^^^
diagram thereof be made within a time to be fixed by the Government, which time, *'^ "doMd.
however, shall not be shorter than three months.

618 The Oold Law.

If within the time fixed this be not complied with the Government shall have
the right to do the said work at the expense of the owner or his representative

oovernment 57 Qjj ^"^^ private fi^ounds referred to in this article the Government shall have

inay use por-

tioM of pro- the right, as long as the proclamation continues, to occupy and to build thereon,
vate pmind without pajoneut, such pieces of ground as shall be necessary for offices and other
fw^biicpur- pui[jii^5 buildiugs, for the deposit of rubbish, for burial grounds, and for other general

Eurposes. Such pieces of ground shall, if possible, after consultation with the owner,
e beaconed off by the Mining Commissioner at the expense of the State, and a
diagram thereof shall be drawn up by a qualified surveyor, and these places may not
be pegged off.

The buildings referred to in the previous paragraph shall remain the property of
the State.

wbcn ground on 58. Qu private proclaimed farms, two years after the proclamation of the same,

claimed fanns pieccs of grouud may be given out for gardens and plantations, on places where it

may be given „^^^„^ i.v.«^ 4.U«^^ «^«. «^ «rNl/1_Kr.«*^^« «^«*« r.^ ..lU^.r^^l /l^^vr^^fo ^-^^^^4- ,^^A^^ ft^^

out for nr- appears that there are no gold-bearing reefs or alluvial deposits present, under the
plan- f ollowinsr conditions :

ma|r
out

uSn"!!^ P^"* following

How effected. (1) The issue of such grounds is effected by the Government, on the request of

the owner, under such conditions as it may determine, after investigation by
the Mining Commissioner concerned, and on the proposition of the head of
the Mining Department.

^bwkrini r^ii ^^^ ^^ ^^ should aftcrwards appear that gold-bearing reefs do exist there, that
be diacovered. portiou which such rccf s pass through shall be riven out in the ordinary

way, with this proviso, however, that if damage is done to gardens or planta-
f ^r^^dl^i^ tions, such damage shall be paid for by the licence holder or holders acoord-

trLtio^^^*' i^g ^ assessment to be fixed by arbitratora

^ ma** not*"i2 ^^' ^^®^ pieccs of grouud are given out, according to the foregoing article, for

used f!>^ any gardens and plantations, such pieces of ground may not be used for any other

other purpose. ^„„^^«^

•^ purpose.

^'^*°* 60. Where, on the various proclaimed diggings, a person or company, holder of

claims or a *' miitpacht," desires to make a dam for the collecting of taihngs (a) or rain
water (provided it be not from an existing water-course or fountain), to lay down a

^^^^ tube, pipe, or other conductor, for the bringing of water to his or its machine stand, or

Roadways. to coustruct a roadway for the conveyance of quartz or material from the claims or
" mijnpacht " to the machine stand, whether it be for ordinary wagons drawn by
draught animals, or for so-called trucks conveyed along rails, provideasuch trucks be

Perminion by not propelled by steam or electricity, the Mining Commissioner may grant permisaiQii
JSlSSier!^"'"- for that purpose.

Written appiica* If such watcr-raccs, ordinary roads, or truck rails go over claims, " mijnpachtB,**

water-courses, streets, railways, tramways, or stands of other persons, the applicant,
in order to obtain the necessary permission for the construction and exploitation of
the same, shall have to make a written application therefore to the Mining

PubiicaUon. Commissioner concerned. This application shall be published for a month in the
Staatcourant, and in one of the local papers, by and at the expense of the applicant,
for the information of paities, who must within that time send in their objections and
claims to compensation to the Mining Commissioner concerned. Anv person cod-

oompeniation structiug such watcr-raccs, dams, roads, etc, over claims, " mijnpachts,' etc, withoirt
o jections j^j^^^jj^g obtained the permission of the Mining Commissioner to do so, shall be

Pmaityr. punished with a fine not exceeding £10, or on dera.ult of payment, with imprisonmeot

for a period not exceeding six weeks, without prejudice, however, to the nght of tba

The Gold Law. 6ie

naatlon
arbi.

owner or the owners of the surface to compensation. The amount of such compensa- comDem
lion shall be determined by two arbitrators. One of them shall be chosen by the Siuoi!!^
applicant and the other by the interested party. Should the arbitrators differ, the **lSJS|f^^^*^
Mining Commissioner shall act as referee, from whose decision there shall be an addmi' 'f ^om
appeal to the Head of the Mining Department, whose decision shall be final. ^H^er^o

See the case of The LanglaagU EstaU G.M Coy., Ltd., vs. The Oroum RteJQ,M. Coy., Ltd., referred SSSiJtolS?'
to under Article 31 of this law.

(a). The plaintiff company aUowed its tailings for two years to run down a creek and took no steps
to prevent Uieir being entirely washed away. The defendants afterwards pe^ed off the ground on which
the tailines had been washed. The company in an action claimed the tailings, but Uie Court held that
there had been total abandonment, and gave judgment for the defendants.

ShdHJt Q.M. Company Ltd. vs. Vautin, MiUboume and Steers, decided on the 5th of March 1889,
coram Esselen, Jorissen and De Korte, J.J. (unreported).

61. The Government may, by special agreement, grant permission for the laying ^I!^^^^^
ot conductors for the transmission of electrical currents for the use of the mines and eiectnoAi'cu?
mining works. '^^^

62. An area once declared a public diggings or portion thereof may not be closed ^^° » p«>-
either wholly or in part, except in the single case when the number of diggers within nu^ cIomSl

the boundaries of such portion which it is requested or proposed should be closed is
less than a number computed at one digger for every twenty morgen, provided always
that the closing of such proclaimed ground shall not affect the rights and claims to
machine stands, tailing deposit sites, water-rights, or other possessory rights already
obtained. In the event of the closing of a public diggings or portion thereof six six months' no<
months' previous notice thereof shall be given m the StaatsSyurant, and at least once ***^'
a month in a local paper, should there be one, in the latter case at the expense of the
applicant. A diagram of the digging or farm or portion thereof, the closing of which ^^*TS^J?S"*
has been requestea, shall lie for inspection at the office of the Mining Commissioner **' "■?*»*»<»•
during the period of the said six montha All objections filed during the said six
months shall be heard on the last day of such term, or, if this day fall on a Sunday or Hearing of ob.
a holiday, the day after. Moreover proper provision shall be made for the continuance i«wt*oni,
of the work of those whose claims have not yet been exhausted, or compensation shall compensation.
be granted. The amount of such compensation shall be fixed by mutual agreement Arbitration.
between the Government and interested parties and, in case they cannot agree, by
way of arbitration.

The farm Elandsfontein was proclaimed a public gold diggings. Subeequently the defendant
oompany prevailed on the Government to close a certain portion of tne proclaimed farm under § 00 of Law
8 of 1S90. The plaintiff went and p^^ed off claims on the portion thus closed, maintaining that the
danng was illegal, on the ground that the number of claimholders on the proclaimed area exceeded one
lor every 20 moreen of ground. The defendant company ordered the plaintiff to remove his pegs and
refused to aUow nim to pe^ off claims on the abovementioned portion. The plaintiff sought the confirma-
tkm of a provisional intenuct restraining the defendant company from interfering with his pegging. The
company maintained that the words *' zoodanige delverij," appearing in § 00 of Law 8 of 1890, reared to
the portion dosed and not to the area proclaimed, and all^^ tnat there was not one claimholder to every
20 morgen of ground on the portion closed.

Held (per Kotz^, C.J., De Korte, and Morice, J.J.), that the interdict must be confirmed.

Held (per De Korte and Morice, J.J. ; Kotz^, C.J., reserving his opinion until action brought) that
Article 00 lays down the condition under which alone the Government has the right to dose any public
di^^ngs, and that the words ''zoodanige delverij" refer to the whole area proclaimed and not to the
portion closed only.

Williams vs. The Oddenhuis Estate Gold Mining Coy., Ltd., and Dr. W. J. Leyds, N.O., decided on the
JOth of November, 1898 (unreported). N.B.— The application for confirmation of the interdict is not
nported, but the subsequent action is {vide ir\/ra).

Held, by the majoritv of the Court (Kotz^, C. J., diss.), that the correct construction of Article 60 of
the Gold Law of 1890 is that the Government can only close a portion of any proclaimed area when the
number of diggers on the entire proclaimed area average lees than one digger to every 20 morgen.

620 The Gold Law.

Held, also, that where the Court has plaoed an interpretation on a point of law, and the reading of
the Volksraad differs therefrom, the Volksraad should not assi^ to it a construction conflicting with the
decision of the Court, but the proper course would be for the Volksraad to modify the terms of the law to
accord with its (the Volksraad^) view, while accepting the Court's decision.

StrMty the number of licences issued is no test of the number of dicrgers present. WUliams vs. The
Geldenhuis Estate and Gold Mining Cay,, Ltd., and Dr. W. J, Leydn, N.O, (C.L.J VoL XI.. p. 128.)

See First Volksraad Besluit of the 13th June, 1893, which alters section 60 of the Gold Law, and
speaks of one digger to every 20 morgen of the portion to be closed.

In 1889 a portion of the proclaimed farm Doomfontein was given to Fawcus bv the Government for the
tiurposes of a township, and notice given thereof in the StaaUcourant, In Novemoer, 1891, the agreement
•oetween the Ciovernment and Fawcus was cancelled and the cancellation duly notified in the Staatsc^mrtuU
of the 25th November, 1891. On the 27th November, 1891, the plaintiff pegged off certain claims on the
^bovementioned portion. In December, 1891, the Mininflr Commissioner remsed to renew the licences for
these claims. Held, in an action for damages for wrongml refusal, that the plaintiff was entitled to a
renewal of his licences. Held, further, that when the Mining Commissioner definitely refuses to renew the
licences, it is unnecessary to tender powers of attorney, etc Held, further, that, when a proclaimed area
ut closed by proclamation or notice in the Staatscourant, the same means (t.e., proclamation or notice in the
JStcuUscourani) ought to be adopted when it is again thrown open to dig^rs. Van Diggelen vs. Leyda,
X.O., decided on the 13th April, 1895, coram De Korte, Jorissen, and Morice, J.J.

See all the remarks of Kotz^, C.J., on the last point in Cornfield vs. The Mining Commiasioner qf
Johanned)urg and F, J, BezuidenhotU, Jr. (Official Reports) I., 1, p.p. 135-136.

See also The Langtaagte Etitate O.M, Coy., Ltd,, vs. lite Oroitm RuJ Q,M, Coy,, Ltd,, referred to under
section 31 of this law.

In Julv, 1888, Braamfontein was proclaimed a public goldfields. In January, 1889, the plaintift
t)egged off certain claims there. In February, 1890, a portion of Braamfontem was closed by the
(Tovernment. In an action by the plaintiffs it was held that they were entitled to the money spent in
purchase of claims, as also to the licence monies ptaid. Money paid in exploiting the g^und, to mid out
whether it contained gold in payable quantities could not be claimed, as it was too vague and remote a
•claim. The value of certain buildings erected on the ground was allowed, but not the cost of erecting the
beacons, because the obligation to erect them was imposed by the law. Btrta Syndicate vs. Leyds, N,0.,
decided on the 30th of June, 1891, coram Kotz^, C.J. and De Korte and Jorissen, J.J. (unreported).

In the case of Boyne and Nightingale vs. The Spitzkop Gold Mining Company (C.L. J., VoL IV., p. 71$
decided on December 4, 1886), Coram Kots^, C.J., and De Korte and Jorissen, J. J., it was held that the
concessionaires of the sole right to dig for gold on a farm which had been deproclaimed were answerable
only for direct damage caused by the granting of the concession, and not for damage not directly
resulting from the granting of the concession, but from the withdrawal of the proclamation and the
refusal to issue licences.

See also the case of The Spitzkop Gold Mining Company vs. Stanley and Tate (decided in August, 1886|
and referred to in CJape L.J., Vol. IV., p. 72.).

Also the cases of GUhaxid aad Co, vs. Walker and others ; Cohen, Goldschmidt and Co. vs. Stanley air
Tate ; and Stanley vs. GoldschmicU and Co. in Appendix C.

In the case ofElqfys. Dr. Loyds, N.O. (decided by Kotz^, C.J., in Chambers, on the 29th Novem-
ber, 1895, (Off. Rep. Vol. 2, part 3), the applicant (ElofiQ alleged in his petition that a proclamation dated
the 5th of June, 1888, was published in the Staatscoitrant, of the 13th of June, 1888, by which a certain
portion of Braamfontein, in the district of Heidelberg, was thrown open to prospectors ; that on the ^&d
of July, 1895, a proclaimation was issued to the effect that the above-mentioned ground would be cloeed
from the 24th of August, 1895 ; that on the 16th of August, 1895, and therefore before the closing took
}>lace, he applied for licences to peg off certain claims on the said ground, and that the Mining CoooDm'
^ioner of Johannesburg refused to issue the licences, notwithstanding the fact that everything nece&mrj
had been done according to law ; that he (the applicant) thereupon pegged off the claims which, on bemg
surveyed, were found to be 90 in number. He therefore asked for an order to compel the Mining Com-
missioner to issue the licences.

The Mining Commissioner answered that on the 22nd of June, 1889, he received a telegram from the
State Secretary ordering him to issue no further licences on Braamfontein, and that on the Srd of Fd>-
ruary, 1890, notice was given in The Mining Argus that no further licences would be issued on the
said ground, and that, therefore, when the applicant pegged in August, 1895, the ground was not open
ground.

Kotz^, C. J., delivered the following judgment :

'* The Court is of opinion that a proclamation published in the Staatseourani can only be withdrawa
by a later proclamation (with a reservation of rights aiready acquired) unless the Law preacribee othv-
M'ise in any particular case. The instructions mm the Ciovemment and the notice published hy the
Mining Commissioner in The Mining Argus cannot therefore set aside the proclamation of 1888. The
later proclamation of the 22nd of July, 1895) first came into force on the 24th of August, 1896, theceCm

The Gold Law.

621

Ibefore the 24th of August, a person could make application for, and obtain prospecting licences, accord-
ing to law. The Mining Commissioner did not, therefore, act according to law. The applicant is
•entitled to prospecting licences for 90 claims. The Court must consider tne application and deal with
it nunc pro tunc. The Mining Commissioner is ordered to issue the licences, and applicant is entitled to
his costs."

Section 5. Exploitation of Claims under Licence,

63. Every white person of full a^, of the male sex, who submits to the laws of
4he land and produces (a) to the official charged with the issue of the licences referred
to in this Article, the receipt or the certificate that he has paid his personal tax
according to law for the current year, shall be entitled to twelve digger s licences to
•dig or to mine on a public field for precious metals or precious stones ; on one claim
for every licence obtainable on payment of twenty shillings per month p^r licence.
This licence of twenty shillings may, however, only be demanded for claims on which
machinery has already been erected, and is in working order ; or if, no matter where,
use is already made of machinery for the crushing of quartz coming from these
^aims. Where, in other cases, the Mining Commissioner orders the taking out of a
-digger's licence, only fifteen shillings per month need be paid for it. Every person as
above-mentioned, provided he complies with the same conditions, is also entitled to
obtain twelve prospecting licences, which shall give him the right to search on
Government ground, situated within the jurisdiction of the official who issues the
licences, and made available for prospecting by the Government, or on private ground,
in accoixiance with the provisions oi this law. For every licence to prospect on
private ground, five shillings per month must be paid, and on Government ground
two shillings and six pence per month, besides a stamp of Is. 6d. per claim for the
first month in every case of pegging off or taking out of claim licences.

A male married person may, besides those for himself, also peg off as many
claims as laid down in paragraph 4 of letter 6, Article 65, for his wife and children in
his own name, without power of attorney, provided that a certificate from the Field-
Cornet is produced showing that he is married, and actually has as many children as
he states in the certificate, which must be sworn to before the Field-Comet concerned
€3t a Justice of the Peace.

No advantaffe could he taken of an incorrect description in the licence, where there was clear proof
«f the identity of the claim, and the intention always existed to acquire the same, and to hold it under
under the Gold Law. Cohen vs. The Jo?iannesburg Pioneer 0,M, Company ^ decided on the 15th of Novem-
ber, 1889, coram Kotz^, C.J., and Esselen and De Korte, J.J. (unreported).

Prospecting licences were taken out to pee claims on the farm *' Elandsfontein, Simmer and Jack's
portion," and claims pegged in January or February, 1889, for the plaintiff's predecessor. The farm was
divided into two portions, the Simmer and Jack and the Geldenhuis. The peggers did not know exactly
-where the dividing line was. They pegged on the Geldenhuis portion. These claims were amalgamated
And licences were paid. In September, 1889, Ballott found out the mistake, and in November, 1889
pegged off the claims, knowing they belonged to the plaintiff. Held : — The Court will not allow a person
*who, knowing better and being fuUv acquainted with the circumstances, disturbs another in his occupa
tion or possession of claims, simply because there is an informality or wrong description in the licences:
ito take advantage of such informality or wrong description, where it appears that the person in posses
mou has acted bona fide. The claims was therefore adjudged to the plaintiff.

8, Syndicate vs. John BaUoU 0,M, Company, Ltd. ; decided on the 15th of January, 1891, cwom
Kotz^, C. J., and De Korte and Ameshoff, J. J., (unreported).

(a) The text is clearly wrong here. It reads " en aan den ambtenaar belast met de uitreiking van
de in dit artikel bedoelde licenties, en de kwitantie, etc." Tbe second en ou^ht not to be there. See the
remarks of Kot86. C. J., in the case of Kempin vs. Leyds, N,0.t and the Modderfomiein 0,M, Company ,
Tef«rred to under Article 15, with regard to the preposition " op."

See i^so the case of the PctaH Pretoria Q.M, Company vs. Donovan and Wolff, X.O,, in Appendix C.

Every whit
inalF person of
full a^e en-
titled to tvrelve
diggefB licen-
ces.

When 208. pay-
able.

When ISfl.

Twelve prospect-
inof licences.

6s. for prospect-
ing licence on
pnvate ground
and 28. 6d. on
Government
ground

Harried

mav peg off
r>|^ftnf in \^\§

own name for
wife and child-
ren on prodoc-
iiig certificate
from Fieldoor-
net or Justice
of the Peaoe.

622

The Gold Law.

Persons who
have pegsred
oB prospec*
tor^s claims be-
fore proclama-
tion shall be
entitled to re-
main in posses-
sion of them
after procla^
mation.

Pegging claims
by means of a
holder of pow-
er of attorney.

Male and female

rersons resid-
ng in the
ooontrj'.
Married women
to be assisted
by husbands.

Male persons of
full age must
produce pow*
er and certifi>
cate.

Power to be cer-
tified by Field-
comet.

Fieldoometmust
certify that the
bolder of the
power is en-
tered on his
U«t.

Powers for wife.

Verification o f
powers under
oath.

Not more than
twelve claims

maybep^nf^
under power
from one per*
•on.

Every male per-
•on of sixteen
years and u^v
wards can peg
twelve claims.

Unmarried f e -
male persons
of full »/ge^ and
widows may
pw off twelve
cUHms.

Persons who do
not pay per-
Bonal taxes
must produce
certificate that
their father,
guardian, or
husband has
paid his.

Certificate to be
produced by
persons who do
not pay taxes
and are not
assisted by
father, Jbc.

64. If under this law an area is declared a public diggings by proclamation, the
person, or the persons, who has or have peg^d off for themselves prospector's claims
on that area under prospecting licences, shall be entitled to remain in possession of
such claims, provided this law be complied with.

See Oa^f vs. The AfodderfonUin O.M, Company, Ltd,, and The Mining Commissioner of Bokdmrg
referred to under Article t^ of this law.

65. With regard to causing the pegging off, and thereafter the holding of digger's-
or prospector's claims, by means of a nolder of a power of attorney, the following
rules apply : —

(a) Male and female persons, residing within the country, may cause digger's or
prospector's claims to be pegged off, and thereafter held, by a holder of a
power of attorney, provided, in case they are married women, tb^ are
assisted by their husband.

Male persons of full age, acting for themselves or as husband, BhaU have
to produce, with their power of attorney, the receipt or the certificate
mentioned in Article 63.

(6) Every person who wishes to peg off or cause to be pegged off a claim or daims
under power of attorney, must have the said power of attorney certified by
the Field-Comet or Assistant Field-Comet of his ward, and must produce the
receipt for the tax paid for the current year.

This official must further certify that the holder of the power of attorney
is entered on his Field-Comet's list, is known to him as an inhabitant of his
ward, and is obedient to the laws of the land.

In case such a person also takes out powers of attorney for his wife, the
Field-Comet or Assistant Field-Comet must certify that the statements of
the holder are correct. Should he doubt the truth of the statements of the
holder of the powers of attorney, he can demand that the truth of the
powers of attorney should be confirmed under oath.

On no power of attorney from one person shall more than twelve diiiiis
be pegged off.

Every male child of sixteen years or more has the right to peg off, or
cause to be pegged off, twelve claims, provided the Field-Comet or Ampfff^iifc
Field-Comet of his ward certifies that he is entered on his field-Cometh
list, is known to him as a resident of his ward^ and obedient to the laws of
the land.

Unmarried female persons of full age and widows shall also have the
right to peg or cause to oe pegged off twelve claims. All persons mentiooed
in this article who do not pay any personal taxes under the laws of the hmi
shall have to produce a certificate that their father, guardian, or husband hit
paid his personal taxes for the current year. Persons mentioned in tUi
article who are not subject to personal taxes, and are also not assisted hj
father, guardian, or husband, shall have to produce a certificate to that dM
from their Field-Comet or Assistant Field-Comet for the purposes ^ iUi
article.

The Qold Law. 623

The Field-Comet or Assistant Field-Comet shall for the sififnine: of the ^^L **Ll!:iS
certificate and the inspection of his books attach a shiUing stamp on each oeituioate.
certificate, to be paid oy the holder of the power of attorney, whereof 6d.
shidi be returned to him monthly by the Government for each certificate.
The Field-Cornet or Assistant Field-Comet must keep a proper register of
the certificates issued, and shall render monthly to the official of his district
concerned a certified list with his account The Field-Comet or Assistant ^^'^'^^'
Field-Comet who renders incorrect statements or accounts, certified as tn^^dJ^^ '
correct and true, shall be punished with a fine of not less than £5, and no
more than £25, and in default with imprisonment not exceeding three
months, with dr without hard labour.

(c) Male persons of full age residing outside the country may cause to be pegged ^^^Si^*^^^
ofi*, and thereafter hold, one digger's or prospectmg claim, by means ^ a inffoutddethe
holder of a power of attorney, provided the power of attorney be notarially p^»3»uS^
drawn up and duly legalised, and this power of attorney, in addition to the S^wer.''**^'
ordinary stamp of Is. 6d. per claim, carry a stamp of this Republic of one ^*2[!^ ^^
poimd (£1) sterling. Mdimiia^

This stamp sliall have to be renewed yearly, and is valid for that yea^ ^ ^ fenewed
for every power of attorney used by the same person on any goldfield of this ^**^*
Republic.

The holder of the power of attorney can obtain a receipt or duplicate ^^^^^
receipt for the same from the official who cancelled the stamp on the first
power of attorney of that power given for that year.

No women or minors residing outside the country shall be able to cause ^STs" wiSNr
digger's or prospecting claims to be pegged off by a holder of a power of ^^'^ ***•
attorney. not pog daims

by meftoa of

An error in amalgamating, t.e. a bona fide mistake made with the advice of the Mining Commissioner
in amalgamating 36 claims in three blocks of 12 each, for which the same 12 names were used in each case,
wheceas there were really 36 powers of attorney, did not deprive the syndicate of its right.

Madeline Re^ Syndicate vs. Coetzee and others (C.L.J., Vol. V., p. 16; Official Reuorte, I. 1. pp. 134>
1S0), decided on the 13th January, 1888, coram Kote^, C.J., and Esselen and Jorissen, J.J.

If the powers of attorney by virtue of which a man obtains licences to peg off claims are false, the

' tioences are invalid, and the pegging gives no title. It was proved that the powers of attorney relied on
Inr the defendant Croft were not signM in the uresenoe of the witnesses, and that some had not been
signed by the alleged jprincipals at alL Held, tnat the licences granted to Croft were invalid, and ^lat he
had no title to the claims. The powers of attorney ought to be signed by the principals in the presence of
the witnesses, or the inrincipals ought to acknowledge their signatures to the witnesses. Niatl Coy, vs.
Croft and the Beatrice Syndicate, decided on the 12th of April, 1890, coram Esselen, De Korte» and Ameshoff,
J.J. (unreported).

•

Where, in pegging off claims, a certain number of them are pegged off under invalid powers of attorney,
^iiH a third person, hearing of this, pcM^ off afresh a number of such cUtims, equal to the number of the invahd
poirers, the Court will not grant such second pegger a rule nuti preventing the first p^K^r fnun alienating

'V&b ofehns peeged off'afresh, on which licence monies are being regularly paid by thelatter, pending an
action for oecnaration of rights, unless he can show that the cuiims thus pegged off again by him are t»«-
cisely those which were originally pegged off under the faulty powers. Sylvester vs. Jacobs (official

^'Bepcnts, I. 2. p.20), decided on the 26th of April, 1894, coram Amesnoff, J.

ArtiolM 68 to 6S

^_- , 66. Articles 63 to and including 65 shall not be applicable as regards powers of . ^^ 2TTuvui
Jprjdttomey to allnvial goldfields, where a person shall not oe able to peg off more than qS^^^SSo! in
^^iHtee claims in his own name. pe»oii*i owa

624 The Gold Law.

BifAit to pur- 67. Every licenced dig^t shall be entitled to hold under his licences on each

^^' proclaimed farm three alluvial claims and as many reef claims as provided in Articles

63, 64 and 65 of this law. He shall also be at liberty to purchase a number of claims

from other licensed claiipholders : he shall in that case have to hold a digger's liooooe

Diffffer't and for cach claim, uulcss the Mining Commissioner considers a prospecting licence

JSST*^ "' sufficient for the time being.
When loint When the joiut daimholders of an amalgamated block have had their respective
dT'^^!^ shares registered for the purpose of this article with the Mining Commissioner or
**** ^M^n responsible clerk concerned on pajrment of five pounds (£6) sterling, each one of them
SuSmMch. shaAl be allowed to peg off afresh one claim or to give a power of attorney afresh for
that purpose.

The same power of attorney may be used only once and shall be returned oo

issuing the licences to the licence holder, after cancellation of the stamps^ noting the

number of first licence granted thereon, as also the number of the register of

registration, and noting on the power of attorney that it may not be used for any

other claim.

Diioovenr of To the discoverer of payable gold reefs on and in proclaimed public diggings and

nlS^on pr^ on prospectiug fields twelve claims shall be awarded without powers of attorney over

^jftimed diig and abovc the twelve claims allowed him in subsection 6 of Article 65, but subject to

to twelve an impost of 6s. 6d. per claim for the first month and after that the ordinary licence.

Dj^o^'uotnce- q^^i'^z rccf gold is also found and worked, a double amount of licence money shall be
money for paid for such a claim.

dftim oontaiii* ^

mm^^IS!^ 69. The registration of one or more searcher's (prospector's) claims shall be
!!iAigoid. ^ effected by a Mining Commissioner when the discovered precious metal or predooi
^"^iieAToher^ stoue-bearing ground is situated within the boundaries of his field, or otherwise bj
^^Jd*** b^ Landdrost of the district wherein the said ground is situated.

mMoner^o'r 70. Diggers or prospectors, being holders of adjoining claims to' the number d

AmtA^imtion ^^^ more Uiau twelve, who wish to amalgamate their cbims, may camie the Bui

ofciiSlmt. claims to be registered as ami^gamated, with all the water-rights belongii^ to voA

claims, on apphcation at the o£^ of the Mining Commissioner or responsible dotk

concerned.

Shan of eecb On registration the share of each digger or prospector must be dearly aoJ

SSSibed? ^ distinctly described.

On the granting of the certificate of such amalgamation, under a stamp of two

pounds (£2) sterling, the holders of the amalgamated claims shall enjoy tae ami

privileges as per regulations thereanent on the fields where they are situated.

AmaigemAtion The amalgamation of claims does not lapse through licences being changed.

thiourii lioen- See the case of the Madeline If etf Syndicate vb. Coetue and OtherB^ referred to nnder Article tfL

o^lSiged! °' 71. Every application for a "mijnpacht," ri^ht to lead water, proteete
^^Si oV^or amalgamation of claims, and other similar applications, must bear a stamp of tti
Dijni»cfat,te. value of five shillinga

72. Pegging off claims between sunset and sunrise is forbidden, as also pcgguV
off on Sundays and Christian holidays recognised by law.

PeggiBgbetwMn Pegging ^^ ^^ B^c^ forbidden times shall be considered illegal, shall not b
•oniieta^ recoguised and shall give no rights whatever.

Sandayi. ao!° ^^ j)laintiff allegMl ^that the defend&nt^peg^ed^ off certain ^okims between eniMt and lonrii^ i^i

The Gold Law. 625

73. Every owner of a reef claiTn, or of an amalgamated block of reef claims, or Diagram or
of a digger's claim or block of claims shall be obliged to deposit with the Mining Jauon' 1?f
Commissioner, Responsible Clerk or Landdrost concerned, within one month after d*^*^ .Jj

the date of the first licence, a surveyor's diagram, or if there be no surveyor, a M£in«r (^m-
sketch plan of the situation of the claims or blocks, and signed by the person who ^thln^^"^'

one

made tne survey. Such claims may not be transferred without a proper land ^^^^
surveyor's diagram. For alluvial digger's claims it shall be sufficient to deposit aTrancier ot
sketch plan only so long as they are not transferred, in which case a surveyor's SJ^ ^Te
diagram is obligatory. The stipulations of the foregoing paragraph shall not be J^^or't* du^
Applicable to the unhealthy ffold localitiea snm.*

^^ . Sketch •uffldent

74. Every holder of a reef claim or an amalgamated block of reef claims under J|^***"T*^
digger's licence shall be obliged within six months after the date of the first licence to traniforred.^
to deposit with the Mining Commissioner, Responsible Clerk or Landdrost concerned ^' .^[^
approved surveyor's diagrams in triplicate of a survey of his ground, made by a commiiiS^
45urveyor, and compiled on such a scale as shall be fixed by the Surveyor-General. ^jLSir'™^

Such survey must show all works, buildings, tramlines, roads, footpaths, machine digger's ^^^
stands and the local conditions of the ground, and must be connecteKl by trigono- juSSSn of tuch
metrical or other survey with such fixed points or permanent beacons of another (UAflmns.
survey as the Surveyor-Qeneral shall determine, or in such other way as the
Surveyor-Qeneral shaal deem sufficient to define the place accurately. These
diagrams shall be examined and approved at the office of the Surveyor-General. The Am>rovai ot by
£urveyorXJeneral shall, before the diagrams are signed by him, make known by a "^•yo»-^»-
jiotice in the StamtworwaTU that these diagrams have been sent in and that they will ^^^^ <^
be signed by him if within the time of one month from the date of publication no
protest is lodged against the sama

When a protest is lodged the same must be proceeded with within the period of Protest agatntt
one month, failing which the diagram shall be signed by the Surveyor-General just as
^ough no protest had come in against the same.

Kegarding diagrams already approved under this article and hereafter to be
4ipproved, the same regulations regarcung legality and cancellation of faulty diagrams
.shall apply as enacted in Article 109. Before a surveyor may survey claims or
^Bffound, the beacons thereof must be shown by the owner or his representative with
the claim inspector of the respective fielda

The defendant syndicate sent in a diagram of claims to the Surveyor-General for his approval in
accordance with the Gold Law. The plaintiff syndicate filed a protest, alleging that the said diagram
■comprised more than the defendant was entitled to in that it incladed sixteen cuiims belonging to it (the

n* 'ntiff ). Held, that the plaintiff had not succeeding in maldne good its protest, and that the defendant
a better title to the said claims inasmuch as it had pegged tne claims in February, 1892, while the
T^ntiff had pegged only in July, 1892. Chums Syndicate vs. The Rand Exphring SjfndicaU (G.L.J.
voL XUL 8. 165), decided on the vth February, 1896, coram De Korte and Ameshoff, tf. J.

In an action for renewal of licenses for certain claims, the defendants excepted to the summons on the
crround that the diagram attached to it was vague, and did not indicate the exact position of the claims.
Tt was held that it was aot necessary to attach a diagram to the summons at all, but even if it wore
necessary, the diagram attached was sufficiently clear. Doyle vs. Leyds, N. 0. and the Rand Explorina
Svndirate and Nonpariel Syndicate vs. Leyds, if. 0. and the Rand Exploring Syndicate^ decided on the 6th
«of August, 1805, coram Kotz^, C. J. and Jorissen, J. (unreported).

75. The provision of Article 74 shall also apply with respect to diggers' claims Art.74iiuai ».
pegjjed off hefore the taking effect of this provision, and for these claims the period cSim*pSkS
lor sending in the diagrams shall be six montlis after the taking effect thereol ^^ ^th£

76. The period' for sending in the diagram referred to in Article 74 may for well- gl^^niioii of
founded reasons be extended by the Head of the Mining Department. time for Mod-

77. When a person has more ground than he holds a licence for, anyone provided lu- pegging of
•with the {>iiQf>er aomber of licences shall be at liberty to peg off afresh within the •«n>i««««wiiid

626 The Gold Law.

pegs or beacons of that person, the excess number of claims pegsed off, with this
understanding, however, that such newly pegged out claims must he toother and on
one of the sides of the block or portion of ground, but in no case on worked places or
to the obstruction of the other claim holder.
Notices to be The second pegger is obliged, within 24 hours of such pegging off, to give written
p^rtoMin- notice thereof to the Mining Commissioner or BespNonsible Clerk of the field oon-
^er^n4°to cemcd, as well as to the holder or holders of the claims, and he must further, within
holder ot 14 days thereafter, send in to the official concerned a surveyor's diagram of the whole
^'^^^^^ block of claims, showing not only the claims pegged off by him, but also the ejcact

situation of the other claim holder, after which the Mining Commissioner may grant
AppeaifromMin- the excess of grouud pegged to the re-pegger. From the decision of the Minii^ Uom-
dmie/toHeld uiissioner, appeal may be entered withm 14 days after judgment, to the Hcaq of the
**'iSS[ ^^ Mining Department, whose decision shall be final.
Penlity for re- Shoulcl it appear that the second pegger has pegged out within the beacons and

Ifu ^d*** pegs of the holder of the claims, without these being open ground, then shall the
second pegger be punished with a money fine of £100 to £500, or in default, with
imprisonment according to Article 8.

^el^rS!!!gTcm!!Si ^^- Survcyors, who are engaged in smrveying claims, shall have the ric^ht to enter
beionfcintr to for that purposc on another's ground, after giving notice to those entitled to sudi
**^*"" ground or their representatives, if they are on such ground, and to place there the

necessary instruments, flags, ete., for the survey.

Penalty for ob- Evcryonc who prcvcuts them or obstructs them therein, or puts difficulties in the
■**^*^' way of the operations for the survey, shall be punished with a fine not exceeding £25.

Surveyors n^rt 79. All survcyors shall be obliged to supply the Head of the Mining Department^
iJSK^ D « • through the Surveyor-General, with a copy of all diagrams which they have framed
SJiS*oi^for Companies, Syndicates, or private persons, in so far as they refer to public
g»nM. diggings.

^*£SSiti*' £«.- ^^' ^^} ^^ ^^^ ^^^^ ^^^ comply with the depositing of diagrams and sketches
ffSmL °^ prescribed in Articles 73, 74, and 75 within the time fixed shall be punished with i
fine not exceeding £15.

When renewal of (2) If this fine bc uot paid withiu the time fixed for the purpose, the renewal of
ucence poet- ^j^^ Hcencc shall be postponed until the fine shall be paid.

nxing time for (3) In the sentence a time may be fixed within which the deposit shall have to
^spo^*- be made.

Extent of alia- gi An alluvial claim for digging for precious metals shall be in extent 150 17
aims. jgQ £^^^^ ^^^ ^j^^^ ^ beaconed ofi* with clearly visible pegs and trenches at rigU
angles in the direction of the sides.
Extent of claim A claim f or digging for precious stones shall be in extent 30 by 30 feet square.

p^1^^« A quartz reef claim shall be in length 150 feet (le., in the direction of " the recO
Kxtento^quaru gjid 400 fcct iu breadth, in such a way that each claim, if possible, forms a reetaiigfa^

the breadth to be taken on one or both sides of the reef, as desired.
Two central pegs In rcspect of a quartz reef claim two central pegs shall be sufficient pegs for (b

first seven days,
comerpmafter After the expiratiou of that time, four comer negs shall have to be snbstitQtel

seven ys. ^^ ^ ^j^^ direction indicated by beacons as prescribed by law.
Comer pegs for I^ ^^^ <^^^^ oi quartz reef blocks of amalgamated claims four comer pegs shall b
Miaigamated sufficient for each block, but the names of the respective daimholdeis in the Hoi
must be le^blv marked on each peg, with the date of amalgamation.
Permission to Nobooy shall have the right to fence in his claim or " mijnpacht ** "without ^
leiiosinoUinspPQylQ^;^^ Written couseut of the Head of the Mining Department, who diall dsetf

The Gold Law. 627

ber consultation with the Government, and in no case shall a larger portion of the
ound be fenced in than is necessary to protect the works, and to guard against
Btractions and trouble with the workmen.

The use of barbed wire for fences or for other purposes is forbidden on pro- ^JSten!*" ^^
dmed or prospecting fields, as also on grounds surround^ by public diggings.

All fences made or to be made without permission as aforesaid shall be removed ^^^T^ ^
' those entitled to the ground thus fenced in, and in default of this the Government ^JJ^* ^^
all cause the same to be removed at their expense. Contraventions of this article
all be punished with a fine not exceeding £25, or, on default of payment, with im-
isonment according to Article 8 of this law.

See the case of the Beniman SyndkaU vs. Simprnm in Appendix C.

82, The comer pees or beacons of a claim shall be not less than three feet above _, , . . , ^

e ground. pegs.

These comer pegs or beacons shall be not less than three inches in diameter.

Where the nature of the ground permits, at each peg or beacon two trenches Trenches for
1st be dug, which shall form a right angle at the peg or beacon, three feet long, °***°*^
If-a-foot wide, and one foot deep, which trenches must indicate the direction of the
nndaries ; moreover, the sides of a claim or amalgamated block of claims shall be
Dwn in a clear manner by trenches or piles of stones at least one half -foot high and
ree feet long, and boundary beacons placed at distinct mutually visible distances,
other marka

When there is a surveyor's diagram of claims, or of amalgamated blocks of
ims, it shall be sufiScient to erect the comer beacons, and to dig the furrows round
3 claima

All claims and amalgamated blocks of claims must have on each comer beacon a i^otioe boud on
ftrd at least nine inches square, on which shall be clearly and legibly written, conierpeg*
inted, or painted, the official number to be given by the Claim Inspector, the names
the mining property and the claimholder or the claimholders, the date of the
ence and the date of the pegging ofil

When the Claim Inspector finds that any of the provisions in this Article have not NoncomDUaiioo
Bn complied with, he shall have the right to inflict a fine therefor of at least two jS^nT^^
illings and sixpence and at the highest five shillings per claim. He shall ^ve notice i>at7 of oudm*
sreof to the owner or his representative and he shall at the same time mform the infl?«'*«-
ning Commissioner thereof.

The person fined has the right to appeal within eight days to the Special Land- Appeal.
>st, should there be one, or otherwise to the Mining Commissioner ; if after expiration
this period fixed for the appeal, no appeal has been noted and the fine has not been
id at the office of the Mining Commissioner and the beacons not brought into order,
3 Mining Commissioner shall issue no further licence for the claims in respect of saqwDsion of
lich the law has been contravened, till such time as the fine shall have been paid and ***^**-
d beacons brought into order. Article 86 shall apply in this case.

83. When on a public field a digger wishes to abandon his claim or claims in order Abandonmenioi
peg off for himself a new claim or claims, he shall have the rij^ht to do so provided *****'°^

t pulls out the pegs of the claims which he wishes to abandon, and puts up a notice
r a week on the gtound to the effect that it has been abandoned, and also ^ves notice
the same effect to the Mining Commissioner or responsible clerk, in defamt of which ^••^^ «*•****•
) shall be liable to a line not exceeding £10 or imprisonment for from fourteen days
' three months, with or without hard bbour.

628 The Gold Law.

^^b»ndi*n«d ^^ receipt of such notice the Mining Commissioner or respopsible derk shaltcauae'
oiaixDsbjrMin- such claim or claims to be sold by public auction in accordance with Article 86.

ing Oominifl- __

sioner. ^ He may, before ^ving out such claims, first institute an inouiry, and shall bO'

^onedcii£& ' entitled to refuse to give out such claims and to cause them to be sold by auction for
the benefit of the State.

^'^{^^I^^^ The renewal of a i>rospecting or diner's licence shall be refused by the Mining

oniof^ bo Commissioner or responsible clerk when claims have been pegged off on places where

refoBed. accordin^ to Articles 117 and 15 of this Law it is forbidden to search or to di^, and on

places which in the opinion of the Mining Commissioner or responsible clerk are ia

indisputable lawful possession of others.

See the cases of the WitwcUersrand O.M. Coy. vs. Young, Kempin vs. The Mining Commianoner ofBok^'
hwrg and The Modderfontein O.M, Go. and NicoUs vs. Leydn N.O., referred to under Article 15w

See also the case of Ginsberg vs. The Gauf Syndicate and the Mining Commis8ioner of Bobi*mrg In.
Appendix C.

When damages are claimed on the ground of the refusal to issue licences for ceded daimB, the deed d
cession must be attached to the summons. Chumleigh Syndicate vs. The State and Rand Exploring SyndieaU
(Official Reports I., 1, p. 45), decided on the 2nd of February, 1894, Coram Kotz^, C. J. and Azneahoff and
Morice, J. J.

^dStomiirt nS ^*- ^^ holder of a reef claim situated higher up shall have the right to allow the
be » nutaMMse d^ris from his claim to be a nuisance to another or to obstruct him who is working

to other dig- * , ^

gen. lower down.

storage Stftiide . , ,

(bewaarpi»at- Jn case holders of claims require ground for depositing tailings or other d^bna
"*° from the batteries, for placing sumps or pans, dams instead of pans or reservoirs, or for

storing quartz, such ground may be given to them on their own claims, after written
application has been made therefor by the Claim Inspector and a surveyor's diagram
has been handed in at the office of the Mining Commissioner or responsiole derk con-
cerned, which officials may grant this application if there are no weQ-founded
objections thereto. For this no extra licence need be paid. This provision shall not
apply to those storage stands which have already been given out under licencea
at 28. 6d.
piMw In tripii- rpj^^ regulations laid down in Article 102 with regard to the non-payment within
the proper time of the licences on specially registered claims are also applicable to ttuft
Article. Applicants must, within a month after award, hand in plans in triplicate to
the said officials, framed as indicated in Article 73 of this Law.

sioner decides 85. On proclaimed fields the Mining Commissioner may determine where prospect-
pMting ^lic^n. iug Can be carried on under prospecting licences, and also determine on which plaoe»
di^g^ ^ora^ digger's licences must be taken out.

M^g^o^^s- The Mining Commissioner shall have the right, if application be made therefor,
righttochuige to change the digger's licences, under which claims are neld, to prospecting licences^
OM *to ^m- fl-f^r <lu® investigation, and after having received the report of the claim inspector
pecting iiora- there€ment

oes.

^Sinw^"^?-" On finding that anyone is holding ground under prospecting licence, and is not
ora«**to *^' prop^^ly working the same to the satisfaction of the Mining Commissioner, with the
taken out in- objcct of finding precious metals or precious stones, the Mining Commissioner shall
!!^n^i(S^ have the right to order him to take out a digger's licence.

Working of one

^aiiu is suffl- The Mining Commissioner shall in this matter have to take into consideratioa
Ezo^t where that wheu claims have been amalgamated, the working of one of the thus aouJ-
^uriy ^beid gamated claims at a time must be considered as sufficient, which regulation, however,
unjtef^diggert ^g^w j^q^ \yQ applicable to claims which were previously held under digger's licttieeL

The Gold Law. 629

The licence holders may, in case they are dissatisfied wi£h such decision of the Ameax to the
Mining Commissioner, appeal within thirty days to the Government, through the head <>^«™«"«°
of the Mining Department, after which the Government shall finally decide on the
Istter's report Every Landdrost may, except on the proclaimed fields and the
prospecting fields where a Mining Commissioner has been appointed or assigned, issue when Landdrost
prospecting licences within the boundaries of his district. ^^^^"^ifcra^

See the case of the Henry Noutm Quid Mining Coy. vs. Ekmd in Appendix C.

86. If a digger's or prospecting licence expires without being renewed on or when c^»^*
before the day of expiry, the claim for which the licence was issued may not be eiSment.
pc^ed off by another person, but lapses to the Government, and such claims shall be
dealt with as follows : —

•

During three months after such day of expiration the former holder of such Former holder
CJdints shalT be entitled to recover his rights on these claims by taking out new n^hte ^^
licences therefor, on payment of extra licence monies equal to the amounts of the ***"** months
firrear licence monies. If, however, the new licence be taken out by the f^"^®^ "ne^^S^tiJJ,'
daimholder within fourteen days after the day of expiration, only the licence monies fourteen dayi.
for these days need be paid. After the expiration of the said term of three monohs, ^"""^^J^^'
th^ head of the Mining Department must sell or cause these claims to be sold by "** ™**°
public auction. The head of the Mining Department shall, however, be obliged, before BertoraUon of
such sale takes place, to give back the claims concerned to the original holders Lietoorigiud
thereof, if no further questions exist, on the additional payment of all arrear licence S^ntoSartSS
monies, besides the expenses incurred therewith. •"^ expenses

If the claims are not sold by public auction, the head of the Mining Department if not sold with-
shall be obliged to declare 30 days after date of the sale such claims open ground, lSte?u^"S
when the ground may be pegged off by the public. Of such public sale a notice shall ^^^^'^^J'
be published in the ^taatscov/rant at least 14 days previously. «»ey m*y he

These regulations shall be applicable to all claims which have lapsed at the time ^n^^
of the taking effect of this law.

On the 2nd of September, 1887. the plaintiff pegged off certain claims. In October, 1887, these claims
lapsed to the Government. On the 14th of January, 1890, the plaintiff bought the claims from the
Government under Article 615 of Law 10 of 1887. Between October, 1887, and January, 1890, the
defendants p^ged off the claims and got their licences renewed from time to time. Held (per De Korte,
Ameshoff and Jorissen, J.J.) that the Government was not bound to seU the claims, but could allow them
to be re-pegged as open ground ; that therefore the defendant's tiUe was better than the plaintiff's, the
defendant's pegging being prior to the plaintiff's purchase. Edwards vs. The Britannia Coy., decided on
the Ist of September, 18^ (unreported).

N.B. Article 616 of Law 10 of 1887 is spoken of, but it is really Article 37 of Law 10 of 1887, which
modifies Law 8 of 1885 by the insertion of Articles 61a and 616 between Articles 61 and 62.

In the case of Doyle and others vs. Leyda, N.O., and The Rand Exploring Syndicate (C.L.J. Vol. XIII.,
p. 157) decided on March 19th, 1896.

Ameshoff, J., with whom Jorissen, J. concurred, said " Article 25 of Law 9 of 1888 is imperativ It
compels the Government to sell claims in such a way as it pleases it is true, when the licences paid for the
same have lapsed without being renewed." Now Article i5 of Law 9 of 1888 is the article which modifies
in some unimportant details Article 616, as laid down by Article 37 of Law 10 of 1887, referred to above.
The remarks, therefore, of Ameshoff, J. in Doyle*8 case are hardly consistent with the judgment in the
case of Edicarda vs. the Britannia Coy., abovementioned.

The plaintiffs alleged that thev pegged off certain four claims on the 22nd of June, 1889, that the
licences were renewed on the 22na of July, but that renewal was wrongfully refused on the 22nd of
August, though licence monies had been properly tendered. The second defendant alleged that the
ground in cj[ueetion was pegged by one Gebhardt on behalf of Schweizer in June, 1889, before the pegging
of the plaintiflb took place ; that subsequently Schweizer obtained the right to lay out fdl the ground

which he held as claims, including the ground in dispute, as a township, and that it (t.e., the second
defendant) obtained all Schweizer's rights by cession. The second defendant further alleged that tJie plain-
tifb had abandoned their claim to the claims, and that they were •stopped by their long silence of four or
five years from asserting any claim to the ground. Held, by the majority of the Court (Morice J. diss.),
that the plaintiffs must succeed*

630 The Gold Law.

That the plaintifib pegged on open ground in Jane, 1889, and that the renewal of the Hcenoea was
wrongfully refused hy tne Mining Commissioner in August.

That as the Mining Commissioner renewed the licences in July and refused the renewal in August^
the onus of proving the legality of the refusal lay on him, and that in this heliad failed.

That no animus relinqtiendi on the part of the j^aintifib had been proved and that they were not
estopped from asserting their claim. The cases of Walker vs. Levds, 3r.O., cmcf the Rand Bxplarin§
SyndtcaU and Judd vs. Ltyda, N.O. and the Rand ExUoring i^fuiioate were distingroished. Held (per
Morice, J. diss.), that the defendants ought to succeed. That when a person, who lays claim to claims,
for a long period of years neither tenders licence monies nor takes lesal steps, and when oUiers are thereby
prejudiced, the presumption is that such, person has abandoned nis ri^ht to the claims. That this

S resumption arises in this case and has not oeen rebutted. Dfn^ and others vs. Leyds, N.O., €utd tk€
^and Exploring SyndieaU (C.L.J., VoL XIII., p. 157), decided on the 19th March, 1896, coram AmiwhoU
Jorissen and Morice, J.J.

See also the case of Sch%Dtizer*s Claimholdtrs Rights SyndieaU vs. Rand Exploring Syndicate in Appendix

With reference to the lapsing of claims to Government on non-payment of licence monies the case of
Modman and Coetzee vs. Schafft and Drury (decided on the 2nd of March, 1887, coram Kotx^, C.J., and
Esselen, J. ; see C.L.J., Vol. V., p. 13) is of historical interest. It was there decided that under the Qold
Law of 1885 the rieht to a claim lapsed on the expiry of the licence through non-payment of the licence
monies, and that the ground on wluch the clsim nad subsisted could be pegged off as a claim by a third
party. The law was, nowever, altered by a Volksraad Besluit, followed by Article 616 of the Gold Law, as
amended by Law 10 of 1887, Article 37, which distinctly says that lapsed claims may not be pegged off
again by a third party.

See also the case of Underwood vs. Bamaio Bros, and the Mining Commissioner of Bohbttrg in
Appendix C.

Proteotion for 87. He who is on commando or has personally responded to a call to Tnaintain

okimli during Order and peace shall ipso facto have protection for his claim or claims (whether reef

**'™"******®- or alluvial) during the time that he is on commando or such special service, and, in

the case of commando, also for thirty days after his release from such commando,

without its being necessary for such protection to be especially granted, provided he

Notioe. gives notice of such call to the Mining Commissioner concerned.

^?M uTS " m' During the time of this protection no licence monies on the claims need be paid.
Exemption from 88. Provisional exemption from the payment of claim licence monies (whether
cuSJ*^5wnc« reef or alluvial) may be granted in case of sickness or owing to the onhealthiness of
hii^neL"of ^^^ district, provided that work be done on such claims betore and at the time of the
(iitriot application for protection, such as in the opinion of the Mining Commissioner may be
considered sufficient to justify the wanting of exemption. Every such case of exemp-
tion shall be sent as soon as possible by the Mining Commissioners, with a full repc^
to the Head of the Mining Department, for final approval or rejection by the Govern-
ment, who may grant or refuse confirmation of the exemption.

DumUon. The duration of the time of exemption shall be fixed according to the nature of

each case, while nothing shall be charged for granting the same.

ouinubeionffing 89. Claims belonging to the estate of a deceased person shall not lapse unless the
MM^ peno^ executor fails to comply with the provisions of the law for thirty days after receipt of
his appointment or the confirmation thereof by the Orphan Master.

AMeuofthees- On further regular compliance with the provisions of the law such claims shall
^^^ be considered as assets of the estate, and as such be dealt with according to the provi-

sions of the Orphan Law.

Uoence holder 90. The possessiou of a Hccncc for a claim does not include the right of disposinf
oTeurftlorof ^^ ^^^ surface of the ground, which right of disposal the Government reserves for
ffnmnd. itself for the purpose of defining roads and other works, etc., without, however,
obstructing the working of the claim.

^e"** rodSl^ 91. Any person who digs fo^ gold, precious stones, according to Article 2 of thM
on demand, law, be it On his owu, be it on another's account, must, if such is desired by an officiil

The Gold Law. 631

^qualified thereto by the law or the Government, produce his licence, in default whereof
he shall be punished with a fine of £1 to £3, and in default of payment with impri-
sonment not exceeding fourteen days.

92. Every licenced digger or prospector shall be entitled to have a stand on his ^*^^gj^**5?*a
•claims for his dwelling, for which stand he need pay no licence. stand for hit

^^ -m 1 1 . 1 , . 1 1 IT dwelling. No

93. Elach white person who desires to erect a store, or houses, or dwelling on a licenoeDayabi*
proclaimed or prospecting field shall make application to the Mining Commissioner for on proctokaS
one or more stand licences, Where five stands are already given out next or near **^*
•each other, the Mining Commissioner shall not have the right to give out stands

within a distance of 300 yarda

Each licence shall five the right to a piece of ground 50 by 50 feet in a locality
appi'oved of by the Mining Commissioner, but not so as to interfere with mining
-operations on a locality known to contain precious metals or precious stones.

The Head of the Mimng Department, in conjunction with the Government, shall,
bowever, have the right to give out under a licence stands of greater dimensions
where he considers such necessary.

Such stand licence, whether monthly or yearly at the option of the applicant Renewal.
must be renewed either monthly or yearly.

The price for a stand licence on proclaimed ground of 50 by 50 feet shall be 7s. 6d. prioe of stand \u
T>er month. ^JSrJSSk

When the payment of stand licences on proclaimed ground is three months in Notice of upM

Arrear, the Mining Commissioner shall demand payment thereof in the StacUscov/rant Sitw^^^thVee

and in a local paper, if one exists. If one month after publication of the demand, ™<*"*^^"^ "*^*

•compliance therewith is not made, the Head of the Mining Department shall have the LapM^of stand

right to declare such stands lapsed. mon£°^after

The price of a stand licence on approved stand townships on Qovemment ground price of stand u*
ahall be : For stands of 50 by 50 feet, 7s. 6d. ; and for stands 50 by 100 feet, 11a 3d. 2?i^iS*oS?.'

per month. e r n m e n t

In case a stand licence is not renewed at the proper time, the holder of the stand ^\^^* ^^.
licence shall have the right within a period of three months thereafter, to get his er of stand u-
stand back under a new licence on the additional payment of all arrear licence monies to"Te?over
and as a fine a sum of money equal to the arrear ucsnce moniea thwemoo^

See the case of Curtis N,0, vs. The Mining Commissioner of Johannesburg and the Johannesburg Town-
'Mp Co. in Appendix G.

94. Where on private proclaimed farms stands adjoining each other are given out when stands
under licence, so that they together in the opinion of the Qovemment form a town, '**"" • '**^-
it shall have the right to impose a special tax of two shillings and sixpence per month

per stand. The payment thereof shall take place at the same time as tnat of the
monies due for stand licences, on which the receipt thereof must be noted.

If this tax on a stand is in arrear, the renewal of the licences may be refused for when renewal ot
that stand. ^SST^^

95. Transfer and registration of portions of stands may take place provided an Transfer of pol^
approved surveyor's diagram of such portion be deposited in the office, where the t^^"*®'"***™^
registration must take place. Such a portion of a stand shall be considered and
registered as a separate stand, for which a separate stand licence shall be due as

fouows : For portions of stands 50 by 50 feet, 28. fid. per month ; and for portions of
istands of 50 by 100 feet, 3& 9d. per month. On such a portion of a stand tne full tax
•of 2s. 6d., mentioned ia Article 94, must be paid.

632 The Gold Law.

*toIlSfOTo?po^r' Registration of transfer of portions of claims may take place, provided aik
tioMofcUimBapj)rovM surveyor's diagram of such a portion is deposited in the office where the*
^* registration is to take place. Such a portion of a daim shall be regarded and
registered as a separate claim.

B«riit»don of 96. The registration of transfer of claims and stands and portions of claims and
ourm/'and portions of stajids shall take place at the office of the Mining Commissioner or
ofli^ of' Min* '^'^sp^^s^ We Clerk concerned, while the M
bv commfai. Law No. 6, 1882.

■i<mer. '

same stamp dues shall be levied as in terms of

sumodueB. 97. The company or the person who imports machinery for the purpose of*

^uinabto "^ working one or more claims shall, over and above his ordinary stand, have the right
ma^ «SlSd ^ acqiiire stands in extent 150 feet sq[uare on his claims (free of cost) and on a locauty
notoonuinin^r which is uot kuown to coutaiu precious metals or precious stones under licence at
^ &o.,°*on 2& 6d. per month, for the purpose of erecting the machinery on, where, that is to say».
C?^"* pe J this is practicable without encroaching on the rights of othera
oSS^ penon 98. No colourcd pcrsou may be a licence-holder or in any way be connected with
SL°hoidlr."* *'^® working of the diggings, except as a workman in the service of whites.

Section 6. Special Registration.

^^SoSnof^fiSl" ^^' ^^^^ digger's claim or each amalgamated block of digger's claims may be-
^ ' specially registeiid in the manner hereunder set forth.

Appik»tion tor 100. Persous who desire to have their claim or block of claims specially

SftSon. registered must make application therefor to the Mining Commissioner concerned, as-
far as possible in the form hereafter prescribed.

^'*™"' This application must be stamped as provided by Article 71, and must be

accompanied by a diagram framed by an admitted surveyor. The application with

'"SfS^th."' t^^ diagram shall lie for the inspection of the public for one month at the office of the
Mining Commissioner.

D^^ hearing The Mining Commissioner shall thereupon issue a notice to the applicant, as far
possible in the form hereafter prescribed, wherein day and the date of hearing shall
be fixed (between the date of publication of notice and the date of hearing there must
be a period of at least one month.)

PnbUcation of This uotice shall be published once in the Staatscov/rant, and twice in a local

■°**** newspaper, should there be one.

Where no obiec- If bcf orc the Said hearing no notice of objection has been given to the Mining-

tiSS'giSt^" Commissioner and the applicant, and for the rest the law has been complied with, the

Mining Commissioner may grant the application, and the special registration shall

stamp. then take place as is further set forth herein. A notice of objection shall bear a

stamp of five shillings, according to Article 71. When before the said hearing such a

^*mJde^*^"°" notice of objection shall be received by the Mining Commissioner the specif regis-
tration shall for the time being not be granted.

^ISiwfthi^n Within ten days after the notice of objection the person who objects must take
dAjs of notice legal procccdiugs a^nst the applicant to have his objection declared valid. This-
of objection, declaration of validity may be sought by application. The official charged with the

^tociwTTSi civil jurisdiction on the field shall have jurisdiction herein, and he shall give such aa
iidiction shall Order regarding the special registration as he shall deem necessary.

SMdai n«i«tra- ^^ ^^® application for special registration of a claim or claims is granted, sock
tion in eepor- registration shall be effected in a separate register to be opened for the purpose, tk^
ate regiiter. j^^.^^ ^£ ^y^|^ gj^j y^ prcscribcd by the head of the Mining Department

The Gold Law. 633

A certificate of such special registration shall be issued as far as possible o^^*^ oj
according to the form hereafter prescribed. tntion.

This certificate shall bear a stamp of a value calculated at the rate of ten stamp.
shillings per claim.

No certificate shall be issued unless all monies due on the claim or claims have
been paid.

101. The Mining Commissioner shall not be permitted to allow specially registered ^^^^^^ cE^
claims, on which a bond has been passed, to revert so as to be held under prospecting **^^j^h[Sj

licences. under oroe-

102. Article 86 is not applicable to specially registered claims. ces.

When the payment of digger's licences for such claims is six months or more in |^*|}^%«^
arrear the Mining Commissioner shall demand payment thereof in the Staatscov/rant, tend oiaimfl.
and, if considerea desirable by the Government, also in a local newspaper. ^/*di£?s^'

oenc68 on spec*

The Mining Commissioner shall be obliged to make this demand immediately ^^^f^^^x
after the expiration of the said six months and at the same time to give written months in ar-
notice thereoi to the bondholders per registered letter. Demand.

K within three months after the date of publication of the demand the payment "Jf^P^yjuSf
of all monies due has not followed, the claim or claims may be publicly sold by the mmths after
Government in such a way as shall be decided upon by it. datoeoiS.***

The date of sale shall be published in the Staatacov/rant, and, if deemed advisable PubUcation ot
by the Government, also in a local newspaper, at least fourteen days beforehand. dateoieaie.

Out of the proceeds all monies due to the Government shall first of all be paid.
In such monies shall be reckoned an amount of £2 10s. per claim as a fine and for
costa If the claims realise more than the amount of the fine and expenses, half of imbpomj ot ex.
the remaining amount shall be paid out to the owner of the farm and the other half ^J^^"****^
be deposited m the State coffer&

103. Article 102 shall shall also be in force in regard to digger's claims or ^^"SfweS^
amalgamated blocks of digger's claims for the si)ecial registration of which application ^'^^^'^^
has been made in terms oi Article 100, but provisionally and only so long as progress istration of
is made with the application, according^ to the provisions and within the terms laid tiOT^^haTbm
down in Article 100, until such application shall be granted or refused. ™^®*

104. A mortgage can be created on specially registered claims just as on Mortffase on
immovable property. The same regulations shall hold good in this respect as in the UJ^a claim!
case of mortgage of immovable property, such as, inter alia, with regara to the rights

of creditors and sales in execution, also as regards the drawing up of hypothecation and
mortgage bonds and the persons entitled to do so. The stamp dues, as laid down by ^^*™p ^^^^
the law in the case of fixed and immovable property, shall also be applicable here.

105. Stands on proclaimed township or townships approved by the Government speoui regittm-
may be specially registered in the same way as hereinbefore prescribed in respect of ^^° ^iSSed
dig^r's claims; no publication of a notice shall, however, be necessary and the ground.
Mining Commissioner may in this case immediately grant the special registration and ^° "^'^^^
issue a certificate thereof if he has no objections against the same.

106. With regard to the payment of the licences on specially registered stands ^^^^^tuSi
the rules prescribed in Article 102 with respect to specially registered claims shall '*^"^
apply.

** •^ If ortgageon

107. A mortgage may be effected on specially registered stands under exactly the uS^^i3^

634 The Gold Law.

same provisions as herein laid down with respect to mortgage on specially
claims.

Stands on a proclaimed gold-field, being leases in longvm tempue for 99 years, partake of the natare of
immovable rather than movable property. A mortgage of snch stands, therefore, in order to be good
against the debtor's creditors, must be effected, uke any ordinary mortgage of immovable prroerty,
coram lege loci. The mere deposit of the title deeds with the intendea mortgagee is not sofficienti
CoUina, N.O., vs. Hugo and the Standctrd Bank (C.L.J., Vol. X., p. 344), decided on the 16th of Aagost,
1893, Ck>ram Kotz^, G.J., and De Korte and Ameshoff, J.J.

N.B. — Article 107 of this Law corresponds with Article S2h of the Gold Law as introduced by
Article 20 of Law 9 of 1888.

Section 7. " Bezitrecht " (Right of Possession).

* Sdu^uUMe. 108. All " bezitrechten *' granted according to law, shall be indisputable, and can-

not be contested in law, unless they have been obtained through fraud on the part of
the possessor thereof.

Dtagmm of de- 109. The Government shall have the right, either after consultation with or on

^ngST* *"* ^^® recommendation of the head of the Mining Department, to instruct the Surveyor-
General to cause worked or developed digdin^ or portions thereof, after notice of at
least six weeks, in the manner defined in Article 110, second paragraph, to be surveyed
in such a way that every warer-right, " mijnpacht," watercourse, digger's daim, or
block of diggers' claims, or any other right or privilege necessary for the development
of the di£:£:inc8, shall be properly delineated on a diagmm, and further, be indicated on
a generaf Sm^tion diiTgrL Jr plan. ^ '

Approvia of by Thcsc diagrams shall be approved by the Surveyor-General in accordance with
^ejor- en- ^^j^j^ y^ When these diagrams are once approved and signed, no objection to the
boundaries established by tins survey shall be taken into consideration by any Court
Should it appear that such a diagram has been incorrectly framed the same shall be
amended or cancelled by an order of the High Court, and a new diagram shall be
approved in the usual way. Such cancellation shall be effected in accordance with

Cuoeiiation. ^^ No. 9, 1891, Articles 6 and 7 (General Survey Act), by the Surveyor-General, at
the request of the owner.

Notioeciuiingfor 110. As soou as possiblc, after the survey, the Mining Commissioner concerned
objectioiia. qj^qW issuc a uoticc Containing the name of the owner or possessor of the rights, the
description of the rights, the number of the diagram relating to the same, and also
calling upon all persons who wish to make objections against the same.

Pabiication for This uoticc shall be published for a period of three months in the Stdotscourant^
*** ™**° * and such notice shall further be posted up at the office of the Mining Commissioner

within whose jurisdiction the ground is situated, or at the office of the nearest Land-
^2£5m^ **' drost, and the diagram or diagrams relating thereto shall, during such period, lie for

inspection at the office of the Mining Commissioner concerned.

When no objec 111. If withiu the appointed time no objections are filed the Mining Commissioner

^^*' shall issue to the person entitled thereto the diagram approved by the Surveyw-

^"beiSScht"' General, in accordance with Article 74, registered and signed, besides a certificate of
" bezitrecht," in the form to be prescribed by the head of the Mining Department

Heftringofobjec. 112. When objcctious are filed with the Mining Commissioner he shall fix a ds?
^^^* on which the objection or case shall be heard by him. The Mining Commissioner shall

Action to be in- d^^d^t awarding the rights to the person who, in his opinion, is entitled to the sama
■matod^with^ If ouc of the parties is dissatisfied with this decision he shall be obliged, witbio

decSion*"©? three months after the date of the decision of the Mining Commissioner, to hisUUite
innfaig Com- an action in the High Court or Circuit Court, in default of which the decision of ^

The Gold Law. 635

Mining Commissioner shall be considered as final, and the diagrams and the certificate
of " bezitrecht " shall be issued in accordance with his decision.

113. The Mining Commissioner shall issue diagram and certificate of " bezitrecht," certuioAte of
in case of an action, in accordance with the judgment of the Court. iii**MootSMK)e

114. Parties interested are obliged, within two months after notice from the ment of th«
Mining Commissioner, to take out duplicates of the approved diagrams, oa payment of iH^li^tasof ap.
a sum to be fixed by the Government in proportion to the expenses incurred by the JJ^ *****
Oovemment in connection therewith.

If the parties interested neglect to take out these diagrams within the two months p^^^
hereinbefore mentioned, they shall incur a penalty not exceeding £10. Notice shall be ^'
given to them by the Mining Commissioner that on failure to take out diagrams within
one month after the date of the infliction of the fine, the renewal of their licences or Renewal of ucen-
confirmation of their rights may be refused. SeS*^^""

115. A " bezitrecht " includes all rights obtained under the grant, contracts, or
licences, and may be duly transferred, wholly or in part, by those who have acquired ^"^^S^itj
such right, and this " bezitrecht " shall be indisputable. indinmub

Transfer of "be*
dtrecht."

Indisputable.

116. Every person or company possessing a claim, block of claims, water-right,
trackways, machine stands, or watercourses, can make application to the Mining Com- '^^^Sxlgtorce^
missioner in writing, properly signed, and accompanied with an approved surveyor's SSredSt? '^^
diagram, or, if possible, with a surveyor's diagram of the claims or water-right, etc.,
requesting an investigation of his or their claims to a certificate of *' bezitrecht."

It shall thereupon be lawful and obligatory on the Mining Commissioner to^^^^^^
' institute an enquiry concerning such claims. Where it shall appear that the formal
legal proof of "bezitrecht " is defective owing to : — ^^^ ^^^^^ i^

(a) Transfer not having been passed ; or fi^JJ^t*^.

(6) Any defect in the competency or the authority of any person who may have *^*°**^**
given transfer, or may have pretended to give transfer ; or

be registered ; or

(d) The inability, for any other reason, of the holder in possession of such property

to obtain a certificate of " bezitrecht " in the manner hitherto prescribed by
law ; or

(e) The original acquisition of claims through faulty or false powers of attorney

or otherwise, provided the person who mc^es the application for the
" bezitrecht/' or who holds it, snaU not have been a party to the making of
such a false power of attorney, and is a bona fide possessor ;

Then the Mining Commissioner shall have the right to issue a certificate of " bezitrecht "
signed by him to such applicant.

Before the issue of such certificate of " bezitrecht," however, it must first be shown AppUcant must
tihat the applicant is in peaceful possession and enjoyment, and entitled to claim the gSssJuiion^^'*^
rights for which he has made application.

And
shall not

notice asking for object:
.within one month from the date thereof.

636 The Qold Law.

Notfcseoiaungfor Such notice shall be published three times in the Dutch language in the StaaJt^

objectioM. cowrant and at least once in a local newspaper, should there be one, and shall indicate

Puuicatioii. ^ clearly as possible the situation of the property, the nature of the rights claimed

in respect thereof, the name of the person who mak&& the claim, and in case any other

oontenti. person is registered as the holder, the name of such person.

When DO objec- In casc uo objectious are filed within such period of three months, the decision
^***^ of the Minitig Commissioner shall be final.

When objections In CEsc objectious are filed, the Mining Commissioner as such shall decide oon-
^"*** ceming the same.

In case objections are filed the procedure shall be in accordance with the provi-
sions of Article 112.

stamp duty. On a Certificate of ''bezitrecht" for claims, or blocks of claims and machine

stands a stamp of five shillings per claim and machine stand must be paid and on
other certificates of *' bezitrecnt " a stamp of ten shillings shall be placed on each
certificate.

Section 8. Undemvining Rights.

Where mtMpect- H?. Prospccting and digging is prohibited on or in towns, villages, stand villages

' i?^ii^biSSL^ public squares, streets, roads, railways, burial grounds, erven stands, locations, town

^ commonages, gardens, storage sites, machine stands, water-rights, and places where

tailings are heaped up, and such grounds as in accordance with Articles 15 and 16,

may be pointed out by the Mining Commissioner.

See the casee of Tht WUtoalervrand 0,M. Coy, vs. Yovngt referred to under Article 15, Kempm va.
The Modderfontein 0,M, Coy, and tht Mining Commiaaioner of BoMmrg, and NieolU va. Leyd$, K,0.,
referred to under Article 15.

See alao the case of Oinaberg vs. The Ga'uf Syndicate and the Mining Commianoner qf Bokdmrg in
Appendix C.

onmt of under- 118. The Govemmcnt shall, however, be at liberty to award undermining rights
mining righte. j^^ accordaucc with Article 117 of this law and in accordance with regulations drawn
up by the head of the Mining Department, approved by the Government and con-
Bxceptonhnriai firmed by the Second Volksraad, except under burial grounds.

Enquiry by Com- 119. Thcsc rights shall bc investigated by a Commission, consisting of the head
miflrion. ^£ ^^ Mining Department and two impartial jjersons to be nominated by the Govern-
ment, whose task it shall be to institute encjuiries in such cased on the gold-fields and
assist Government with their advice regarding underground mining.

Begnutioni to The Govemmeut shall thereupon decide, but in no case shall action be taken
be oonflrmed herein before the regulations mentioned in Article 118 of this law shall have been
v^km*d.^° confirmed by the Honourable Second Volksraad.

To whom gnm- 120. Such rights shsll bc granted : —

HoMeroffltandi. (1). To the holder or possessor under this law of bona fid$ stands on which

buildings stand, machine stands and water-right&

Hoiderofiurfice (2). To the pcrsou or pcrsous, holder or holders, possessor or possessors of the
"^fif***- surface right, where equity demands such.

PubUo MOe ot (8). In the remaining cases as follows : — On private proclaimed ground and oo
'••^ Government ground these rights shall be disposed of by Government by w»/

of public sale of leases, of which timely notice shall be given in the Staab-
^^y^^ cowrant The working thereof shall be effSocted under mgger's claim Va

The Gold Law. 637

Of the proceeds of the lease and licence monies on private proclaimed Digger's licence
ground half shall go to the registered owner of the farm or portion thereof "***"'*^'
or his assigns, and the remaining half to the State. Half of proceeds

121. In the case of public squares, streets, roads, railways, and such like, a three- ina^ot^Siio
Tnonthly publication and proclamation as afore-mentioned in Article 41 of this law ^^^on&
ishall take place before a right to mine underground is granted. notice to be

122. Those who have obtained written permission to mine underground from the security to be
Oovemment, whether by way of lease or otherwise, shall, within a period to be fixed deposited.
l>y the Government, have to deposit security to the satisfaction of the Government

and the owner of the surface.

123. This ground shall have to be paid for after the manner of claims, in accord- Payment aameM
Ance with Artide 120 of this law, to be calculated according to the superficial area of

such ground obtained for underground mining. The licences for the same must be

taken out immediately after the grant. Licenoee afte

124. Regulations for the safe working of such underground mines shall be drawn R^^i^one for
up by the State Mining Engineer, after consultation with the head of the Mining ^^ working.
Department, and, after approval by the Government, the same may come into opera-
tion until the next following session of the Volksraad, after which such amendments

And improvements as shall be deemed desirable by the Hon. Volksraad may be made.

Section 9. Water-Rights.

125. Owners and occupiers of ground along rivers of other water courses shall no action for
have no right of action against the Oovemment or any gold mining company or gold S^ly*^
diggers, or other companies or persons, exploiting mines or digging under protection oouwe ot^^
of the laws of the land, for damages for msturbmg or rendering muddy the water in '***^'*
the«aid rivers or watercourses by using it for minmg purposes.

The Oovemment shall, however, have the right to take measures and to make n^ynHtiftnt
vegnlations in regard to the disturbing or rendering muddy of rivers or watercourses.

Seethe case of Mar^ vs. The Movnt Mori O.M. Ooy.t referred to under Artide 5S.

126. With regard to the distribution of water, it is left to the Mining Commis- Distribntion ot
Msioner of each proclaimed field, subject to the further approval of the Oovemment, S^'oSi^
;af ter consultation with the head of the Mining Department, to make such regulations '^^^''
w^ith reference to the distribution of water as according to the circumstances of such

£eld may be considered fair and reasonable, regard being had to the rights of private
owners.

With regard to public fields, it is expressly declared that no digger, under any no ownership of
•circumstances whatever, shall have anv proprietory right in the water running in any ron^Nr water,
friver, watercourse or furrow. He shall only have the right to use the said water
according to law or regulations. In cases where, under certain circumstances, dam- vaiue^ w»ter
ages must be paid, the value of the water shall not be taken into consideration. ootnidrntilra

in eetimating

The Oovemment may, by agreement, grant special water-rights on Oovemment siJSlKSur
grounds, and also, for public interests, on proclaimed private grounds. ^^^

Bee the case of Mori vs. The Mount MaH O.M. Company, referred to under Article 56.

127. Holders of ** mijnpachten " and properly developed digger's claims shall be who entitted to
entitled to obtain water-rignts. water right*

Workers of tailings have the right to obtain uid to make use of water-rights ^SjT* ^ *^

638 The Odd Law.

under such regulations as may be granted thereanent by the Mining Commissioner ,.
after consultation with the Head of the Mining Department.

Where K. had let certain ground with water thereon to S., K. and S. both being under the impres-
sion that the said ground had been reserved on the proclamation of the farm, and S. afterwards* on find-
ing out that the ground had not been reserved, obtained a water-right from the Government to the same
water during the currency of the lease : — Held that S. could not dispute K's title to the lease, and could
not refuse to pay the monies due under the contract of lease. ITie Salitbury 0,M, Cvmppav^ vs. Tht
Klipriineri^rg E^AaU and 0,M, Company (C.L.J., Vol. XI., p. 50, decided on the 21st of August, 1S93),
coram Kotz^, G.J., and Jorissen and Morice, J.J.

The plaintiff Company allowed its tailings for two years to run down a creek and took no bteps to
prevent tnem being entirely washed away. The defendant afterwards pe^^ged off the oTOund on which
the tailings had been washed. The Company, in an action, claimed the tailines, but the Court held there
had been total abandonment, and gave judnnent for defendants. ShAa 0,M. Company vs. VatUin, MiU-
bourne and SUtra, decided on the 5th of Idarch, 1889, coram ESsselen, Jorissen and De Korte, J.J.
(unreported).

Article 486 of Law 10 of 1891, enacted that :— <' If before the taking effect of this amended law,
water-rights have been granted by Digger's Committees, whose regulations were not approved by the
Government, this fact alone shall be no reason for cancellation or non-confirmation of tneee rights, but
parties interested in such water-rights, as well as holders of water-rights which were not yet cormrmedby
the Head of the Mining Department, shall be obliged, within six months after the taking eflbct of this
amended law, to make appucation for a certificate of *' bezitrecht " for such water-right, in acooidaiioe
with Article 306, or for confirmation by the Head of the Mining Department, in the manner hereinafter
described.'*

Article 486, of Law 18, of 1892, re-enacted the same thing. It was held that 486 of the Gold Law of

" 9 486 of Law 10, of

April, 1895, coram

1892, gives a further term of six months after the lapse of the term granted by Article 486 of Law 10, of
1891. ZAndum O.M, Company vs. The Sexagon Syndicate, decidea on the 13th of
Kotz^, C.J., and Jorissen, J. ; Ameshoff, J., dissentiente (unreported).

Where irregular- 128. Should it appear that irre£(ularitie8 have taken place, such as, for exainple,

Mrtiflcite of when on the granting thereof they were not connected with claims, " mijnpacht, or

•• bedtreoht " right to work tailings, or when such mining right for which they were granted has

******** already lapsed, then no certificate of " bezitrecht " shall be issued for such waterrrights

and they shall not be confirmed by the Head of the Mining Department.

Where two companies entered into an agreement to make a joint dam on a certain piece of ground
for their joint use, and to amalgamate their respective water-rights for that purpose : — Held, that there
was a trust and confidence established between the parties to the agreement, and their snoooaaora, to hold
and use the amalgamated water-right jointly, and that neither party could set up the provisiona of a
subsequent Statute in justification of its conduct in fraud of the ^reement, unless the express language
of the Statute clearly sanctioned such a proceeding. Van Byn ^Jlf. Company vs. New Chimet 0,m.
Company (C.L.J. Vol XII., p. 60), decided on the 12th of November, 1894, coram EU>ti^, C.J., and De
Korte and Ameshoff, J.J.

No water rights 129. In future no water-rights shall be granted on proclaimed ground which are
mf^tedwm! not connected with claims, " mijnpacht," or a right to work tailings, except with the
^''•'°"'*^* express consent of the Government.

Applications. 130. Applications for water-rights must be made to the Mining Commissioner,

and every application must bear a stamp of the value of five shillings, and must be

siHBp. accompaniea oy plans in quadruple, framed by an admitted surveyor, which most

Flans. contain such connections and particulars as shall be desired by the Mining Commis-

sioner in accordance with Article 9 of the instructions for claim inspectors. The

siarned by Claim plans must be signed by the Claim Inspector as correct with the beaoona

The applications must be made in such form as shall be prescribed from time to
time by the Head of the Mining Department, and all particulars desired therein mwst
also appear on the plans.

Publication of 131. Noticc of thcse applications must be published by the applicant three times
pSant^^ *^ it the Staatscourant, and at least once in a local newspaper, should there be one. This
notice shall be issued by the Mining Commissioner in the form prescribed by tbe
Head of the Mining Department

The Gold ImW. 689

The applioation with plans shall, moreover, lie for one month at the oflSce of the inapection f or
Mining Commissioner for inspection of interested parties^ who may send in their ^*°^
objections to the Mining Commissioner concerned within that period. objactioiii.

' Should these objections be found groundless by the Mining Commissioner, after Hearinf of.
hearing the parties, he may grant the application.

When more than one applicant makes application to obtain One and the same
Water-right, the Mining Commissioner, after hearing the parties, shall decide who is .
entitled thereto.

From the decision of the Mining Commissioner an appeal may be entered within Afypaa to H«d
fourteen days to the Head of the Mining Department, whose decision shall be final. ^L^^^ ^^

182. All grants of water-rights are sent up to the Head of the Mining Depart- onmts of water
ment for confirmation, accompanied by a copy of the application^ the plans, and the ^^i^HMd
report of thie Mining Commissioner regarding the desirability, . or otherwise, of the JJJ^JSf '^
COiifirmation, regar£ng the consideration of uxe objections, if there were any, etc

In future no water-rights shall be considered valid unless confirmed by the Head Notviaid unien
of the Mining Department, or included in a certificate of " bezitrecht" oonnrmed.

133i On all water-rights intended and u6ed for motive-power the sum of la per w»ter Hgiitf tor
month shall be paid for each horse-power for every water-right not exceeding ten ™®**^«p<»^«'-
horse-power; ana 28. 6d. per month for each horse-power above ten horse-power.
Claims to which a water-right is attached and on whicn water-right payment, accord- ^^'^'^'^'i^?'^^
ing to this article, must take place, may not be renewed, unless the monies due on the monies dneon
water-right have been duly paid. hT^bJnpSd

134. On the lapsing of claims or *' mijnpacht," or of a right to work tailing, the Lmiiig of water
water-right granted for the working of such claims, " mijnpacht," or tailings lapses ^^^
alsa The last holder of such water-ri^ht has, however, for the period of one month uit hoMerpi
after the date on which the abovementioned mining-right lapsed, a preferent right to onem^Su^
recover the water-ri^ht for working other claims, *' mijnpacht," or tailings belonging

to him. When he sends in a new application for the same in the ordinary way.

A water-right may also, on the representation of the Mining Commissioner, be i^pj^^^^n not
declared by the Head of the Mining Department to have lapsed, when within two yean.
yeai-s after the confirmation thereof the machinery for which the water-right was
applied for is not in working order, or no proper use is as yet being made of the
wi^t-right.

135. No owner of a claim shall have the right to dam up natural or running Bunning water
water for his own use to the detriment of other daim-holders unless a water-right is ^^^^ ^
taken out by him in accordance with this law. Water obtained artificially shall not ' ^^
fall under this provision,

Section 10. Right to Firewood and otliei* Wood.

136. A permit may be obtained for the right to cut or carry firewood or other permit to cat
wood on or from Government ground ou payment of £1 (one pouna) for a wagon load, J^ m e^Tt
78. 6d. (seven shillings and sixpence) for a Scotch-cart load, and fid. (sixpence) for one 8:n>u»>-
nerson's load. The said permits may be obtained on Government grounds from the

Jfining Commissioner or Responsible Clerk. With regard to the cutting of wood on Agreement wiih

private ground an agreement must be entered into wiw the owner. r^^i^nS!^'

If a person pegs ofi* a piece of ground as a claim 6n which would grows, he shall wood may not

uoi be ^titled to cot and to carry away such wood foi^ sale or trading purposes, (a) ^^^!^'

o 2

re-
tor

640 The Qold LaW.

With regard to private grounds, these sums shall be paid to the priwte owner. Any
perton catting or canying away wood without a' permit or witnout leave from the
f^oMity, owner shall be punished with a fine not exceeding £26, or in default imprisonment not

exceeding six months, besides and above liability for damages for the wood cut or
removed.

Penalty tor cut- Should it be f ouud that more wood is taken away on a permit than that permit
WO& tun L^- rives the right to, the offender shall be punished with a fine not exceeding £50, or in
tow«i by per^ default with imprisonment, with or without hard labour, not exceeding twelve monthsL

''iSu^luJ?' ^ ^^ informer of the contraventions shall be entitled to the half of the fines paid

(a) This provision does not apply to stono dug out of the mines in the ooorae of mining operatioiia
Thus, where the defendants dug out stone in the ordinary coarse of gold mining operations and sold it to
the Jdiannesburg Sanitary Board, and the plaintiiF sued them for the valve of snch stone, it was held
that the dominium of the stone was in the defendants, the claim-holders, and not in the plaintiff, the
owner of the soiL Bezuidenhaut vs. Woreeder O. M. Co. (G.L. J., VoL XL, p. 905), decided on the 29th of
June, 1804, per Kotc^, 0. J. .

^1£im!5^ ** ^^*^' ^y white person or family shall, however, be allowed to obtain gratis for
his or their own domestic use firewood on Qovemment ground under permit to be
obtained from the Mining C!ommi8sioner, Responsible Clerk, Justice of the Peace, or

^•^"^^ Field-Comet, on payment of la per permit per month, on which permit not more than

one wagon-load of firewood may be carried away, such permits to oe renewed monthly.

CHAPTER IV.

MiSCSLLANSOUS PB0VIS10N&

^coniTrSted ^^^' Auyouc who digs a water furrow through a road or footpath which is used,
0T«r w»tar- shall construct a sufficiently safe bridge ; if he does not do so, BXtv official or private
'°"^* person may fill up the furrow, and the offender shall further be liable to a fine of from

^toaity. £1 to £10, or in ciefault of payment to imprisonment as laid down in Article 8.

He who closes or obstructs a road or footpath in any other way shall be liable to
the same penalty.

^S^llrtl'^'fMm ^^^* Anyone who removes ouarts from or out of the claim or ** mijnpacht ** of
cE^ of AD- another shall be responsible for au damafi;es, and shall m(»reover have to pay as com-
°^'^' pensation three times the value of what has been taken by him, apurt from the

criminal prosecution to which he exposes himself.

Altering or f 140. He who makes himself guilty of altering, shifting, or removing the beaeons
MMof oia^ of a claim shall be punished with a fine not exceeding the sum of £100, or in default
of payment with imprisonment as laid down in Article 8.

^"dSi^^nZ^ 141. Anyone who makes himself guilty of ii\}uring or destroying a mine, claim,

inery/fto. ' machiucrv, watercoursc, or other mining property or belongings, or who shall be

ffuilty only of an attempt to commit the said offences shaU be punished vriUi a fine of

&om £100 to £1,000, or with imprisonment with hard labour for the period of from

one to ten years, according to the nature of the case.

iMg«iM^ 142. Anyone who makes himself guilty of the wilful pegging off of claims whieb
woUmA i)eiong to others, and which are in proper order according to law, shall be pmushed

with a fine of not less than £25 and not more than £100 for every claim thus wilfoH/
pegged off, or with imprisonment as laid down in Article &

The word **mo«ltDd2^'' is equivalent to " Moto MMM.** CfharUm rs. Th€ StaU 10.L. J., Y^LJLfP

wntoi

off of Mil

The Qoid LHW. 641

291), deoided on the 3rd August^ 1894, eorom Kote4, C. J., and Ameshoff and Morice, J.J. ; Sylvi^er vs.
The State (Official Reports, I. 2., p. 48), decided on the 4th June, 1894, coram Kote4, O.J., and Jorissen
4tttd Morice, J.J.

143. ^very digger, inhabitant, or licence-holder shall, when called upon, render D^genmuitM*
.-assistance io maintain public order, under penalty of loss of licence and of a fine not uSnoider^'
exceeding the sum of £25.

144. Everyone within the boundaries of a proclaimed field being found guilty of TreMonandimb.
the crime of high treason or " gekwetste majesteit," or public violence, shiul, above on^rodiSmM
and besides the punishment provided by the law for such crime, forfeit all his goods, ^^
movable as well as immovable, in favour of the State.

Held, by the majority of the Ck>urt (Kotc^, G.J. and Ameshoff, J. ; Morice, J., diss.), that a bank
account ^dls within the terms of Article 148 of Law 19 of 1895. Held (per Morioe, J., dis^)., that Artide
148 refers to real rights to property, movable or immovable, situated within the Witwatersrand Gold
Ffelda, inclndine shares in oompanies the property of which is situated within such gold fields, but does
not refer to bank accounts. In rt the State Attorney vs. Lionel PMUips and otJiers (CrL. J., VoL XIIL, p.
102.

In JanuaiT, 1896, an interdict was granted against all the property of the Reform Committee on the
Witwatersrand Gold Fields. On the application of J. S. Curtis, one of the members of the Reform
Committee, it was held that his property cud not fall under the interdict, because it was situated on an
unprodaimed portion of Doomrontein. J, S. OwrHs vs. 7^ State^ decided 12th March, 1896, coram
Morioe J. (unieported).

See Article 144 of this law.

145. No person may carry on any trade whatever in unwrought precious yj^ tnding in
metal, amalgam or precious stones, under which is included the huying or selling, the ^J^'^^'^
bartering or exchanging, of such unwrought precious metal, ama^am or uncut without' ^pec-
precious stones, unless he has a special licence for the purpose, for which he must pay £10 ^ ^«>><^

a year ; provided, however, that the individual digfi[er or company need not take out Exception,
any licence for the sale of the unwrought precious metal, amalgam or imcut precious
stones dug out or found by him or it personally or on his or its instructiona The
■Government has the right to suspend, wholly or in part the working of the first gasp,
portion of this article with regard to one or more precious metals, amalgam or ^^
precious stonea

He who carries on trade in unwrought precions metal, amalgam or uncut precious penalty,
.stpnes.as above described, without having a special licence to do so, is punished with a
"fine not exceeding £100, or imprisonment with or without hard labour, or both
together, for the first offence ; for the second offence a fine not exceeding £200 or
imprisonment for a period not exceeding 12 months, with or without hard labour, or
both together, and for any further offence a fine or imprisonment, or both together, in
the discretion of the Court

146. Anyone who is found in possession of amalgam or unwrought gold or uncut j^^^g t^ nnwta
precious stones and can give no proof that he obtained possession of the same in a ■'o" kT^
mwf ul manner, shall be punished with a fine not exceeding £500, or imprisonment dSSLtuH*'
with or without hard labour for a period not exceeding two years, or both together,
according to the nature of the case, for the first offence. For the second offence a fine

not exceeding £1,000, or three years' imprisonment, with or without hard labour, or
both together, and for any further offence, a fine or imprisonment, or both together, in
the discretion of the Court, besides forfeiture in favour of the State of the amalgam
or unwrought goM or uncut precious stones found in his possession.

In The Stat4 vs. Jamee Baam (C.L. J., VoL IX., p. 182), where B. was indicted for being in possession
of anwronght geld, it was held that it was the duty of the judge to define '* unwrought gold," and that
^he question as to whether or no|« the gold was unwrought, was a question for the jury to oeddet Decided
ou the SSrd of Itebruary, 1892, c6rtsm Kots^, GL J. and Ce Koite and Morioe, J.J.

lentlon
iclc

642

The Qoid Law.

JJi^oaod dMier 147. A Hcensed dealer in unwrought precious metal, amalgam or micut predots

pt^lua^etai stones, shall keep such books of his business as the Qovemment from time to time

iMokL^ shall deem fit to prescribe, and the said dealer shall every month, on the first day of

each month, send up to the head of the Mining Department a irue and sworn copy

ot su(5h books, and m such form as the Government from time to time shall prescribe.

The Government shall at any time have the right to cause such books to h%

must
proper

BxAinination
books.

Pensl^'.

examined.

Persons des-
patching, etc
unwroa

Penalty.

Fonns for
turns.

Every contravention of this article shall be punished with a fine not exceeding
£50, or in default of pajnnent with imprisonment as laid down in Article 8.

148. The managers of banks, store-keepers, agents and in general all persons who

ght huy, sell, exchange, take or give for safe keeping, or despatch, unwrought gold, gold

ff^decSwtton ft^^^a^g*™* ^^^ othcr gold alloys are obliged to send in duplicate a declaration

in duplicate, thercancnt, on or before the 16th of each month, for the preceding month, to the office

of the Mine Inspector concerned.

In case no Mine Inspector's office is established on or near the place where the
transaction takes place, such declaration must be sent to the Mining Commissioner,
Responsible Clerk, or Landdroet of the district. These declarations must be Hiade
according to the forms prescribed for that purpose by the State Mining Engineer.

Contraventions of this provision shall be punished with a fine not exceeding £50,
or in default of payment with imprisonment for a period not exceeding three months.
The persons who, according to this article, are obliged to make montUy returns, can
»»* obtain the required forms for one or more months in advance at the offices of the
officials to whom the declarations must be sent in, either by personal application or by
written application posted, and are responsible for the consequences when they do not
provide themselves with the forms early enough.

Sending in of re- The Sending in of the returns may be effected bv personally handing them in at

*»"»• the appointed office or by post, in which latter case tne letter must be registered and

the sending in shall be considered to have taken place on the day that the return was

sent by post. Should the last day of the time for sending in fall on a Sunday or

holiday, tne return must be made the day before.

] 49. Anyone trading without a licence to trade shall be liable to the penalties
laid down by the law of the land. Further, shall be punished with a fine of not less
than £5, ana not more than £25, or in default of payment, with imprisonment as laui
down in Article 8 for every contravention :—

(a) He who digs or prospects for precious metal or precious stones without a
licence.

(b) He who pegs off a claim or claims without prospecting or digger's licence.
Moreover such pegging off shall be considered as unlawful, shall not be
recognised, and sniJl entail no right whatever.

(c) He who with or without licence digs or prospects for precious metals or
precious stones on Qovemment grounds which have not been thrown open
for the purpose by the Government in accordance. . with Article 64 of thiB

. law, unless special permission has been given by:. the Government This
special permission snail, however, not be given for longer tiian twelve
months, and shall lapse if within six months after the date of the permissioxi
no prospecting has been begun.

On the 13th of January, 1888, it was decided that a person coold ^eff off claims and then get HeeDOV*
Maddint B^f Syndicate vs. Go6tue and others (C.L.J., Vol. V., p. 16; Official Reporte, I. 1., pp. 134^ ^'^

Trading without
licence.

Penalty for dig-
ging or pros-
pecting with-
out licence.

^ pwL"? ^

cUune without
licence.

For digging or
prospecting on
unp reclaimed
Government
ground.

Special penuia-
■ion for twelve
months.

The dold LaW^i.^ 648

Tba law was altered by Law 0 of 1888, Artiola 80, which impoeeda penaltyfet peggitag off olaiinb
^without a lioenoe.

On the 20th of February, 189Sf, it was decided that if . a peraon pegs claims without Hoendes and then

obtains licences, before anvpne else with licex^ces pegs the same ground, he will ha^e a good t^tle to the

«bams notwithstanding Article 70 of Law 18 of 18df (which corresponds with Article 149 of Law 21 of

1896). Humphrewa vs. fJU CUum Itupeetor of HuAdberd amd Svmona and Lya (Official Reports, L 1.,

». 134, 136).

A person who pegs claims without licences always runs the risk of somebody else with licences
pegging the same ground before he can obtain his licences, as in the case of Blomfidd vs. Mining
tkmmunoner of Johamtukurg and F. /. Bestddenhowt^ ysn. (Official Reports, L i., p. 182), decided on the
17th of March, 1884, coram Kota^, CJ. and Jorissen and Morice, J^T. There the plaintiff and defendant
peeged off the same piece of eround as claims without licences, the plaintiff's pegging being ppor to the
dslendant's. The dcoendant then obtained licences and retrapped ms pegs' More the plaintiff could, do
so. It was held that the defendant had a better title than the plaintiff (Decided 17th of March, 1894.)
Article 70 of Law 14 of 1894, whidb corresponds with Article 149 of this law, enac^ : " Moreover such
oeggine off shall be considered as unlawful, shall not be recognised, and shall entail no right whatever."
It would seem, therefore, that, as the law now stands, if a person pegged off claims without licences and
then obtained licences before any other person with licences pe^^ecf the same ground, he would not
acquire any title to the ground.

It is not necessary that a person pegging off claims should • have his licences with him. If his
representative takes out the licences and hepees simultaneously, his pegging is good, though he be miles
away from his representative. But Article 39 (4th paragraph) ca thu law jsnacts : " No person shall, have
the right to peg off claims before he or his representative ts prtaent mth his lioethces on the groumd which he
wishes to peg oSd" This new law came into force on the Ist of November, 1898.

150. No one shall be allowed to pay his servants in un wrought precious metal> servutsmayiMt
amalgam or uncut precious stones, under penalty of a fine not exceeding the sum of ^^S^t^v^
£100, or, in default of payment, of imprisonment as laid down in Article 8, besides a cUwuinetJr
forfeiture Of such unwrought precious metal, amalgam and uncut precious stones in
favour of the State.

161. Anyone who purchases, barters, or accepts unwrought precious i^etal, P«w^jjg^ «»•
amalgam or uncut precious stones, from coloured persons either on a proclaimed dous metai
public field or elsewnere within the borders of the South African Republic^ shall be JSS)^?*^'^

Eunished with a fine not exceeding £1,000 and imprisonment, with or without hard
bbour, for a period not exceeding five years, besides forfeiture of such unwrought
precious metal, amalgam or uncut precious stones in favour of the State.

152. A coloured person who sells, barters, delivers, or receives unwrought ooioond penon
precious metal, amalgam or uncut precious stones, or is found in possession of ^|^f^*oagh'{
unwrought precious metal, amalgam or uncut precious stones, shall be punished with pfwdooimtui
not more than fifty lashes, and imprisonment for a period not exceeding five years,

with or without hard labour, and forfeiture of such rough precious metal, amalgam or
uncut precious stones, in favour of the State.

153. Every coloured person within the boundaries of a public digraigs must have ooioarad peivn
a monthly pass which is obtainable at the office of the Minmg Commissioner or other ^^^ ^^p**^
persons appointed thereto, on payment of a sum calculated at one shilling per

month, except in such cases where Law No. 23 of 1895 applies. For every contraven-
tion of this article the offender shall be punished with a fine of five shillings.

This article is also applicable to coloured labourers exclusively employed in
mining and digging on private unproclaimed grounds, and on private farms where in
accor£i.nce with Article 26 written peimission has been obtained, and on grounds
which are worked under concession or '' miinpacht," on Government as weU as on
prospectmg grounds thrown open to the publfc, W on townshipa o....»<i p«»»

154. A coloured person who has entered into a contract, whether verbally or in witboat iwr>
wxitinj^, to serve his master as a domestic servant or as a servant in a shop or store, or Slnyi^^tiff
to assist him in working a claim, machinery or waterfurrow on any proclaimed field, uSm£c ^^

644 The QoM Law.

Bod who departo without leave from his mastoids sendee, or is negligent or refuses to
do any work in discharge of his dnty which can according to law be asked and
required of him, or who uses threatening or insulting language to his master, his.
master's wife, or any other person lawfully placed over him, shaU be punished with &
fine not exceeding the sum of £2, or with imprisonment, with or without hard
laix>ur, for a period not exceeding one month, or with lashes not exceeding twenty-*
five in number.

serTftnt, not A Servant as above-mentioned, not being a coloured person, who is found guil^
J^pJ^'of any of the offences described in this article, shall be punished with a fine not
exceeding the sum of £5 or with imprisonment, with or without hard labour, for a
period not exceeding three months. The Mining Commissioner shall further, within
the limits of the fidd over which he is appointed, have the same duties and rights
which, according to Law No. 11 of 1892, Iianddrosts have, except on such fialds where
Special Landdrosts are appointed.

CoTiclud/ing provision.

TtMngtamA. 155 This law, as amended, comes into force from the Ist November^ 1896, witik

the exception of Articles 118 to and including 124 (as now amended) which shaU
remain in force until the further decision of the Hon. The First Volksraad.

S. J. P. KRUQBR,

State PreaidenL

Dr. W. J. LEYDS,

State Secretary..
Gbvemment Office, Pretoria,

19th September, 1896.

« '

The OMdl La#; 646

Appendix A.

SesoliUion of the Hon. Firet VoUcaraad, Article IJSSS, dated eoth September, 1895

The First Volksraad, with reference to the Executive Council's Resolution, Article
639, contained in the Government missive, dated the 5th instant, with the proposal
submitted therewith for amendment of Article 121, etc., of Uxe Gold Law, as approved
by the Hon. Second Yolksraad, now under consideration ; considering the fact that the
Gold Law has been dealt with by the Second Yolksraad, and that the First Yolksraad
has not all the data before it which were laid before the Hon. Second Yolksraad ;
farther, considering that there e^t great di^erences, as well in the Second as in the
First Yolksraad, concerning the so-cc3led undermining rights, and that it is therefore
not desirable to introduce amendments to the said law, where such great differences
exist; resolves that it can not agree with the resolutiim of tiie E&n« Government suspendon o
regarding Articles 121, 122, and 124, but resolves to accept the resolutions of the ub^^m!
Second Yolksraad with regard to the Gold Law as notice, witn the exception of Articles ^^ no.^
122 to 128 inclusive, and io hereby suspend the operation of the latt^ until the next issq.
ordinary session, imd instructs the Hon. Government to collect the necessary informa-
tion, and to submit the itame at the next session, in order to enable the Baad to become
better acquainted with the circumstances and with the feelings of the burghers of the
Bepublic

NJ3L-«-Article8 121, 122, 124, refetDed to in the above resolutioii, eoirespond to Articles
117, 118, and 120 in the Gold Law of 1896, and ArtideB 122 to 128. also referred
to above, correspond to Artidee 118 to 124 in the Gold Law of 1896.

.•• I

64r6 The Q6lcl Lafir;

Appendix B.

No. 235. R/6963/95.

GOVERNMENT NOTICE.

For general information are published herewith the following regalations with
regard to the drawing of lots for claims on private and Government ground, approved
by Article 1,129 of the resolutions of the Hon. Second Volksraad, dated 2nd August,
1895, which resolution was accepted as notice by the Hon. First Volksraad by Article
916 of its minutes, dated 14th August, 1895.

Dr. W. J. LEYDS,

State Seorekir^.
Government Office, Pretoria,

15th August^ 1895.

REGULATIONS.
For the drawing of lots for claims on private and Government ground.

Whereas it is necessary and desirable to make special provision for the pegging
off of claims on the proclamation of some farms in cases .where there are great
^herings of people, wnereby serious irregularities mi^t take ^aoe, now therefore it
IS laid down as follows

1. In future no private or Government ground, declared by prodaioation to be a

public diggmgs, shall be available For the peg^g aS of daims, before Uie

{>roclamation has been read on the ground to to proclaimed, where also the
icences shall be issued for the first time.

2. That, where in future it may appear to the head of the Mining Department

that on the proclamation of private farms and Government ground, the
circumstances reauire it^ the Government, with the advice and consent of tW
Executive Cduncil, shall have iiie jpower to instruct the Surveyor-GeneMl to
cause such farms or Government ground to be surveyed in claims, and to
have a diagram thereof made before the day of throwing open, which claimfl
must be properly numbered on such diagram.

On this diagram must further appear the situation of the claims men-
tioned in Articles 9, 10, and 14 of Law 14 of 1894, which must likewise be
surveyed and numbered before the day of throwing; open, as also the
" mijnpachten," homestead, building and arable lands granted, and other
grounas reserved under Article 20 of the said law, and the grounds reserved
by the Mining Commissioner, in accordance with the second paragraph of
Article 28 of Law 14 of 1894.

Articles 9. 10, U, 20, and 28 of Law 14 of 1894, correspond with Articles 47, 40, 48,
54, and 15 respectively of Law 21 of 1896.

The Gold LaW.

647

& The claims thus measared and.redueed to diagram, with the exception of those
mentioned in Articles, 9, 10, and 14 of the Gold Law, shall be given out by
lot to the public on the day of throwing open, and if neeeesairy en the
following days.

The Mining Commissioner or his lawful representative shall at this
^irawing of lots and giving out of claims have to take itito consideration :

(1) The number of claims available for the public.

(2) The number of persons present on the day o^ throwing open who

wish to obtain claims.

' . , • ■ ■ ■

In no case shall more than tw^ve claims be awarded to one person
by lot, in connection with which Article 61a aod 61c must be taken into
consideration, or such other provision as may at present exist or in future
be made thereanent in the Gold Law.

Article 61a of Law 14 of 1894 correspondfl with Article 65 of Law 21 of 1896, while Article
61o is left out of Law 21 of 1896.

4l The emenses of surveying the claims thus surveved shall have to be paid to
the Government by the claimholder immediately on issue of the licence, in
default of which the Mining Commissioner or responsible clerk is entitled
to refuse the licence, in which case these claims shaU be dealt with in torms
of Article 6lB of the Gold Law.

Article 61b of Law 14 of 1894 corresponda with Article 86 of Law 21 of 1896.

5. In case, on the day of throwing open, all the claims have not yet been sur-

veyed, only the claims which have been surveyed or reduced to aiagram shall
be drawn for. The remaining claims shall however as speedily as poHsible
be surveyed and drawn for on a day to be fixed by the head of the Mining
Department, of which drawing at least three weeks' notice must be given in
the " StaatscouranV

6. The manner of drawing lots shall be regulated by the head of the Mining

Department in consultation with the Government, while after the termination
of every drawing, a report must be s^tin by the Mining Commissioner as
soon as possible to the head of the Mining Department

7. These regulations come into force immediately after publication in the

" Staatscourant."

Na247

H. 8030/95.

GOVERNMENT NOTICE.

' • . ■ . ■ ■ ■ .

For general informattion are herewith published the following. Regulations for

<d^wing k)t8 for claims pn private and Government ground in ac^r^ancevwith the

resolution of the Executive Council, Article 603 of ite Minutes, dated 20th August, 1895.

r..

I ■ .

government Office, Pretoria,
20^A August, 1895.

D». W. J. LETDS,

. State ii€creiary.

•f-

• »

648 The QoM La«ri

EEGULATIONa

For the drawing 6f lots for elaims on private and Qovemment gronnd, approved:
by resolution of the Honourable Second Yolksraad, Article 1,129, dated 2nd.
August, 1896, and accepted as notice by resolution of the Honourable First
YoUksraad, Article 916, dated 14th August, 1895.

In consequence of the above Regulations, and for the carrying out of the same».
the Government has deemed fit to give out, l^ way of drawing lots, the claims on the
portion of the farm *' Witfontein," No. 572, formerly in the district of Potchefstroom,
now in the district of Erugersdorp, and portion of " Luipaardsvlei," No. 682, formerly
in the district of Potchefstroom, now in the district of Erneersdorp, and " Palmietfon-
tein/' Na 697, in the district of Potchefstroom, which wilfbe prodaimed respectively
on the 30th of August, 1895 ; 2nd of September, 1895, and the 27th August, 1895.

The manner in which the drawing for the claims must take place shall be as*
follows : —

(1) In accordance with the above-mentioned regulations, the claims, as surveyed

and reduced to diagram, in blocks of six claims, on the above-mentioned,
farms, by the Surveyor-Qeneral, shall be drawn for.

(2) The person or persons who are present on the day of proclamation on the

ground to be proclaimed, shall be entitled to obtain gratis one ticket for eadi.
person on each of the farms to be proclaimed, provided he produces his
receipt or certificate to show that he has paid his personal taxes for the
current yean

(3) The number of tickets shall be regulated according to the number of persons-

who, on the day of proclamation and after the reading of the same, shall be
present on the ground to be proclaimed, and who sfaaU be obliged to present
themselves to the Mining Commissioner or responsible derk, and to give him
notice, after production of the receipt for personal taxes, that they wish to
take part in tne drawing.

(4) The drawing for claims takes place on the day of proclamation, and if'

necessary on the following days, and shall commence directly after the
reading of the proclamation.

(6) When the number of persons present, who wish to take part in the drawing,
exceeds the number of blocks of 6 (six) claims, blank tickets must be put
into the drum after the tickets on which the blocks of 6 (six) claims in duet
sequence on each ticket have been noted have been placed in it.

(6) The names of the persons who wish to take part shall be placed in drum No*

1, and the tickets with the number and the numbers (six claims) and the-
blank tickets in drum No. 2. The official charged with the drawing shall
have to draw a ticket out of drum No. 2, while an official to be named by
the Head of the Mining Department shall have to dtaw a name out of drum
No.l.

(7) The Claim Inspeotor shall be obliged to point out to each person who has:

drawn a ticket representing claims the pegs and the situation of such daima

(8) The Head of the Mining Department shall have to exercise due supervisioii

and to instruct the officiius from time to time in accordance with these*
regulationi^

Thcf QoM LaW^

64»

Na 255.

R 8241/95.

GOVERNMENT NOTICK

For general information is herewith publiahed the following Article 1,408 of the
resolutions of the Hon. Second Yolksraad, dated 27th August, 1895, with regard to
the taking part^in the drawing for claims by youths of sixteen years, which resolution
was accepted as notice by the Hon. First Yolk^aad by Article 1,023 of its minutes,
dated 28t]^ August, 1896» wherein it was laid down that this resolution should come
into force imn\ediately after publication in the StcuUacowramt

Qovemment OflSce, Pretoria,
29th August, 1895.

DR W, J. LEYDS,

State Secretcury.

Resolution of the Hon. Second Volksraad, Article 1,408, dated 27th August, 1895.

The Second Volksraad, having considered the Qovemment missive, now on the
order, including a letter from Field-Comet Botha, and a telegram from |F!eld-Gomet-
Gronj|<^, with regard to the drawing for claims, now to tuce place, bv youths of
sixteen years, the Second Volksraad, taking into consideration that tiiis drawing is a.
special matter, resolves :

That in such special cases youths above the age of sixteen years, whose namea

Sfpear on the Fiela Comet's lists, and the taxes of whose parents have been paid for
e eurrent year, shall be entitled to take part in the drawing under the following
conditions : —

(1) Each of them must be provided with a Held-Comet's or Assistant Field-

Comet's certificate, showing the name and date of his registration in the
Bield-Comet's books.

(2) A certificate from the ofiSicial undw whose jurisdiction Ins parents come

showing that the taxes of Ins father or guardian for the current year havo
been paid.

(3) Each of them shall be present in person on the day of drawing.

This resolution shall only be of force on places for drawing of lots of claims, and
shall not be applicable in any other case.

• I •

. ■ I

660 The Oold Law*

-«»

Appendix C.

On the 12th of June, 1891» J. S. Curtis bought 78 prospecting claims on Turffon-
tein from a certain Bautenbach. On the 18th of June, the secretary of the Village
Main Beef Q.M. Company, on behalf of which Curtis had acquired the claims, applied
to the Mining Commissioner of Johannesburg for digger's hcences for the said caima
On the refusal of the Mining Commissioner to grant digger's licences, the secretary
applied for renewal of the prospecting licencea This request was also refused.
ThereupNon Curtis, in his capacity of managing director of the said company, made an
api)lication to the Court to compel the Mmine Commissioner to renew the licences,
maintaining that the main reef ran through the ground in dispute, and that such
ground was proclaimed ground. The Mining Commissioner alleged that he refused
to renew the licences because in conseauence of a contract between the Government
and the Deep Level Developing and Mining Township Syndicate, dated the 29th of
October, 1889, Uie ground nad been reserved for a township.

A rule nm having been granted, the Court (Eotz^, C. J., and Jorissen, J.) refused
to confirm it, Eotz^, C.J., said : — " The Court is of opinion that the rule nisi must be
set aside. Assuming that the Mining Commissioner can be ordered. Under certain
circumstances, to renew prospecting licences, or to change them into digger's lioenoes,
such circumstances are not present here. Under Section 67 of Law 8 of 1889, the
Government has the right to grant stands, provided it be not on gold-bearing gromd.
It is here disputed, and it is not known wnether the ground is gold-bearing or not
Moreover, the Government has the power to grant a piece of ground larger in extent
than the size of a stand, and that under one uoence. Of this right the Government
has made use, and there is nothing to show that it has here made an unfair use of
this power. More especially is this so because the respondent was, and is, in posses-
sion, and the applicant was warned of this fact, and, notwithstanding this, went and
pegged off, well Knowing that months before the ground had been granted to the
respondent, ^e respondent is entitled to the oosta"

CvHis N.O. v& The Mining Commissi&ner of Johcmnetbv/iy, and the Johannet-
burg Township Company, decided on the 12th of August^ 1891 (unreported^

The farm Klein Paardekraal was proclaimed on the 11th of October, 1886 with
the exception of such portion as had been beaconed off* for a ** mijnpacht." On the
8th of November, 1888, the plaintiff pegged off a claim immediatelv adjoining the
southern line of the Alexandra " mijnpacht, ' on the said farm. Some days afterwards
the defendants shifted the southern line of the Alexandra "mijnpacht,' so as to take
in a portion of the plaintiff's claim, and shortl}r afterwards again shifted the line so
as to entirelv include the said claim in the '* mijnpacht" In an action instituted bj
the plaintiflf, the defendants were ordered to move the southern line of their '* mijn-
pacht " to the place where it was at the date of plaintiff's pegging, and interdictBd
from committing any trespass on the said claim in the future.

Cathcart vs. The Main Reef 0,M. Company, decided on the 25th of November
1889 (unreported), coram, Kotz^, C.J., and Esseien and De Korte, J.J.

The Qold Law. 651

The beacons erected at the time of proclamation are the true boundaries, and thev
indicate the position of the *^ mijnpacht, ' and not the chart or diagram, when such
does not agree with the beacons.

Substantial damages, assessed by the Court without evidence of special damage*
ordered to be paid bv trespassers who p^ged, notwithstanding the fact that they saw
the beacons which had been erected.

Nabob 0,M. Company vs. Phosnix O.M. Compcmy.t decided on the 1st of March,
1890 (unreported), corcum KotzA^ G.J., and Esselen and De Korte, J. J.

Where certain lapsed claims had been bought from the Government, and the pur-
chaser, from whom the defendants, Bamato Bros., derived their title, finding that
some of these claims were not on the line of reef, on the advice of the Claim Inspector
took certain other claims on the line of reef instead, without filing powers of attorney
Cor the fresh claims thus taken. Held : That the plaintiff, who subsequently pegged
off the said fresh claims according to law, had a better title to them.

When a lapsed claim is bought, a title is acquired to ia certain definite piece of
ground, and not to any indefinite piece the size of a claim.

Powers of attorney once used for the purpose of obtaining licences for claims
cannot be used a second time, but are, as it were dead.

. Underwood va Bamato Bros, a/nd ihe Mining Commiaaionere of Boksbv/rg^ coram
Kotz^, C. J., and Ameshoff and Gregorowski, J.J.; decided on the 13th of June, 1896,
ai^d reported in the Cape Law Journal^ Vol. xiii.,' p. 226.

Where the Mining Commissioner of Boksburg had provisionally granted an
M^ication for a water*right made by the Gauf Syndicate, and the Head of the
liming Department had returned the said application to the Mining Commissioner to
have a certain discrepancy between the application and the diagram eliminated, and
the plaintiff pegged the sround, which was the subject of the application, before the
publication of me amended application. Held, that, as the final confirmation of the
water-right by the Head of the Mining Department was still peiiiding, the ground was
not open ground and could not be pegged.

Oineherg va The Oauf Syndicate airid the Mining ConMniasioner of Bohhwrg,
decided on the 8th and 9th of July, 1896, oorwm Ameshoff, Morice and Gregorowslu,
J J. (C.L. J. Vol. xiiL, p. 225).

N.B. The application for a water-right in this case was made some time after the
proclamation of the farm Leeuwpocyrt.

The plaintiff entered into a contract with the first defendant by which he acquired
ibe right to prospect on a certain farm and the further right to purchase the said
farm, within a certain period, for a certain price. The first defendant, notwithstanding
this, sold the farm to the second defendant The plaintiff sued the defendants for
performance of the contract and rescission of the sale. The first defendant took the ex-
ception that the contract was ab initio null and void because it had not been
natariaUy drawn. Kotzi, CJ., in delivering judgment^ said: ''The only question
which the Court must decide is whether the contract is ab initio null and voia under
(h^ Volksraad Besluit of August the 12th, 1886, Article 1,422. We are of opinion
that the contract alleged in the summons does not fall under the terms of the V.K
Besluit or under the provisions of Article 14 of Law 7 of 1883. It is ozily said that
the right tp prospect or sea^h for gold, etc., is gnuited to the plaintifl^ with the
further right to purchase the farm out' and out. This is not a case of a grant di

650 TheOoJklLawi

"I*

Appendix C

On the 12th of June, 1891, J. S. Curtis bought 78 priDspecthig clauns on Turffon-
tein from a certain Bautenback On the 18th of June, the secretary of the Tillage
Main Beef Q.M. Company, on behalf of which Curtis had acquired the claims, applied
to the Mining Commissioner of Johannesburg for digger's kcences for the said cairns.
On the refusal of the Mining Commissioner to grant digger's licences, the secretary
applied for renewal of the prospecting licencea Tms request was also refused.
Thereupon Curtis, in his capacity of managing director of the said company^ made an
application to the Court to compel the Mming Commissioner to renew the licences,
maintaining that the main reef ran through the ground in dispute, and that such
ground was proclaimed ground. The Mining Commissioner alleged that he refused
to renew the licences bemuse in conseouence of a contract between the Qovemment
and the Deep Level Developing and Mining Township Syndicate, dated the 29tli of
October, 1889, the ground had been reserved for a townwip.

A rule nm having been granted, the Court (KjotzA, C. J., and Jorissen, J.) refused
to confirm it, Kotz^, C!j., said : — " The Court is of opinion that the rule nisi must be
set aside. Assuming that the Mining Commissioner can be ordered, tinder certain
circumstances, to renew prospecting licences, or to change them into digger^s licences,
such circumstances are not present here. Under Section 67 of Law 8 of 1889, tbd
Government has the right to grant stands, provided it be not on gold-bearing gioimd.
It is here disputed, and it is not known whether the ground is gold-bearing or not
Moreover, the Government has the power to grant a piece of ground larger in extent
than the size of a stand, and that under one licence. Of this right the Government
has made use, and there is nothing to show that it has .here made an unfair use of
this power. More especially is this so because the respondent was, and is, in posses-
sion, and the applicant was warned of this fact, and« notwithstanding this, went and
pegged off, well Knowing that months before the ground had been granted to the
respondent. I'he respondent is entitled to the costs."

Curtis N.O. va The Mining Commissioner of Johofn/netburg, a/nd the JahannsB'
burg Township Compauy, decided on the 12th of August^ 1891 (unreported^

# * '

The farm Elein Paardekraal was proclaimed on the 11th of October, 1886 with
the exception of such portion as had Jbeen beaconed off for a ** mijnpacht." On the
8th '"
southern

the defendants shifted the southern line of the Alexandra '' mimpacht,'
in a portion of the plaintiff's claim, and shortly afterwards again shifted tiie line so
as to entirelv include the said claim in the " mijnpacht" In an action instituted Ij
the plaintiff, the defendants were ordered to move the southern line of their ''mqiip
pacht " to the place where it was at the date of plaintiff's pegging, and intatdifltad
irom committing any trespass on the said claim in the future.

Cathcart vs. The Main Reef G.M, Compomy, decided on the 25th of
1889 (unreported), coraan Kotzl, C.J., and Esselen and De Korte, J.J.

The Qold Law.

The beacons erected at the time of proclamation are the bne boondaries, and they
indicate the poration of the " mljnpacht, ' and not the chart or diagram, when such
does not agree with the beacons.

Substantial damages, assessed by the Court without evidence of speual damage,
ordered to be paid by trespassers who pegged, notwitbstartding the &ct that they saw
the beacons which had been erected

Nabob QJi. Compa/ay vs. Phcenix Q.M. Com/paivu., decided on the Ist of March,
1890 (unreported), coram, Kotzi, CJ., and Elsseleo andDe Korte, 3 J.

Where certain lapsed claims had been bought from the Government, and the pur-
chaser, from whom the defendants, Bamato Bros., derived their title, finding that
some of these claims were not on the line of reef, on the advice of the Claim Inspector
todc certain other claims on the line of reef instead, without filing powers of attorney
£or the fresh claims thus taken. Held : That the plaiDtifT, who suosequently pegged
off the said fresh claims according to law, had a better title to them.

When a lapsed cUum is bought, a title is acquired to a certain definite piece of
ground, and not to any indefinite piece the size of a claim.

Powers of attorney onoe iised for the purpose of obtaining licences for claims
eannot be used a second time, but are, as it were dead.

Underwood vs. Bamato Bros, and the Mining Conwnisaionera of Bohibwrg, coram
Kotz^, C.J., and Ameshoff and Gregorowski, J.J.; decided on the 13th of June, 1896,
and reported in the Cape Law Jov/mal, Vol. xiii., p. 226.

Where the Mining Commissioner of Boksburg had provisionally granted an
aiK>lication fco- a water-right made by the Gauf Syndicate, and the KeaA of the
Mining Department bad returned the said appUoatioa to the Mining CommissionQr to
have a certain discrepancy between the application and the diagram eliminated, and
the plaintiff pegged the ground, which was the subject of the application, before the
publication ot the amended application. Held, that, as the final confirmation of the
water-right by the Head of the Mining Department was still pending, the ground was
not open ground and could not be pe^ed.

(Hvisberg vs. The Otmf Syrutieate and the Mining Comrmismontr of Boksbv/rg,
decided on the 8th and 9th of July, 1896, coram. Ameshoff, Morice and Gregorowski,
JJ. (C.L.J. Vol. xiiL, p. 225).

N.B. The application for a water-right in this case was made some time after the
proclamation of the farm Leeuwpoort

The plaintiff entered into a contract with the first defendant by which he acquired
the right to j}ro(ipect on a certain farm and the farther right to purchase the said
taxm, within a certain period, for a certain price. The first defendant, notwithstsndtaf
tiliB, sold the fai-m to the second defendant. The plaintiff sued thu defendants {be
performance of the contract and rescission of the sale. The first defendant took the ei-
eeption that the contract was ah initio null and void because it had not bm
notarially dmwn. Kotz4, CJ., in delivering judgment, said: "The only y^ltim
which the Court must decide is whether the cont^Hkoi «^Smll and void m^r
tiu) Volksraad Bealuit of August the 12Lh, ^^^M^^gy ^^ are of

that the contract alleged in the summona (' " "
Besluit or under the provisions of ArticJM
Che ti^t to prospect or sei ' """
fdMier right to pu« ' "

652 The Qpld Lnw.

rights to minerals or regarding rights to dig {(if%i(md, van regten of rninertxlen of
orrUreTit regtm^ cm te delven\ of which Article 1,422 speaks, nor of a grant of
a right to minerals which are supposed to be present or are actually present on any
farm as laid down in Article 14 of Law 7 of 1883. All that is granted to the plain-
tiff is the mere riakt to search for gold and other minerals and, whether these, are
found or not, the further right to purchase the farm. There is no ^ftam^ or cession of
mineral rights or rights to minerals^ and we are therefore of opinion that the excep-
tion must be set aside with the costs."

Pearce v. Olivier cmd others, decided on the 13th of November, 1889 (unreportedX
coram Kotz^, C. J., and De Korte and Ameshoff, J J^.

On the 28th of May, 1887, a certain contract was entered into between tbe
plaintiff (and others) on one side and the defendant on the other, one of the clauses
of which contract was as follows; * The owners of and parties interested in the half
farm Welgegund adjoining Oudedorp and transferred to the name of J. ^. EL N.
Bezuidenhout have agreed as follows, — that all rights, profits, and privileges, arising
out of the mineral rights on the said half farm Welgegund shall be divided as
follows, etc."

The plaintiff sued the defendant to have the agreement drawn up notarially m
accordance with one of the terms of the agreement The defendant pleaded that tbe
plaintiff was debarred from suing because the agreement on which he sued was not
nota/rial in accordance with the Yolksraad Besluit of the 12th of August, 1886. The
majority of the Court (Kotz4, C.J., and De Korte, J.) held that judgment should be
given for the plaintiff Eotz^, C.J., gave as his reasons, (1) that the uteral interpreta-
tion of the above-mentioned clause removed the contract from the operation of the
Yolksraad Besluit ; (2) that the circumstances of the case showed that in the abov^
mentioned clause no grant of mineral rights, but only a divisicm of the privileges and
proceeds thereof was in the contemplation of the parties ; (3) that even if the said
clause fell within the terms of the Yolksraad Besluit, stdll the defendant could not be
heard when he attempted to make use of that Besluit to the prejudice of the .plaintiff
for this would be equivalent to a fraud on him. The action was brought to oomfA
the defendant to comply with the terms of the Volkraad Besluit, by executing A
proper notarial agreement as contracted between the partiea De Korte, J., baae^us
judgment on the last ground above-mentioned.

Esselen, J. (dis&) held that the said clause fell within the terms of the Yolksraad
Besluit

Steyn va Bezuidenhout, decided on the 6th of Mareh^ 1890 (unreported).

The Paarl Pretoria Ckmipany, claiming to be the owner of certain daims on the
farm Langlaa^te, in November, 1888, sold all its rij^t to the said daims to the
Central l^nglaagte Company. In January. 1889, Donovan, maintaining that ibe
ground was open, pegged off the same claims and instituted an action against fim
Central Langlaagte Company for ejectment The claims were awarded to DonovaiL
When the summons was served on the Central Langlaagte Company, this oompan/l
attorney wrote on the 21st March, 1889, to the attorneys of the raarl Pretoria Com-
pany giving them notice of the action, and advising thai the Paarl Pretoria Gompuj
should intervene, seeing that this company sold the claim to Central Langlaagte Uoo*
pany.

The Paarl Pretoria Company took no steps to intervene, and, afterjuc^ment WM
given in favor of Donovan, instituted an action against Donovan and Woli^ as lepie*

The Gold LmW. 658

.-Benting the Boyal Lanfflaagte Company, to whom Donovan had in the meanwhile
^8old the claims. The defendants (Donovan and Wolff N.O.) pleaded Res judicata,
.and this plea was upheld and the plainti£b held to be estopped from instituting the
■action on the ground that they ought to have intervened in the action of Donovan vs.
The Central Langlaagie Gom/pam/y.

The Paarl Pretoria O.M. Coy. vs. Donovan and Wclff^ N.O., decided on the 25th
November, 1889 (unreported), coram Eotz^, CJ., and Esselen and De Korte, J. J.

On the 2nd February, 1889, certain Scott and Sparks pegged off 12 claims on

Sound afterwards known as Schweizer's Township, and on the 7th February, 1889,
ey pegged off 12 more claims. In April, 1889, those claims were amalgamated in
blocks and registered in the name of the Non Pareil Syndicate consisting of Scott,
^arks and Thomas Whitty. On the 2nd and 7th of September, 1889, the Mining
Commissioner of Johannesburg refused to renew the prospecting licences, because, as
he stated, he wished to compel the Non Pareil Syndicate to take out digger's licences
instead of prospecting licencea Scott and Sparks alleged that the renewal was
refused because the Gbvemment wished to lay out a township on the ground. The
Non Pareil Syndicate made no objection and lodged no protest against the refusal to
Mnew.

On the 21st September, 1889, a contract was entered into between the Govern-
ment and Schweizer, giving the latter the right to lay out a township on the ground
held by him. Schweizer had pegged in July, 1889, and he caused a diagram to be
made of all ^x>und held by him, which included the 24 claims above-mentioned. In
JKlarch, 1890, Schweizer caused a sale to be held of the stands laid out by him, but only a
few were sold. He thereafter ceded all his rights to Hollard and Van Boeschoten,
who again ceded to the Rand Exploring S^dicate. In 1893, on the advice of a
^vemment Commission, the Qovemment decided to change the stands into claims
•and to issue claim licences to the Band Exploring Svndicato, and the svndicate had to
indemnify the Government against any claims wnich might be set up by persons who
had previously held portions of the ground induded in Schweizer's Township.
Thereupon the Non Pareil Syndicate sent in a claim for a block of 12 claims, but this
was refused, and an action was consequently instituted against the Band Explorini?
Syndicate in March 1895. After the dosing of the pleadings the Non Pareu
Syndicate ceded all its rights to the Schweizer's Claimholders Bights Syndicate, which
obtained leave, with the consent of the defendant syndicate, to appear as plaintiff!
The Court found that the renewal of the 'prospecting licences was refused because the
Mining Commissioner wished to compel the Non Pareil Syndicate to take out digger's
licences instead, under Article 17 of Law 10 of 1887, and held that this syndicate
must be taken to have abandoned its rights on the ground that it did not protest
either when the renewal of prospecting licences was refused, or when Schweizer put
up the stands for sale. Judgment was, therefore, g^ven for the defendant with costs,
ite Court considered that the taking over of the rights of the Non PatreU Syndicate
by the Schweizer's Claimholders Bights Syndicate was impeachable on the ground
or champerty, but did not think it necessary to decide the ease on that ground.

Schweizer's Claimholders Bights Syndicate, Ld, vs. The Rand Exploring
Syndicate, Ld., dedded on the 25th of August, 1896, eemnn Eotz^, C.J., and
C&egorowski, J., (not yet reported).

Certain persons who alleged that they were entitled to certain claims (127 in all)
on the farm Turffbntein, in tiie possession of the Band Exploring Syndicate, joincKl
with certain other persons present who had no interest in these chams^ and formed the

654 The Qold Law.

Schweizer's Claimholders Bights Syndicate, Limited, with the object of o1 _

possession of the said claims and working them. The consideration received by those
persons who alleged that they were entitled to claims consisted of shares in the
Syndicate, while the working capital of the company, out of which the expenses of
litigation were to be defrayed, was advanced by some of the other persons who had
no interest in the claims. The syndicate instituted action against the Rand
Exploring Syndicate, and the defendants raised the plea of champerty. The Court
held that the articles of association of the syndicate were tainted with champerty and
were, therefore, contra bonos morea, and granted absolution from the instance with
costs.

Schxveizer's Claimholders Rights Syndicate, Limited, v& Ramd EoDploring
Syndicate, Limited, decided on the 4th September 1896, coram Eotz^, C.J., and
Ameshoff and Gr^orowski, J J. (not yet reported).

The plaintiff, Schuler, had certain i)rospecting rights over certain property. On
the 27th February, 1895, he entered into a contract with the defendants Sacke and
Saenger, the terms of which were contained in a letter written by Saenger on behalf
of himself and Sacke. According to this agreement Schuler was to receive a certain
sum of money and a certain number of shares on " flotation, sale, or otherwise " of
the property. On the 24th of September, 1895, the defendants sold all their rights
to George Albu as trustee for a certain company to be floated. The company was
floated on the 1st of November, 1895, under the name of the Sacke Estates and
Mining Company, limited. The defendants, while admitting the agreement of the
27th of February, said that the property had never been sold or floated into a
company, but that they had merely sold their rights under the agreement to George
Albu Q.Q., and that, therefore, the Sacke Estates and Mining Company, Limited, stood
in their shoes and would be liable to the plaintiff^ when the property was actually sold
or floated.

Under these circumstances Jorissen, J., sitting at Johannesburg, held that there
had been such a dealing with the property as was contemplated in the agreement and
that, therefore, the plaintiff was entitled to the money and shares claimea On appeal
to the full Court in Pretoria this judgment was upheld.

Hchuler va Sache and Saenger, decided (on appeal) on the 4th of August, 1896,
coram Ameshoff, Morice and Gregorowski, J.J. (not yet reported).

On the 19th of February, 1895, Jooste, who was the owner of certain 70 claims in
the district of Potchef stroom, entered into an agreement with Carlis, under which the
latter obtained the exclusive right to prospect for gold on these claims. It was
further agreed that Carlis should " have the sole and exclusive right and power of
purchasing, selling, floating into a limited liability company, or otherwise disposing of
the said claims, provided that upon such purchase, sale, flotation, or disposal he
shpuld pay to Jooste ^100 or 100 fully paid-up shares for each claim so disposed of.

It was further agreed tliat the formation of a syndicate for the purpose of merely
testing, or exploiting such claims should not entitle Jooste to claim the above-
nioitioned consideration.

• ■

On the 26th of Octoberi 1895, Carlis ,ceded |iis right or option under the
agreement to Jacob Creewel, William Peter Taylor, and tlie finja of S. Neumann & Ca
On the 29th of October Creewel ceded his one-third share in the said right or option
to the Klerksdorp Proprietary Mines, Limited. Thereupon Jooste sued Carlis for
£7,000 or 7,000 shares in the Klerksdorp Proprietary Mines, Limited. It appeared in
evidence that there was an understanding that W. P. Taylor imd S. Neumann ft Oft

The <iold Law. 655

would transfer their rights to the above-named company. Carlis contended that the
claims had not been sold, floated, or otherwise disposed of, but that he had merely
ceded hia right or option under the agreement of the 19th of February.

The majority of the Court (Gregorowski and Eleyn, J.J., Morice, J., disa) held
that the plaintiff was entitled to succeed, on the following grounds : — ^That Carlis had
made over all his rights and obligations to Creewel, Taylor, and S. Neumann and Co.,
for value received, but Jooste obtoined no rights as ag^dnst these persons. That it
would be unfair to allow Carlis, by cleverly framing ms a^ement, to keep Jooste
out of his money for an indefinite time and in the meanwhile enjoy all the benefits
which he would have enjoyed in the case of an actual sale. That such was not
the intention of the partiea That the fact that the formation of a syndicate to test or
exploit the claims did not entitle the plaintiff to payment, showed that in this case he
was so entitled, as the defendants did not allege that the Elerksdorp Proprietary
Mines, Limited, was such a syndicate. That Carus was more or less in me position of
an agent for Jooste, and therefore in a position of trust That under these circum-
^stances such an alienation as was contemplated in the agreement must be considered to
have taken place.

Morice, J. (dissentiente) held that this case could be distinguished from the case of
SchtUer vs. Sacke and Saenger, because in that case Schuler was not the owner of the
ground. He merely had certain rights in personam against the owner of the ground.
When Sacke and ISaenger made over their rij^hts under the a^eement of the 27th
February,1895,to the company, thev disposed of all the rightswhichSchuler had possessed
in the ground, and there remainea nothing further which he could have transferred,
and therefore he was entitled to the stipulated consideration. But in this case Jooste
was the owner of the claims, and when Carlis ceded his rights and liabilities to
Creewell, Taylor, and Neumann & Co., he did not transfer Jooste's jv^ in rem in the
claima Jooste could not be prejudiced because the claims were registered in his name,
and he was not boimd to give transfer until he received the stipulated payment.
Moreover, the use of the words " assignees " and " successors " in the agreement showed
that it was contemplated that Carlis could cede his rights. As a matter of fact cessions
of such options were of frequent occmTence as a speculation on the goldfields. As it
did not appear that such an alienation as was contemplated in the agreement had
taken place, his Lordship considered that the judgment should be absolution from the
instance.

Jooste vs. Ca/rUs and Creevoel, decided on the 27th of August, 1896 (not yet
reported).

The Plaintiff Syndicate alleged that Alfred Berriman, q.a. the Berriman Syndicate^
on the 21st December, 1894, took out 100 licences and peggea off 100 claims on Block
B, on the farm " Draaikraal," district Heidelberg, and renewed the licences till the 21st
of September, 1895. Further, that on the 2l8t of February, 1895, he took out 115
licences, and on the 4th of March pegged off 115 claims on another portion of the
same Block B, and renewed the licences till the 15th of September, 1895. That in
March, 1895, Simpson, the defendant, lodged a protest against the numbering of the
said claims. That thereupon the Mining Commissioner refused to allow the claims to
be numbered, and in September refused the renewal of the licences

The defendant alleged that on the 18th of February, 1895, he took out 100 licences
and pegged the ground which the plaintiff alleged Bemman pegged in December, 1894,
and that he still held the claims, xhat Berriman did not properly peg the ground in
December, 1894, because he erected comer beacons only, and that the plaintiff

p 2

656 The Gold Law.

fraudulently held about 200 claims (viz. the whole of Block B) under only 100 licences.
The 115 claims were not in dispute.

The Court found that Berriman pegged only the 100 claims in December, 1894 ;
that he put in only one centre peg for each claim, and did not put in the comer pegs
as required by law ; and that in February, 1895, he placed an iron sign board at each
comer of the block of 100 claims. It held that the provision of Article 63 of Law 14
of 1894, with regard to two centre pegs was unintelligible, and that the plaintiff had
sufficiently complied with the law. Further, that as the plaintiff had made a trench
round the block of 100 claims there could be no doubt as to their exact situation, and
that therefore the non-compliance with the provision of Article 63, with regard to
comer pegs within seven days, was not fatal Further, that the defendant was a
"jumper," and that in a dispute between a "jumper" and a bona iide pegger the
Court would not lightly deprive the latter of his claims on a mere informality, seeing
that the law does not say that such informality shall entail forfeiture.

Judgment was therefore given in favour of the plaintiff for the 100 claims in
dispute with costa

Berriman Syndicate vs. Simpson, decided on the 4th of September, 1896, coram
Kotz^, C. J., and Ameshoff and Qregorowski, J. J. (not yet reportea).

On the 7th of December, 1894, the plaintiff, Dawe, pegged off 74 claims on the
farm " Middelvlei." In February, 1895, he gave instructions to have the ^ound sur-
veyed. On the 8th of March, 1895, the survey took place, and on the 28m of March
he received the surveyor's dia^am. He then for the first time found out that the
ground pegged comprised 105 instead of 74 claim& On the 30th of March he applied
to the Kesponsible Clerk at Doomkop, under Article 62/ of Law 14 of 1894, for the
surplus groimd, i,e, 31 claims. This application was granted by the Responsible Clerk
on the 6th of April, 1895, whereupon Dawe took out the necessary licences for the
said 31 claims. On the 22nd of March, 1895, Cordeaux having found out that Dawe
had pegged off more ground than his 74 licences entitled him to, provided with licences
went and pegged off 25 claims on the said ground. He at the same time made applica-
tion for these 25 claims, but the Responsible Clerk refused to give them to him. In
July, 1895, however, these 25 claims were gi-anted to him by the Head of the Mining
Department. Dawe instituted an action for a declaration of rights. The Court
aasumed that Dawe had acted bona fide in pegging 105 claims instead of 74 under 74
licences, but held that, as he had only 74 licences, and intended to peg only 74 claims,
whatever surplus there was above the 74 claims had to be looked upon as open ground,
and as Cordeaux had properly pegged 25 claims on the 22nd of March, 1895, before
Dawe applied for the surplus ground under Article 62/, he thereby acquired a good
title to me said 25 claims. The Court further held that as Dawe had pegged first he
was entitled to 74 claims, beginning from the place where he startea pegging, and
that Cordeaux was entitled to 25 claims on the remainder of the grouno. J udgment
was therefore given in favour of Cordeaux for 25 claims with costs.

Dawe va Cordeaiuc and the Responsible Clerk of Doornkop, decided on the 4th of
September, 1896, coram, Kotz^, C.J. (not yet reported).

On the 13th of June, 1888, all Government ground in the district of Heidelbeie
was thrown open. In March, 1893, the defendants pegged off a certain piece of

Sound on Vogelstruisbult under 800 licencea On the 10th of April, 1893. the
ining Commissioner refused to renew the licences because there was a dispate
between the Government and one Botha, the owner of Daggafontein, as to whethtf
the ground belonged to the Government or to Botha. The Mining ComnuasioiMr

The Gold Law. 657

assured the defendants that if it should afterwards appear that the ground was
Government ground they would retain their rights, in February, 1895, it was
settled that the ground belonged to the Qovemment, and the defendants thereupon
on the 9th of March, 1895, renewed their licencea They, however, renewed only 600
licences. On the 29th of April, and 6th and 9th of May, 1895, the plaintiff pegged
off the ^ound for which the defendants held the 600 licences under 1,173 hcences.
After the pegging by the plaintiff, the defendants had the ground surveyed, and
found that it comprised 1,173 instead of 600 claims. They thereupon applied under
Article 62/ of Law 14 of 1894 for the 573 surplus claims, and their ap^ication was
granted by the Head of the Mining Department in July. Thereupon, the plaintiff
instituted action for a declaration of rights. He alleged that the defendants had no
right to any of the 1,173 claims (1) because they in 1893 abondoned their rights, and
did not peg again in 1895 ; (2) because they fraudulently held 1,175 claims under
600 licences.

The C!ourt held that the defendants did not abandon their rights in 1893, and
that when they renewed their licences on the 9th of March, 1895, their original
pegging was still good. That when the plaintiff pegged in April, the defendants
were in possession of the ground under 600 licences, ana that it was not necessary to
decide what would have happened if the plaintiff had pegged before the 9th of March,
i,e., before the defendants ootained renewal of their licences. Further, that although
the defendants had pegged ground comprising 1,173 claims under 600 licences, there
was no intention to defraud, and no one was prejudiced, and that therefore the
defendants were entitled to 600 claims. With regard to the 573 remaining claims,
the application for them was not granted (or made) until after the plaintiff's pegging,
and consequently at a time when the ground was no longer open. Further, that, as
the defendants had been the first to peg, they were entitled to choose their 600 claims
first, and for this purpose they were allowed fourteen days, and that the plaintiff was
entitled to the remaining 573 claims. Defendants were ordered to pay costs.

Nevhauer vs. Van Diggden and Wilson decided on the 4th of September, 1896
coram Kotz^, C.J., and Ameshoff and Gregorowski, J.J. (not yet reportea).

On appeal from the decision of the Landdrost of Johannesbui^, the Court held
that digging a furrow to carry off water and cleaning it was sufl^^ient working of
the claims by the company holding them, and set aside the judgment of the
Landdrost.

Henry Nourae 0, M, Coy, vs. Eland, decided on the 5th of July, 1889, cora/m
Kotz^, C.J., and Jorissen and De Korte, J.J. (unreported).

A person digging for gold on a proclaimed goldfield, under the Qold Law of 1875,
without a licence, is a wrong-doer.

A gold-mining concession, granted by the Government and confirmed by the
Yolksraad, provided that all diggers at present digging on the farm embraced by the
concession shall be compensated : — Hdd, that this did not entitle the diggers to peg
out and work new claims on the farm, after the granting of the concession, and that
they must be interdicted from so doing.

Oilhaud and Co. vs. Walker and others, decided on the 4th of December, 1883,
coram Kotz^, C.J., and Burgers and Brand, J.J. (Kotz^'s Reports, 1881-1884,
page 82).

Digging for gold without a licence renders the digger a tresspasser under the
Gold Law of 1875.

648 The Gold Lawi

REGULATIONS.

For the drawing 6f lots for daims on private and Government gronnd, approved*,
by resolution of the Honourable Second Volksraad, Article 1,129, dated 2nd.
August, 1895, and accepted as notice by resolution of the Honourable First
VoO^Braad, Article 916, aated 14th Aujgust, 1895.

In consequence of the above Begulations, and for the carrying out of the same».
the Government has deemed fit to give out, hy way of drawing lots, the claims on the
portion of the farm ** Witfontein," No. 572, formerly in the district of Potchefstroom,
now in the district of Elrugersdorp, and portion of " Luipaardsvlei," Na 682, formerly
in the district of Potchefstroom, now in the district <d frogersdorp, and " Palmietfon-
tein/' Na 697, in tiie district of Potchefstroom, which wilfbe proclaimed respectively
on the 30th of August, 1895 ; 2nd of September, 1895, and the 27th August, 1895.

The manner in which the drawing for the claims must take place shall be aS'
follows :-—

(1) In accordance with the above-mentioned regulations, the claims, as surveyed

and reduced to diagram, in blocks of six claims, on the above-mentioned,
farms, by the Surveyor-General, shall be drawn for.

(2) The person or persons who are present on the day of proclamation on the

groimd to be proclaimed, shall be entitled to obtain gratis one ticket for eadi.
person on each of the farms to be proclaimed, provided he produces his
recciipt or certificate to show that he has paid his personal taxes for the
current year.

(3) The number of tickets shall be regulated according to the number of persons-

who, on the day of proclamation and after the reading of the same, shall be
present on the ground to be proclaimed, and who sbaU be obliged to present
themselves to the Mining Commissioner or responsible clerk, and to give him
notice, after production of the receipt for personal taxes, that they wish to
take part in t&e drawing.

(4) The drawing for claims takes place on the day of proclamation, and if'

necessaiy on the following days, and shall commence directly after the
reading of the ptxxdamation.

(5) When the number of persons present, who wish to take part in the drawing,

exceeds the number of blocks of 6 (six) claims, blank tickets must be put
into the drum after the tickets on which the blocks of 6 (six) claims in due^
sequence on each ticket have been noted have been placed in it.

(6) The names of the persons who wish to take part shall be placed in drum No*

1, and the tickets with the number and the numbers (six claims) and the
blank tickets in drum No. 2. The official charged wi<^ the drawing shall
have to draw a ticket out of drum No. 2, while an official to be named by
the Head of the Mining Department shall have to dtaw a name out of drum
No. L

(7) The Olaim* Inspector shall be obliged to point out to each person who has:

drawn a ticket representing claims the pegs and the situation of such daima

(8) The Head of the Mining Department shall have to exercise due supervision.

and to instruct the officials from time to time in accordance with these*
regulationi^

Tli«Q6M LaWr

64»

Na 255.

R 8241/95.

GOVERNMENT NOTICK

For general information is herewith pnUished the following Article 1,408 of the
resolntions of the Hon. Second Volksraad, dat^ 27th August, 1895, with regard to
the taking part^in the drawing for claims by youths of sixteen years, which resolution
was accepted as notice by the Hon. First Volkcoaad by Article 1,023 of its minutes,
da^d 28t^ August, 1895» whisrein it was laid dovm that this resolution should come
into force immediately aftqr publication in the StaoUecawnmt.

Gbvemment Office, Pretoria,
29th August, 1895.

DR W. J. LEYDS,

State SeoreUury.

Resolution of the Hon. Second Yolkaraad, Article 1,408, dated 27th August, 1895.

The Second Volksraad, having considered the Qovelmment missive, now on the*
order, including a letter from Field-Comet Botha, and a telegram from |Field-Oomei
Gronj4 with regard to the drawing for claims, now to tdce place, bv youths of
sixteen years, the Second Volksraad, taking into c(msideration that tiiis drawing is a.
special matter, resolves :

That in such special cases youths above the age of sixte^[i years, whose namea
fvppear <hx the Fiela Comet's lists^ and the taxes of whose parents have been paid for
the wrrent year, shall be entitled to take part in the drawing under the following
oopditions: —

(1) Each of them must be provided with a Field-Comet's or Assistant Field-

Comet's certificate, showing the name and date of his registration in the
Ileld-Comet's booka

(2) A certificate from the official undw whose jurisdiction his parents come

showing that the taxe9 of his father or guardian for the current year have
been paid.

(3) Each of them shall be present in person on the day of drawing.

This resolution shall only be of force on places for drawing of lots of claims, and
shall not be applicable in any other case.

•!•••' I

660 Tb« Oold MWi

Appendix C

On the 12th of Jnhe, 1891, J. S. Curtis bought 78 ptbepeeting claims on Turffon-
tein from a certain Bautenback On the 18th of June, the secretary of the Village
Main Beef Q.M. Company, on behalf of which Curtis had acquired the claims, applied
to the Mining Commisisionet of Johannesburg for digger's hcences for the said caima
On the refusal of the Mining Commissioner to grant digger's licences, the secretary
applied for renewal of the prospecting licencea This request was also refused.
Thereupon Curtis, in his capacity of managing director of the said company, made an
application to the Court to compel the Mmin^ Commissioner to renew the licences,
maintaining that the main reef ran through the ground in dispute, and that such
ground was proclaimed ground. The Mining Commissioner alleged that he refused
to renew the licences because in conseouence of a contract between the Qovemment
and the Deep Level Developing and mining Township Syndicate, dated the 29th of
October, 1889, the ground had been reserved for a townwip.

A rule nm having been granted, the Court (KxAzA, C. J., and Jorissen, J.) refused
to confirm it, Kotz^, C!j., said : — " The Court is of opinion that the rule nisi must be
set aside. Assuming that the Mining Commissioner can be ordered, tinder certain
circumstances, to renew prospecting licences, or to change them into digger's licences,
such circumstances are not present here. Under Section 67 of Law 8 of 1889, the
Oovemment has the right to grant stands, provided it be not on gold-bearing ground.
It is here disputed, and it is not known whether the ground is gold-bearing or not
Moreover, the Government has the power to grant a piece of ground larger in es:tent
than the size of a stand, and that under one licence. Of this right the Qovemment
has made use, and there is nothing to show that it has .here made an unfair use of
this power. More especially is this so because the respondent was, and is, in posses-
sion, and the applicant was warned of this fact, and« notwithstanding this, went and
pegged off, well Knowing that months before the ground had been granted to the
respondent llie respondent is entitled to the costs."

Curtis N.O. vjs. The Mining Commissioner of Johanneebfarg, and the JohawMS^
burg Township Compauy, decided on the 12th of August, 1891 (unreported^

The farm Elein Paardekraal was proclaimed on the 11th of October, 1886 with
the exception of such portion as had been beaconed off for a ** mijnpacht," On the
8th of November, 1888, the plaintiff pegged off a claim immediately adjoining the
southern line of the Alexandra '' mijnpacht, ' on the said farm. Some days afterwards
the defendants shifted the southern line of the Alexandra " mijnpacht," so as to take
in a portion of the plaintiff's claim, and shortljr afterwards again shifted the line so
as to entirelv include the said claim in the '' mijnpacht" In an action instituted by
the plaintiff, the defendants were ordered to move the southern line of their ** mijn-
pacht " to the place where it was at the date of plaintiff's pegging, and interdicted
irom committing any trespass on the said claim in the future.

Cathcart vs. The Main Reef O.M. Company, decided on the 25th of Novembep
1889 (unreported), cora/m Eotzl, C.J., and Esselen and De Eorte, J.J.

The dold Law. 66i

The beacons erected at the time of proclamation are the tme boundaries, and they
indicate the position of the ^ mijnpaeht, and not the churt or diagram, when such
does not agree with the beacons.

Substantial damages, assessed by the Court without evidence of special damage*
ordered to be paid bv trespassers who pegged, notwithstanding the fact that they saw
the beacons which had been erected.

Nabob OM. Company vs. Phoenix O.M. Compcmy.^ decided on the 1st of March,
^890 (unreported), corcum Eotz^, 0. J.> and Esselen and De Eorte, J J.

Where certain lapsed claims had beeil bought from the Qovemment, and the pur-
chaser, from whom the defendants, Bamato Bros., derived their title, finding that
some of these claims were not on the line of reef, on the advice of the Claim Inspector
took certain other claims on the line of reef instead, without filing powers of attorney
£or the fresh claims thus taken. Held : That the plaintiff, who subsequently pegged
off the said fresh claims according to law, had a better title to them.

When a lapsed claim is bought, a title is acquired to ia certain definite piece of
ground, and not to any indefinite piece the size of a claim.

Powers of attorney once used for the purpose of obtaining licences for daims
cannot be used a second time, but are, as it were dead.

Underwood va Bamaio Bros, and the Miniug Com/misaion^era of Boksbv/rg^ coram
Kotz^, C. J., and Ameshoff and Qregorowski, J.J.; decided on the 13th of June, 1896,
and reported in the Cape Law Journal^ Vol. xiii.,* p. 226.

Where the Mining Commissioner of Boksburg had provisionally granted an
abdication icr a water-right made by the Oauf Syndicate, and the E^ad of the
Mming Department had returned the said application to the Mining Commissioner to
have a certain discrepancy between the application and the diagram eliminated, and
the plaintiff p^ged Uie ground, which was the subject of the application, before the
pubhcation of Uie amended application. Held, that, as the final confirmation of the
water-right by the Head of tne Mining Department was sftiU pending, the ground was
not open ground and could not be pegged.

Oin^berg vs. The Oauf Syndicate and the Mining CoTmniaaioner of Bokaburg,
decided on the 8tb and 9tn of July, 1896, corami Ameshoff, Morice and Ghregorowski,
J J. (C.L. J. Vol. xiiL, p. 225).

N.B. The application for a water-right in this case was made some time after the
proclamation of the fann Leeuwpodrt

The plaintiff entered into a contract with the first defendant by which he acquired
the right to proapect on a certain farm and the further right to purchase the said
&rm, within a certain period, for a. certain price. The first defendant, notwithstanding
this, sold the farm to the second defendant. The plaintiff sued the defendants for
performance of the contract and rescission of the sale. The first defendant took the ex-
ception that the contract was ab initio null and void because it had not been
notarially drawn. Kote^, CJ^ in delivering judgment^ siuid: ''The only Question
which the Court must decide is whether the contract is ab initio null and void under
thQ Volksraad Besluit of August the 12th, 1886, Article 1,422. We are of ojMnion
that the contract alleged in the summons does not fall under the terms of the y.R
Besluit or under the provisions of Article 14 of Law 7 of 1883. It is only said that
the right tp prQapect or search for ^}^ etc., is granted to the. plaintiff, with the
further right to purchase the farm out' and out. This is not a case of a grant of

652 The Qpld Lnw.

rights to minerals or regarding rights to dig {afstand van regten of rnineralen of
onUreTit regten cm te delven), of which Article 1,422 q[ieaks, nor of a grant of
a right to minerals which are supposed to be present or are actually present on any
farm as laid down in Article 14 of Law 7 of 1883. All that is granted to the plain-
tiff is the mere right to search for gold and other minerals and, whether these are
found or not, the further right to purchase the farm. There is no ^froMt or cesaian of
mineral rights or rights to minemls, and we are therefore of opimon that the excep-
tion must be set aside with the costs."

Pearce v. Olivier and others, decided on the 13th of November, 1889 (unreported),
coram Kotz^, C. J., and De Korte and Ameshoff, J J.

On the 28th of May, 1887, a certain contract was entered into between tiie
plaintiff (and others) on one side and the defendant on the other, one of the clauses
of which contract was as follows; * The owners of and patties interested in the half
farm Welgegund adjoining Oudedorp and transferred to the name of J. ^. EL N.
Bezuidenhout have agreed as follows, — that all rights, profits, and privileges, arising
out of the mineral rights on the said half farm Welgegund shall be divided as
follows, etc"

The plaintiff sued the defendant to have the agreement drawn up notarially m
accordance with one of the terms of the agreement The defendant pleaded thai the
plaintiff was debarred from suing because the agreement on which he sued was not
notarial in accordance with the Yolksraad Besluit of the 12th of August, 1886. The
majority of the Court (Kotz^, C.J., and De Korte, J.) held that judgment should be
given for the plaintiff. Kotz^, C.J., gave as his reasons, (1) that the literal interpreta-
tion of the above-mentioned clause removed the contract from the operation of the
Yolksraad Besluit ; (2) that the circumstances of the case showed that in the above-
mentioned clause no grant of mineral rights, but only a divisicm of the privileges and
proceeds thereof was in the contemplation of the piu*ties ; (3) that even if the said
clause fell within the terms of the Yolksraad Besluit, still the defendant could not be
heard when he attempted to make use of that Besluit to the prejudice of the .plaintifl(
for this would be equivalent to a fraud on him. The action was brought to ocnnpel
the defendant to comply with the terms of the Volkraad Besluit, by executing %
proper notarial agreement as contracted between the partiea De Korte, J., baaedluB
judgment on the last ground above-mentioned.

Esselen, J. (dis&) held that the said clause fell within the terms of the Volksnad
Besluit

Steyn va Bezuidenhout, decided on the 6th of March^ 1890 (unreported).

The Paarl Pretoria Ckmipany, claiming to be the owner of certain claims on the
farm Langlaagte, in Novemoer, 1888, sold all its right to the said claims to the
Central langlaagte Company. In January. 1889, IX>novan, maintaining that the
ground was open, pe^ed off the same claims and instituted an action against tb
Central Langlaagte Company for ejectment The claims were awarded to Donovaa
When the summons was served on the Central Langlaagte Company, this company^
attorney wrote on the 21st March, 1889, to the attorneys of the raarl Pretoria Com-
pany giving them notice of the action, and advising tliat the Paarl Pretoria Comptt^
should intervene, seeing that this company sold the claim to Central Langlaagte Oaat
pany.

The Paarl Pretoria Company took no steps to intervene, and, af terjudgment WM
given in favor of Donovan, instituted an action against Donovan and Wol^ as rwt*

The Gold LaM^. 658

r)9enting the Boyal Lanfflaagte Company, to whom Donovan had in the meanwhile
;^8old the claims. The defradants (Donovan and Wolff N.O.) pleaded Res judicata,
^aad this plea was upheld and the plaintiff held to be estopped from instituting the
■action on the ground that they ought to have intervened in the action of Donovan vs.
The Central £mglaagte Company.

The Paarl Pretoria O.M. Coy. vs. Donovan and Wolffs N.O., decided on the 25th
November, 1889 (unreported), coram Eotz^, C.J., and Esselen and De Eorte, J. J.

On the 2nd February, 1889, certain Scott and Sparks peg^'ed off 12 claims on

Sound afterwards known as Schweizer's Township, and on the 7th February, 1889,
ey pegged off 12 more claims. In April, 1889, those claims were amalgamated in
blocks and registered in the n^me of the Non Pareil Syndicate consisting of Scott,
.Sparks and Thomas Whitty. On the 2nd and 7th of September, 1889, the Mining
Commissioner of Johannesburg refused to renew the prospecting licences, because, as
he stated, he wished to compel the Non Pareil Syndicate to take out digger's licences
instead of prospecting licencea Scott and Sparks alleged that the renewal was
refused because the Government wished to lay out a township on the ground. The
Non Pareil Syndicate made no objection and lodged no protest against the refusal to
TOnew.

On the 21st September, 1889, a contract was entered into between the Govern-
ment and Schweizer, giving the latter the right to lay out a township on the ground
held by him. Schweizer Imd pegged in July, 1889, and he caused a diagram to be
made of all ^ond held by him, which included the 24 claims above-mentioned. In
Jfklarch, 1890, Schweizer caused a sale to be held of the stands laid out by him, but only a
few were sold He thereafter ceded all his rights to Hollard and Van Boeschoten,
who again ceded to the Rand Exploring S^dicate. In 1893, on the advice of a
^vemment Commission, the Government decided to change the stands into claims
•and to issue claim licences to the Band Exploring Svndicato, and the syndicate had to
indemnify the Government against any claims which might be set up by persons who
had previously held portions of the ground induded in Schweizer's Township.
Thereupon the Non Pareil Syndicate sent in a claim for a block of 12 claims, but this
was refus^, and an action was consequently instituted against the Band Exploring
Syndicate in March 1895. After the closing of the pleadings the Non Paren
Syndicate ceded all its rights to the Schweizer's Claimholders Bights Syndicate, which
Obtained leave, with the consent of the defendant syndicate, to appear as plaintiff
The Court found that the renewal of the prospecting licences was refused because the
Mining Commissioner wished to compel the Non Pareil Syndicate to take out digger*8
licences instead, under Article 17 of Law 10 of 1887, and held that this syndicate
must be taken to have abandoned its rights on the ground that it did not protest
either when the renewal of prospecting licences was refused, or when Schweizer put
no the stands for sale. Judgment was, therefore, g^ven for the defendant with costs,
l^e Court considered that the taking over of the rights of the Non Pareil Syndicate
hv the Sdbweizer's Claimholders Bights Syndicate was impeachable on the ground
or champerty, but did not think it necessary to decide the case on that ground.

Schweizer's Claimholdere Rights Syndicate, Ld, vs. jHie Rand Exploring
Syndicate, Ld., decided on the 25th of August, 1896, coram Eotz^, C.J., and
Oregorowski, J., (not yet reported).

Certain persons who alleged that they were entitled to certain claims (127 in all)
<m the farm Tuitfontein» in the possession of the Band Exploring Syndicate, joincKl
with certain other persons present who had no interest in these claims^ and formed the

654 The Qold Law.

Schweizer's Claimholders Bights Syndicate, Limited, with the object of obtaining
posBession of the said claims and working them. The consideration received by those
persons who allefi^ that they were entitled to claims consisted of shares in the
Syndicate, while the working capital of the company, out of which the expenses of
litigation were to be defrayed, was advanced by some ot the other persons who had
no interest in the claims. The syndicate instituted action against the Rand
Exploring Syndicate, and the defendants raised the plea of champerty. The Comrt
held that the articles of association of the syndicate were tainted with champerty and
were, therefore, contra bonos mores, and granted absolution from the instance with
costs.

Schweizer's Claimholders Rights Syndicate, Limited, v& Band Exploring
Syndicate, Limited, decided on the 4th September 1896, coram Eotz^, C.J., and
Amcshoff and Gregorowski, J J. (not yet reported).

The plaintiff, Schuler, had certain j)rospecting rights over certain property. On
the 27th February, 1895, he entered into a contract witii the defendants Sadce and
Saenger, the terms of which were contained in a letter written by Saenger on behalf
of himself and Sacke. According to this agreement Schuler was to receive a certain
sum of money and a certain number of shares on *' flotation, sale, or otherwise " of
the property. On the 24th of September, 1895, the defendants sold all their rights
to George Albu as trustee for a certain company to be floated. The company was
floated on the Ist of November, 1895, under Uie name of the Sacke Estates and
Mining Company, limited. The defendants, while admitting the agreement of the
27th of February, said that the property had never been sold or floated into a
company, but that they had merely sold their rights under the agreement to George
Albu Q.Q., and that, therefore, the Sacke Estates and Mining Company, Limited, stood
in their shoes and would be liable to the plaintiff^ when the property was actually sold
or floated.

Under these circumstances Jorissen, J., sitting at Johannesburg, held that there
had been such a dealing with the property as was contemplated in the agreement and
that, therefore, the plaintiff was entitled to the money and shares claimeoT On appeal
to the full Court in Pretoria this judgment was upheld.

Schvier va Sache and Saenger, decided (on appeal) on the 4th of August, 1896,
coram Ameshoff, Morice and Gregorowski, J.J. (not yet reported).

On the 19th of February, 1895, Jooste, who was the owner of certain 70 claims in
the district of Potchefstroom, entered into an agreement with Carlis, under which the
latter obtained the exclusive right to prospect for gold on these daima It was
further agreed that Carlis should *' have the sole and exclusive right and power of
purchasing, selling, floating into a limited liability company, or otherwise disposing of
the said claims, provided that upon such purchase, sale, flotation, or disposal he
shpuld pay to Jooste ^100 or 100 fully paid-up shares for each claim so disposed of.

It was further agreed that the formation of a syndicate for the purpose of meroly
testing, or exploiting such claims should not entitle Jooste to claim the above-
mentioned consideration.

■

On the 26th of October^ 1895, Carlis ,ceded |iis right or option under the
agreement to Jacob Creewel, William Peter Taylor, and the finja of S. Neumann & Ca
On the 29th of October Creewel ceded his one- third share in the said right or option
to the Klerksdorp Proprietary Mines, Limited. Thereupon Jooste sued Carlis for
£7,000 or 7,000 dhares in the Klerksdorp Proprietary Mines, Limited. It appeared in
evidence that there was an understanding that W. P. Taylor imd S.. Neumann ^ Ok

The <iold Law. 655

would transfer their rights to the above-named company. Carlis contended that the
claims had not been sold, floated, or otherwise disposed of, but that he had merely
ceded his right or option under the agreement of the 19th of February.

The majori^ of the CSourt (Gregorowski and Eleyn, J.J., Morice, J., disa) held
that the plaintiff was entitled to succeed, on the following grounds : — ^That Carlis had
made over all his rights and obligations to Creewel, Taylor, and S. Neumann and Co.,
for value received, but Jooste obtained no rights as against these persons. That it
would be unfair to allow Carlis, by cleverly framing his agreement, to keep Jooste
out of his money for an indefinite time and in the meanwhile enjoy all the 'benefits
which he would have enjoyed in the case of an actual sale. That such was not
the intention of the parties. That the fact that the formation of a syndicate to test or
exploit the claims did not entitle the plaintiff to payment, showed that in this case he
was so entitled, as the defendants did not allege that the Klerksdorp Proprietary
Mines, Limited, was such a syndicate. That Carlis was more or less in tne position of
an agent for Jooste, and therefore in a position of trust That under these circum-
^stances such an alienation as was contemplated in the agreement must be considered to
have taken place.

Morice, J. (dissentiente) held that this case could be distinguished from the case of
Schuler vs. Sacke and Saenger, because in that case Schuler was not the owner of the
ground. He merely had certain rights in personam against the owner of the ground.
When Sacke and !Sa.enger made over their nghts under the agreement of the 27th
February,1895,to the company, they disposed of all the rights which Schuler had possessed
in the groimd, and there remained nothing further which he could have transferred,
and therefore he was entitled to the stipumted consideration. But in this case Jooste
was the owner of the claims, and when Carlis ceded his rights and liabilities to
Creewell, Taylor, and Neumann & Co., he did not transfer Jooate'sjiua in rem in the
claima Jooste could not be prejudiced because the claims were registered in his name,
and he was not bound to give transfer until he received the stipulated payment.
Moreover, the use of the words " assignees " and " successors ** in the agreement showed
that it was contemplated that Carlis could cede his rights. As a matter of fact cessions
of such options were of frequent occurrence as a speculation on the goldfielda As it
did not appear that such an alienation as was contemplated in the agreement had
taken place, his Lordship considered that the judgment should be absolution from the
instance.

Jooste vs. Carlis and Creewel, decided on the 27th of August, 1896 (not yet
reported).

The Plaintiff Syndicate alleged that Alfred Berriman, q.a. the Berriman Syndicate^
on the 2l8t December, 1894, took out 100 licences and peggea off 100 claims on Block
B, on the farm " Draaikraal," district Heidelberg, and renewed the licences till the 21st
of September, 1895. Further, that on the 21st of February, 1895, he took out 115
licences, and on the 4th of March pegged off 115 claims on another portion of the
same Block B, and renewed the licences till the 15th of September, 1895. That in
March, 1895, Simpson, the defendant, lodged a protest against the numbering of the
said claims. That thereupon the Mining Commissioner renised to allow the claims to
be numbered, and in September refused the renewal of the licences.

The defendant alleged that on the 18th of February, 1895, he took out 100 licences
and pegged the ground which the plaintiff alleged Bernman pegged in December, 1894,
and that he still held the claims. That Berriman did not properly peg the ground in
December, 1894, because he erected comer beacons only, and that the plaintiff

p 2

656 The Gold Law.

fraudulently held about 200 claims (viz. the whole of Block B) under only 100 licences.
The 115 claims were not in dispute.

The C!ourt found that Berriman pegged only the 100 claims in December, 1894 ;
that he put in only one centre peg for each claim, and did not put in the comer pegs
as required by law ; and that in February, 1895, he placed an iron sign board at each
comer, of the block of 100 claims. It held that the provision of Article 63 of Law 14
of 1894, with regard to ttoo centre pegs was unintelli£;ible, and that the plaintiff had
sufficiently complied with the law. Further, that as the plaintiff had made a trench
round the block of 100 claims there could be no doubt as to their exact situation, and
that therefore the non-compliance with the provision of Article 63, with regard to
comer pegs within seven days, was not fatal. Further, that the defendant was a
"jumper," and that in a dispute between a "jumper" and a bona fide pegger the
Court would not lightly deprive the latter of his claims on a mere informality, seeing
that the law does not say that such informality shall entail forfeiture.

Judgment was therefore given in favour of the plaintiff for the 100 claims in
dispute with cost&

Berriman Syndicate va Simpson, decided on the 4th of September, 1896, coram
Kotz^, C. J., and Ameshoff and Gregorowski, J.J. (not yet reported).

On the 7th of December, 1894, the plaintiff, Dawe, pegged off 74 claims on the
farm " MiddelvleL" In February, 1895, he gave instructions to have the nound sur-
veyed. On the 8th of March, 1895, the survey took place, and on the 28tin of March
he received the surveyor's dia|;ram. He then for the first time found out that the
ground pegged comprised 105 instead of 74 claima On the 30th of March he applied
to the Kesponsible Clerk at Doomkop, under Article 62/ of Law 14 of 1894, for the
surplus ground, i.e. 31 claims. This application was granted by the Responsible Clerk
on the 6th of April, 1895, whereupon Dawe took out the necessary licences for the
said 31 claims. On the 22nd of March, 1895, Cordeaux having found out that Dawe
had pegged off more ground than his 74 licences entitled him to, provided with licences
went anB pegged off 25 claims on the said ground. He at the same time made applica-
tion for these 25 claims, but the Responsible Clerk refused to give them to him. In
July, 1895, however, these 25 claims were granted to him by the Head of the Mining
Department Dawe instituted an action for a declaration of rights. The Court
assumed that Dawe had acted bona fide in pegging 105 claims instead of 74 under 74
licences, but held that, as he had only 74 licences, and intended to peg only 74 claims,
whatever surplus there was above the 74 claims had to be looked upon as open ground,
and as Cordeaux had properly pegged 25 claims on the 22nd of March, 1895, before
Dawe applied for the surplus gix)und under Article 62/, he thereby acquired a good
title to me said 25 claima The Court further held that as Dawe had pegged first he
was entitled to 74 claims, beginning from the place where he startea pegging, and
that Cordeaux was entitled to 25 claims on the remainder of the ground. Judgment
was therefore given in favour of Cordeaux for 25 claims with costs.

Dawe vs. Cordea'wx and the Responsible Clerk of Doornkop, decided on the 4th of
September, 1896, coram Eotz^, C.J. (not yet reported).

On the 13th of June, 1888, all Government ground in the district of Heidelbere
was thrown open. In March, 1893, the defendants pegged off a certain piece oi

Sound on Vogelstruisbult under 800 licences. On the 10th of April, 1893. the
ining Commissioner refused to renew the licences because there was a dispute
between the Government and one Botha, the owner of Dc^gafontein, as to whether
the ground belonged to the Government or to Botha, ^e Mining Conunisaiooer

The Gold Law. 657

assured the defendants that if it should afterwards appear that the ground was
Government ground they would retain their rights. In February, 1895, it was
settled that the ground belonged to the Government, and the defendants thereupon
on the 9th of March, 1895, renewed their licencea They, however, renewed only 600
licences. On the 29th of April, and 6th and 9th of May, 1895, the plaintiff pegged
off the ground for which the defendants held the 600 licences under 1,173 hcenoes.
After the pegging by the plaintiff, the defendants had the ground surveyed, and
found that it comprised 1,173 instead of 600 claima They thereupon applied under
Article 62/ of Law 14 of 1894 for the 573 surplus claims, and their application was
panted by the Head of the Mining Department in July. Thereupon, the plaintiff
instituted action for a declaration of rights. He allegea that the defendants had no
right to any of the 1,173 claims (1) because they in 1893 abondoned their rights, and
did not peg again in 1895 ; (2) because they fraudulently held 1,175 claims under
600 licences.

The Court held that the defendants did not abandon their rights in 1893, and
that when they renewed their licences on the 9th of March, 1895, their original
pegging was still good. That when the plaintiff pegged in April, the defendants
were in possession of the ground under 600 licences, ana that it was not necessary to
decide wnat would have happened if the plaintiff had pegged before the 9th of March,
i.e.y before the defendants obtained renewal of their licences. Further, that although
the defendants had pegged ground comprising 1,173 claims under 600 licences, there
was no intention to aefraud, and no one was prejudiced, and that therefore the
defendants were entitled to 600 claims. With regard to the 573 remaining claims,
the application for them was not granted (or made) until after the plaintiff's pegging,
and consequently at a time when the ground was no longer open. Further, that, as
the defendants had been the first to peg, they were entitled to choose their 600 claims
first, and for this purpose they were allowed fourteen days, and that the plaintiff was
entitled to the remaining 573 claims. Defendants were ordered to pay costs.

Nevhauer vs. Van Diggden and WUson decided on the 4th of September, 1896
coram Kotz^, C. J., and Ameshoff and Gregorowski, J. J. (not yet reported).

On appeal from the decision of the Landdrost of Johannesburg, the Court held
that digging a furrow to carry off water and cleaning it was sufl^ient working of
the claims by the company holding them, and set aside the judgment of the
Landdrost.

Henry Nourae Q. M, Coy. vs. Eland, decided on the 5th of July, 1889, cora/m
Kotz^, C. J., and Jorissen and De Korte, J.J. (unreported).

A person digging for gold on a proclaimed goldfield, under the Qold Law of 1875,
without a licence, is a wrong-doer.

A gold-mining concession, granted by the Government and confirmed by the
Yolksraad, provided that all diggers at present digging on the farm embraced by the
concession shall be compensated : — Hda, that this did not entitle the diggers to peg
out and work new claims on the farm, after the granting of the concession, and that
they must be interdicted from so doing.

CHXbaud and Go. vs. Walker and others, decided on the 4th of December, 1883,
coram Kotz^, C.J., and Burgers and Brand, J.J. (Kotz^'s Reports, 1881-1884,
page 82).

Digging for gold without a licence renders the digger a tresspasser under the
Gold Law of 1875.

658 The Gold Law.

By virtue of the Volksraad Resolution of 11th June, 1883, Article 269, no one
can di^ for^ gold on private property without the consent of the owner or
concessionaire.

Cohen, Ooldachmidt, dk Co, vs. Stcmley and Tate (Eotz^'s Reports, 1881-1884,

Eige 133), decided on the 28th February, 1884, cora/m Eotz^, C.J. and Burgers and
rand, J.J.

A gold concession, granted to the respondents, contained a clause providing that
all diggers on the farm, over which the concession was granted, shall be entiUed to
compensation, and in case the concessionaires and the diggers should not come to an
agreement on the point, the Government shall fix the amount of compensation. The
applicant, as digger, moved the CSourt for an order directing the respondents to pro-
ceed to arbitration as to the amount of compensation : —

Held, that the application must be refused, as there was no allegation that the
applicant had applied to the Government to fix the amount of compensation.

Stanley va Ooldachmidt Jk Co. (Kotz^'s Reports, 1881-1884, page 155).

Resolution of the Honoubable Fibst Volksraad, Article 1,261,

DATED 25th August, 1896.

The First Volksraad, having regard to the Government missive, dated 12th
instant, and to all the memorials referring to the so-called underminine rights, at
present under discussion ; considering that the First Volksraad, by Article 1282 of
the 20th September, 1895. postponed this matter in order to hear the opinion of the
public thereupon, and that the great majority have delared themselves in favour of
reserving these undermining rights for the owner and also for the State : considering
that digging under townships, storage stands (bewaarplatsen), etc., was always for-
bidden oy the old Gold Law, Article 21, resolves to continue to maintain the prohibi-
tion clause (of Article 121 of the Gold Law of 1895) until such time as it shall appear
necessary to the First Volksraad and to the Government to suspend the said prohibi-
tion clause, and thereupon to allow the working of such grounds under regulations
framed by the First Volksraad, and subject to this proviso, that, when it is decided to
do so, the preference with regard to such undermining rights shall be given to the
highest bidder at a public sale, and half of the proceeds of such a sale shall, after
deducting expenses, oe awarded to the Stato and the other half to the lawful owner
of such farm or ground, or his lawful heirs, and in the event of a special agreement
having been made with regard to the licence monies, the person thus acquiring rights
shall be entitled to the owner's half.

The Gold Law.

66^

COEEESPONDING AETICLES
Of thb Gold Laws of 1894, 1895, and 1896.

Law 21 of 1896.

Law 19 of 1806.

Uw 14 of 1804.

Article. Article.

Article.

JL • • • • a

• • • a

• • a •

... 89 and 72a

• • a «

a a a a a a OO

• • • •

a a • a a a OO

a • a •

aa. 90

a a a •

• • a •

a a a a a a ~^^

.a at

a a a a aa O

• • a •

a a a •

• • a «

... 26a

• • a •

a a a •

27a

t • • a •

... 28

• • a a

28b

a a a 1

• a a 1

a a a a a a 04

> a a a a

... 31

1 a a a a

> • • a a

... 28a

> a • a <

a a a a a a OO

> a • a 1

... 26

t a a a 1

t • • a <

» • • a

aaa a aa O

> a a* a a

'... 12

> a • a 1

28 and 52

a. a 18and21£

» a . . <

• a a a a

aaa 23a

> a a at

a a. 24

> a a a 1

... 24a

t a • a (

24b

■ a a a 1

aa. 50

• • a a

59a

> a a a 1

. a . 36

> a a a

aaa .a* Ot7

• a a a

aaa ,,m OO

• a a a

t • a a

» • • a

t • • a

a #• a

• a • a

660

The Qold Law.

Law 21 of 1896.
Article.

45
46
47
48
49
50
51

28
52
53
54
55
56
57
58
59
60
61
62
63
64

65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82

(2Qd part of Article)

83
84
85
86

Law 19 of 1895.
Article.

45
46
47
48
49
50
51

52
53

54
55
56
57
58
59
60
61
62
63
64
65

66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84

Law 14 of 1894.
Article.

6c
10

17 and 14
11
13
15

22a

20a

20b

20c

59b

28c

28d

61a

62a

62b

62c

62d

62e

62£

62^

62E

62i

75a

(Deleted from Law 21 of 1896).

oO ••• ••• ••• fO

(Deleted from Law 21 of 1896).

oO ••• ••• ••• Of

Of ••• ••• .•• OO

OO ••• ••• ••• oil

o9 ••• ••• ••• oXD

The Gold Law.

661

Law 21 of 1896.

Law 19 of 1895.

Law 14 of 1894.

Article.

— .

* .* .*

• • •

■ . *

• • *

(Deleted from Taw 21 of 1896).

• • •

• • • •

• • •

« ■ •

• • • •

• • • .

» ■ • ■

. • * *

■ • •

• ■ • •

• • • •

* • • .

» • •

* ■ . ■

• • •

67a

> • • '

• • •

100

30a

> • •

. • •

101

> ■ • •

. • •

102

1 • •

• • • .

103

52a

100

1 • • •

. ■ •

104

52b

101

1 • •

• t •

105

52c

102

• ■ • '

• • •

106

52d

103

■ • •

. • •

107

52e

104

> • ■

■ • •

108

52f

105

• •

• • •

109

62g

106

• •

• • •

110

52h

107

• •

...

111

62i

108

• ■

• • •

112

37a

109

» . •

• • •

113

110

• •

...

114

111

. ■

• • •

115

112

. •

» • •

116

113

* •

...

117

114

a •

...

118

115

1 • •

...

119

116

t • •

• . •

120

30b

117

» . •

...

121

118

. •

• . •

122

21a

119

• •

• * *

123

21b

120

• •

• . •

124

-ilc, 21d, and 21e.

121

. •

• • •

125

21g

2ir

122

• •

• • •

126

123

. •

■ ■ .

127

21m

124

• •

• • •

128

21 n

125

> • *

• . •

129

126

• •

• * •

130

127

• •

• • •

131

128

■ •

• * •

132

129

1 • •

* • .

138

130

1 • ■

...

134

131

• • •

...

135

132

. . •

...

136

133

• • •

137

662

The Cold Law.

Law 21 of 1896.

Taw 19 of 1895.

Law 14 of 1894.

Article.

Jlo^ ••• ••.

. •• loo •••

• • • • • * ^^*j

135

• • • J.Ot/ • .•

. • • . • • ^t7

136

140

• • • • • • oo

lof ..• ..•

141

86a

loo ••• .*•

. • • 1*V^ • • •

• • • • • • oO

1(5«7 ••• ...

• • • ^fvO • • •

• • • 66a

L*§M ... ...

• • • Jl JTJb • • •

• • • • • • • ^B

141

A^ A • • • ...

» • . X^^O ...

• • • • • • ox

■Lfv*! • • • • • •

* • • X ^\/ • • •

• • • »• a O 1

JL^fO • • . ...

147

>•• ••• Do

JL M S . . • ...

• . • XtvO . • •

• • • • •• 02/

X ^O • • • • • . .

t . « X 4£f • • •

>•• ••• IX

146

> • • 1 dU ...

1 . • • • • 1 XHr

ji V 1 ... ...

» • • XOl . • •

> •• • •• 1 ^

XtsO ... • • •

1 • • XOJi * • •

> • • • • •

14*9 ... ..•

1 * • 1 Ot> ... •

150

• « X 04 • • •

• • . • • • ■

lOl » • • ,. .• «

.. 155

• • ••• 7o

xOJi ... • •• •

.. 156

• • ••• / 17

153

• • lOl • • . .

• . • • . OV

l«^4 • •• • •• •

4, 158

• • • • • OO

155

. • l0«7 ... •

• • • •• i/X

Note. — ^Article 61c of Law 14 of 1894, dealing with provisional prospecting licences, and Articles 82
and 82a of the same Law, dealing with transfer duty, are not included in Law 19 of 18i95.

Article 78 of Law of 1895 is partly deleted and partly dealt with in Article 77 of present Law.

Articles 84 and 85 are deleted, but a portion of the subject dealt with comes under Article 77 ol
present Law.

Article 90 of Law of 1895 does not appear in the present Law, but is dealt with under Article 88.

The Gold Law*

668

ALPHABETICAL INDEX TO LAW 21. 1896.

Abakdokmbnt :

Of claims

When licences for abandoned claims may be refused

Sale of abandoned claims

Of tailings ... ... .#. ... .#«

Alluvial:

Articles 64 to M not applicable to alluvial goldfields

-Number of alluvial claims capable of being held by digger on eaeh proclaimed

*cU^Ul ••« ••• ••• ••• ••• ••« •••

Double licence money for claim containing both reef and alluvial gold

Extent of alluvial claims ... ... ... ... ..«

Protection for alluvial claims... ... ... ... .^

Protection during commando

Amalgamation : .

When joint claimhc^ders of amalgamated block entitled to peg one more claim

^XM#XA ••• ••• ••• ••• •»• •••

V/X Ci&UUO ••• ••• ••• ••• ••• ••• •••

Does not elapse through licences being changed

Appkal:

From Special Landdroet ... ... ...

Mini

AmoLiopLAW.

... 83, 86 (note)
83

127 (note)
>*. 66

From Mining Commissioner to Head of Mining Department
11

From Mining Commissioner ...
From Mining Commisi
From Claim Inspector

ARBITRATION ;

In case of expropriation...

In case of damage to gardens or plantations by prospectors ...
In case of damage through construction of dams, roadways, &c
In case of closing of prodaimed ground ...

67
68
81
88
87

67
70
70

11, 18
15, 18
60
82

7
58
60
62

627,629
627
627
638

623

624
624
626
630
630

624
624
624

601,603

602,603

619

627

600
618
618
619

Barbed Wire:
Forbidden

(••

BxAooNS :

Of mijnpacht... ... ... ... ... ...

Holder of mijnpachtbrief responsible for maintenance of beacons of mijnpacht

Angles of proclaimed ground must be indicated by square beacons ...

Sides of proclaimed ground indicated by round beacons

On Government ground erected at State expense

Written notice to owner to erect beacons

Penaliy for altering or removing ...

.BXWAARFIjAATBBN «•« ••• ... ... .*. •••

626

608

618

613

140

640

628

664

The Gold Law.

Bezitrbcht :

Indisputable...

Notice calling for objections to grant of
Certificate of .. .

Action to be instituted within three months after decision of Mining Commis-
sioner re bezitrecht...
Certificate of bezitrecht in aocorduice with judgment of the Court
xransieroi ... • •■• ,,, .., ••• ..<

Application for certificate of bezitrecht in writing...
When former leeal proof of bezitrecht defective
No certificate of bezitrecht for water-rights where irregulariticb exist ...

BiiiLs OF Costs

BOILEB InSPECTOBS

tncLB OP Law.

Paoi.

108

834

110

834

634

112

634

113

635

115

635

116

685

116

685

128

688

603

601

Bridge :

Over water-furrow

138

640

• •• • • •

••• •• •••

Certificate :

Of payment of personal taxes

Of special registration

Of bezitrecht ... ... ... ... ... ...

Of bezitrecht in accordance with judgment of the Court
Application for certificate of bezitrecmt in writing

Claims:

Definition of

Number of '* vergunning " claims

Discoverer of precious metal, ftc , entitled to six claims ...

Number of owner's claims

Prospector's claims pegged before proclamation

Pegging of claims by means ci holaer of power of attorney ...

Number of claims capable of being held on each proclaimed farm ...

Extent of alluvial claims

Extent of claim for digging for precious stones

Extent of quartz reef claim ...

Permission to fence ... ... ... ... ... ...

Abandonment of ... ... ... ... ... ...

When licences for abandoned claims may be refused
Sale of abandoned claims

Debris from, must not be a nuisance to other diggers ...
When claims lapse to Government
When lapsed claims may be pejgged again ...
Belonging to estate of deceasea person ...
Special registration of ...

Specially registered claims cannot revert so as to be held under prospecting
ucencos ... ... .•• ... ... .. ..»

Sale of Specially registered claims
Mortgage on specliSly registered claims*

Claims:

Penalty for altering or removing beacons of

Wilful injury to

Wilful pegging of another's claims

Claim Inspector:
Salary of

Duty of, with regard to claims
Appeal from...

Closing :

Of proclaimed ground

• •• ••• «•«.

••• •%•

••• ••• •••

65
100
111
113
116

3
19
46
47
48
64
65
67
81
81
81
81
83

83
84
86
86
89
99

101
102
104

140
141
142

14
82
82

622
632
634
635
635

599
603
613
613
613
622
622
624
626

626
626
627
62»
628
628
629
629
630
632

633
633
633

640
610
640

602
627
627

619

The Gold Law.

665

•«« ••• •••

•• 0 ••• •••

COLOUBED PeBSON :

Definition of

May not be licence-holder

Purchasing unwroaght precious metal, etc., from ...

Selling unwrought precious metal, etc.

Must have pass

Leaving service without permission, or using insulting langpiage to master

Commando :

Protection for claims during ...

CSOMMISSION :

Appointment of

Enquiry by, in case of undermining rights

boMMONAOE :

Proclamation of

Compensation :

On expropriation ... ... ... ... ...

To chiefs and their people on proclamation of locations ..
For damage by prospectors to gardens and plantations
In case of making dams, roadways, etc.
On clobing 6f proclaimed ground

Concession :

No concessions on Government ground ...
Holders of, may permit others to dig

Concessionaire :

Right to grant permission to dig on concessions, etc., and notice to be given to
Grovemment official

Abticlb op Law.

Paoi.

599

632

151

643

152

643

153

643

154

643

10
119

630

601
636

615

600

616

618

618, 619

619

610

611

jJABm ... ... ... a a. ...

DSBBIS :

From claim must not be a nuisance to other diggers

Deceased Pebson :

Claims belonging to estate of

Definition :

Of public diggings
Of claim

• • •
• • • • • •

Of private ground...
Of Government ground ...
Of coloured person
Of unwrought gold

. . t

... . .

... ...

... ••.

••• *••

•. . •■• •.

^•.» ... ...

... ^.. ...

•••

Diagram :

Deposit of diagram of claims under digger's lioence within six montbs
Approval of, by Surveyor-General ...
Extension of time for sending in
Penalty for not depositing

Of developed diggings

Duplicates of approved diagrams ...

A^l AJttvl^ XK> ... ... ... ... ••■ ... ...

Diggers :

^ On ground under mippacht must take out licence
On ground under mijnpacht under jurisdiotion d Mining Cemmissioner...
Must assist in maintaining public order

3
3
3
3
3
3

74
74
76
80
109
114

618

628

630

599
599
599
599
599
599

625
625
025
626
634
635

599

611

143

641

666

The Gold Law.

AmcuopLiw.

DiGOEBs' Claims :

Article 74 to apply to digger's claims pegged before taking effect of this law

DiGOEBs' Licences:

XvwK XOIiO& wX ••• •« ••« ••• ••* ••• •••

Mining Commissioner decides where necessary

Mining Commissioner has right to change digger's licence to prospecting

XlCOIlwO «•• ••• ••• ••• •«« «•• «•«

Working of one claim sufficient except where claims previously held nnder

diggers' licences
When payment of, on specially registered claims six months in arrear
In case of undermining rights

DiGOING:

Where not to be carried on
Without licence ...

••• ••• •••

••• •«• ••«

15,54,

Discoverer:

Of precious metals, etc., at least six miles from already worked locality may
beacon off six claims ... ... ...

Has first rieht to peg off claims ... ... .«•

Shall not lose his rights through unwillingness of Government to proclaim

KTwUUl* ••« ••• ««• ••« ••• ••• ••#

Has all rights of ordinary digger
Use of water by

Of payable gold reefs on proclaimed diggings entitled to twelve claims without
powers of attorney

Discovert:

Of precious metals, notice of

Disposal:

Of precious stones, etc.
Of surface of ground ...

••« ••• •••

• • • • • ft

Division :

Of mijnpacht ... ... ... ... ... ...

Of mijnpacht on renewal after expiry

New mijnpacht-brief issued on division of unexpired mijnpacht-brief

19
85

603
628

67,

85 624, 628

85
102
120

628
633
686

117
149

602, 616, 636
642

47
48

613
614

49
50
50

614
614
614

1
90

32
33
33

624

606

599
630

609
609
610

Electricity:

Permission to lay conductors for electrical currents

Exemption:

From payment of licence money in case of unhealthiness of district
Duration of ... ... ...

Expropriation:... ... ... ... ..

88
88

619

680
680

600

Fees:

Payment of ... ••• ••• *••

Fence:

Permission to fence claims

Barbed wire forbidden

Removal of fence put up without permission ...

Fieldoornet:

Must certify power of attorney

Must certify that holder of power is entered on his list ...

Fines:

Payment of ... ..•• ... ...•

... •••

••• •••

...

•••

.k.

•••

81
81
81

65
65

604

626
627
627

604

The Oold Law.

667

Gardens :

When proclaimed ground may be given oat for

GOVXRNMBNT G&OUND :

Definition of

No conoeeeions on ... ... ..

Grazing :

On commonages not to be interfered with
On locations ...

Amau or Law.

Paul

618

8
34

509
610

52
53

615
616

HxAD OF Mining Department :
Qualifications of ...

High Treason :
Penalties

144

601

641

Import Duties :

Collection of

Imprisonment
Injury :

Wilful injury to claims, etc. ...

iNSPEcmoN :

Of registers ... ... ...

Of bc^ks showing finds on mijnpacht
Of diagrams in case of special registration of claims
Of diagrams in case of application for bezitrecht . . .
Of plans in case of application for n'ater-right

Insurrection :

On proclaimed fields

141

604
600

640

603

608

100

632

110

634

131

639

144

641

Jurisdiction :

Of Special Landdrost ...

Of Landdrost ... ... ... .••

Of Mining Commissioner

Limits of jurisdiction of Mining Commissioner

In case of legal proceedings with regard to special r^stration of claims

Justices or the Peace :

Mining Commissioner
Responsible Clerk

■/.<

Landdrost:

Has no civil or criminal jurisdiction where there is Special Landdrost
When Landdrost may issue prospecting licence

Lapsing :

When claims lapse to Government
When lapsed claims may be pegged again
Of water-right ... ...

Laws and Customs :

Applicable in Court of Special Landdrost
In Court of Mining CommissioDer

11
11

100

601
601
602
603
632

15
21

602
604

11
85

601
629

134

629
629
639

11
15

601
60S

668 The Qold Law.

Abticlb op Law. Pass.

Lkase :

Of mineral rights, to be notarially drawn and registered ... ... 31 606

Legal Practitionsbs :

Licences of ... ... ... ... ... ... 17 603

Leoal Proceedings :

Within 10 days of notice of objection in case of special registration of claims ...
To be instituted within 3 months after decision of l£ning Ctommission re
bezitrecht

Lessee :

Of mineral rights entitled to mijnpacht-brief ...
Water for use of ...

Licences :

For grounds unaer concession or mijnpacht ...

Issu^ by Responsible Clerk

Not required by owner to prospect on his own property before proclamation ...

To be taken out by digger on ground under mijnpacht

Discoverer of precious metal at least 6 miles fn>m already worked locality may

work 6 claims without licence
Every white male person of full age entitled to prospecting and digger's licences
On private ground and Government ground
Prospecting and digger's, when necessary
When renewal of postponed ...
Suspension of

When licences for abandoned claims may be refused
When renewal of prospecting and digger's licences shall be refused
Mining Commissioner decides where prospecting and where diggers's licence

necessary >.. ... ... *... ... ...

Mining Commissioner has right to change digger's licence to prospecting licence 67, 85
To be produced on demand
Stand licence on proclaimed field
On specially registered stands

Licences :

In case of underminine rights

Sjpecial licence for trading in unwrought precious metals, etc.

Trading without

Prospecting or di^ffing without

Pegging claims without

Licensed Digger :

Entitled to a stand for his dwelling ... ... ... ... 92 631

Licence Holder:

Cannot dispose of surface of ground ... ... .. ... 90 630

Licence Monet :

Owner gets half ... ... ... ... •••

Double for claim containing both reef and alluvial gold
No licence money payable during absence on commando
Exemption from payment of, in case of unhealthiness of district

Locations :

Proclamation of ... ..

Searching for precious metals on ...
Grazing rights, * * kraals, " and water on . . .

Machine Stands ••.

Machinery :

Wilful injury to .^

100

632

112

634

606

617

603

604

605

611

613

621

624

626

627

628

,85

624,628

,85

624,628

630

631

106

633

123

637

145

641

149

642

149

642

149

642

51
68
87
88

614
624
630
630

52
53
53

615
616
616

632

141

640

The Gold Law.

669

Marriages :

Powers of Special Landdroet with regard to ...
Powers of Mining Commissioner with regard to

Married Women :

Must be assisted by husbands

Merger :

Of rights of owner and lessee

MUITPACHT :

On homestead grounds ...

Angles of , indicated by stone beacons ...

May be transferred

Division of

Deed of transfer of , to be stamped

Sale in execution of

iivenewai oi ••• ... •■• ... ..» •.. •••

Renewal of, in favour of lessee

Division of, on renewal after expiry

Localities where working by individual dig^rs is not payable on Grovemment

ground may be given out under mijnpacht
Extent of ground under
Applications for ...
Oojections to granting of
JL iciusier OI ... ••• •«• ... ... ...

Localities where working by individual diggers is not payable on private

CTound may be given out under mijnpacht
Holders of, may permit others to dig

Diggers on ground under mijnpacht under jurisdiction of Mining Commissioner
May be granted on locations ...
Stamp on application for

Mijnpacht-Brief :

Xwegisver ox ... •.* ... ... ••• •••

May be obtained bv owner

May not be refused

Duration of ...

Renewal of

When pavment for, is in arrear

When it Lapses

Holder of, responsible for maintenance of beacons of mijnpacht

Lessee of mineral rights entitled to

Conditions on which granted

New mijnpacht-bHef issued on division of unexpired mijnpacht-brief

Not renewed if ground not worked

Extent of ground under

MuyPACHT-HOLDER :

Shall receive three-fourths of licence money ...

Muteral Rights:

Lessee of, entitled to mijnpi^ht-brief ...

MiKiNO Commissioner:

Aeticlb op Law.

11
15

• • • • • «

• • • • • ,

Salary of

Salary of clerk to ...

Powers of

May define where digging shall not be carried on ...

Where more than five stands adjoin, must consult Government re further licences

Collection of personal taxes ...

Jurisdiction ... ••• .. •**

Ex officio Justice of the Peace

Laws and customs, to be applied by

Appeal from

Powers with rega^ to marriages ...

...

... ••*

•••

...

Paob.

601
602

622

609

607

608

609

610

611

616

624

603

607

608

610

611

28,53

607,616

611

608

... •••

... .••

... *. •

601

602

15,18

002,603

602

670 The Gold Law.

Abtioli or Law.
MiNiNO Commissioner — corUinned :

Limits of jurisdiction of ... ... ... ... 16 90S

Registers to be kept by ... ... ... ... 10 608

Responsibility of ... ... ... ... ... ... 21 004

Must see that no one digs or prospects without licence ... ... 22 004

Must see that records are kept of all cases ... ... ... ... 22 004

That all Government buildings are kept in good order ... ... 22 004

That import duties are collected ... ... ... ... ... 22 004

That stamp and transfer duties are paid ... ... ... 22 004

As to payment of fees, fines, etc. ... ... ... ... ... 22 004

Oath to be taken b^ ... ... ... ... ... 23 005

May grant permission to make dams, roadways, etc. ... ... ... 00 018

When referee ... ... ... ... ... ... 60 010

Appeal from, to Head of Mining Department ... ... ... 00 « 010

Decides where prospecting and where digger's licences necessary ... 67, 85 624, 028

Mining Inspectobs ... ... ... ... ... ... 0 001

Minors :

Residing outside Country cannot peg by powers ... ... ... 05

Mortgage :

On specially registered claims ... ... ... ... ... 104

On specially registered stands ... ... ... ... 107

Notary :

Lease of mineral rights to be notarially drawn ... ... ... 31 006

Oath :

To be taken by Mining Commissioner and other officials ... ... 23 005

Officials :

Further judicial, jialary of ... ... ... ... ... 11 flOl

Prohibited from holding claims, &c. ... ... ... ... 24 005

Owner:

Right of, to prospect on his own property without licence ... .» 25 005

Can give permission to prospect ... ... ... ... 26 606

May obtain "mijnpacht-brief" ... ... ... ... ... 28 607

May peg off owner s claims before other diggers ... ... ... 48 608

Gets na& of licence money ... ... ... ... ... 51 614

G^ts three-fourths of proceeds of stand licences ... ... ... 51 614

Accounts to be made out in name of ... ... ... 51 614

Water for use of ... ... ... ... ... ... 65 617

Grounds occupied by, must be properly enclosed ... ... ... 56 617

* *

Owner's Claims :

Number of *.. ••• ••• ••• ••• ... 48 613

Payableness :

State Mining Engineer judge of ... ... ... • ... ... 27 607

Pass :

Coloured person must have ... ... ... ... ... 153 643

Pegging :

Between sunset and sunrise forbidden ... ... •• ... ••• 72 624

Also on Sundays, &c. ... ... ... ... ... 72 624

Ground within pe^ of claim or " mijnpacht " may not be pegged ... ... 84 6S8

Wilful pegging otanother's claims ... ... ... 142 fHO

Pegging claims without licence ... ... ... ... ... 149 642

The Qold Law.

671

Articui of Law.

Paob.

• ••

• • •

626

• ••

626

• •.

• ••

626

• ••

• *•

627

• • •

• ••

627

Pios:

C/Cntrftl .... .••• ... ...

Corner pegs after 7 days
Comer pegs of amalgamated .claims
Height of corner pegs ...
Notice board on comer pegs

Permission :

From owner to prospect

Personal :

Appearance in Court •*,

xTDPBS ... ..• ... •«. ... ••• ,,, ,,,

Plantations:

When private proclaimed ground may be given out for
Ground given out for, may not be used for other purposes

• » •

Police Force:

Establishment of

Power of Attorney - .

Pegging claims by meaAH of holder of ...

Not more than 12 claims may be peggjed under power from one person

Male persons of full age residing outside the country may peg claims by means

of holder of
Must be notarially drawn
Women and minors residing outside the country cannot have claims pegged by

means of holder of
Discoverer of payable gold reefs on proclaimed diggings entitled to 12 claims

without .. ... ...

Precious Metals :

Notice of discovery of, trithin 7 days ...

Precious Stones:

Extent of claim for digging

rt'

President :

Powers of

Can proclaim ground

Private Ground :
Definition of

Proclamation :

Of ground by President...
After 6 weeu' notice

id*

••• •*•

Notice of, to be posted at office of Mining Commissioner
To be published m ** Staats Clourant " at least 30 days
No pegging of claims before reading of

If owner does not prospept or allow others to prospect, his ground cannot
proclaimed ... ... ... ... ...

3 months* notice of , to owner ..«

Before proclamation grounds must be surveyed
Of town commonages and native locations
Prospector's claims pegged before proclamation

•••

Proclaimed Diooinos;

Discoverer of payable gold reefs on, entitled. to 12 claims without power

aviiomey..* ... ... ... ... ...

Proclaimed Farm:

Number of o&aims capable of being Jbeld on each ... m

4.5
25,39

606

603

618

58
59

618
618

599

65
65

622
622

65
65

623
623

623

624

605

626

599, 600
605, 611

599

25,39

605, 611

612

615

622

624

672

The Gold Law.

Pboclaimed Ground:

Government may use portions of, for public pnrpoaes
When it may l>e given out for gardens and plantations
When it may be closed ,,.
Stand licences on ...
Insurrection or rebellion on

Pbofessional :

Licences, register of ... ... ... .^

Pbosfectino :

Right of owner to prospect without licence on his own property

Permission to prospect by owner

If owner does not prospect, or allow others to prospect, his ground cannot be

proclaimed
Where forbidden ...

Articui op Lav.

Pasi.

•»••

618

• *.

.••

618

...

619

*••

• •.

631

...

... 144

641

... ...

... .••

... . • * .•• ...

... ... •••

... ••. ...

... ..

... •••

Fbospbctino :

Without licence

On unproclaimed Government ground ...

Pbospsctino Licences:

Mining Commissioner decides where necessary

Mining Commissioner has right to change digger's licences to prospecting
licences ... ... ...

When Landdrost may issue

Specially registered claims cannot revert so as to be held under

Psosfbctor's Claims :

Pegged before proclamation

Pbotbction:

For reef or alluvial claims

For reef or alluvial claims during commando ...

Public Diggings :

Definition of ... .. ... ...

Public Purposes:

Government may use portions of proclaimed ground for ...

603

25
26

605
606

40
54. 117

612
616, 636

149
149

642
642

19
67
67,85

608

624

624, 628

101

628
209
633

622

•••

• ••

630

...

630

...

599

• ••

• ..

618

Quartz:

Removal of from claim of another

139

610

Rebellion :

On proclaimed fields

Records:

Of all cases to be kept

Registers:

To be kept by Mining Commissioner
To be kept by Responsible Clerk

Registration :

Of transfer of claims and stands ...
Special, of claims
Special, application f or . . .

Regulations :

Power of President to draw up

144

641

604

19
21

603
604

100

682
632
682

600

The Gold Law.

673

Renewal:

Of " mijnpacht "

When renewal of proepectiDg and -digger's lieencee Bh^Ube refused

When renewal of ucenoes for stand may be refused

When renewal of licenoes may be refused ...

Repeal :

Of conflicting laws- ... ••• ... ••• ... ••• ... ...

Responsibilitt :

Of Mining Commissioner ... •

. . . a • • • •

Responsible Clerk :

Articlb op Law. Paax.

33 609

83 628

94 631

83, 118 628, 636

Assignment of stands to
Issues licences
Keens registers

lOS

... ... ..* ...

... .• ... ... ...

... .. ..a •••

• *.

Sends monthly statements to Mining Commissioner
May be invested with powers, pf Justice. of the Peace
Duties of ... . ..... ...... ....

Returns:

Sending in of

HsvENUS:

And expenditure ...

Roads:

On commonages not to be interfered with
Road-ways

'Salary :

Of Mining Commissioner
Of judicifu officials

ISale:

Of ' ' mijnpacht " in execution

Of abandoned claims

Of lapsed claims after three months

Of specially r^'stered claims

Of lease in case of undermining rights

Scope:

v^i m »T ... ... ... ... ... ...

'Searcher's Claims :

Registration of to be effected by Mining Commissioner or Landdrost

'Security:

In case of undermining rights

Servants:

May not be paid in un wrought precious metal, ftc.

Not being coloured persons, using insulting language to master

• • •

'< Sketch : ....

Of situation of claims to be deposited within one month ...

^Special Landdrost:
Jurisdiction of

Laws and customs applicable in Court of
Powers with regard to marriages
Appeal from ...

jTSfecial Registration :

Of claims
Application for

148

122

160
154

... ... ...

... ...

... ... ...

• t •

...

600

604

642

603

• ••

...

615

• • •

...

618

•

...

.».

.. .

• a.

601

• ••

...

• ••

601

. . .

...

609

...

....

629,

630

•f

• *.

..•

»..

629

...

•••

102

633

...

..•

...

120,

124

636

599

624

637

643
644

625

11 601

11, 18 601, 603

... ... ...

. .. .. ... ..

99
100

632
632

674

The Gold Law.

• •• •• •

•• • • ••

Aetioli or La
Sfbcial Registration — continued:

Specially registered claims cannot revert so as to be held under prospecting

licences ••• ••• ••• ••• ••• ••• Xva

When payment of digger's licences on spedally registered claixos six months in
an^ear ••• ••• ••• ••• ••• ••• •••

Sale of specially registered claims

Article 102 applicable to digger's claim for the special registration of which
application has been made

Mortgage on specially registered claims... ... ... •••

Of stands on proclaimed ground ...

Licences on specially registered stands ... ..

Mortgage on specially registered stands ... ... »••

Spiksters:

Entitled to have claims pegged off

Stamp Duties :

Payment of ... ... ... ... ••• ... ...

On certificate of bezitrecht ...
On application for water-right

Stands:

Where more than Hve adjoin...
Assignment of, to Responsible Clerk

OuOIage ... ... ... ... ... «.•

Licenced digger entitled to a stand for dwelling

When stancb form a town

Transfer of portions of ...

Machine Stands ...

Special registration of, on proclaimed ground

Licences on specially registered stands ...

Stand Licences :

Owner gets three-fourths of proceeds of
On proclaimed field

State Mining Engineer :

lyuties ot ... ... ... ,,. ,,, ,.,

Judge of payableness

Statements :

Monthly, to be sent by Responsible Clerk to Mining Commissioner
Monthly, to be sent to Treasurer-General

Storage Stands

Sunset :

Pegging between sunset and sunrise forbidden

SlTRFACE :

Licence-holder cannot dispose of surface of ground ... .^

Surplus Ground :

Application for
Licence for ...

Survey :

Of ground before proclamation

Surveyor-General :

Approval of diagracms by ... ... ^

Surveyors :

May enter on ground belonging to others

Penalty for oratructing ... ... .^

Must supply Head of Mining Department with copies of diagrams

Paoi

63$

102

633

102

633

103

633

104

633

105

633

106 "

633

107

683

622

604

116

636^

130

638

602

604

628

631

63^

105

633

106

633.

614

631

601

607

604

628

624

630

77
77

626
685

612

625

78
78

qBbD

62S
62S

The Gold Law.

675

Suspension :

Of Articles 118 to 124 ...

AEncLi or Law.

Appendix A & 155

Pass.

645, 644

••• . .
••• •••

Tailings:

Workers of, entitled to water-right.

Abandonment of

Taxes:

Personal, collection of .., .

„ certificate of payment of

Town :

Portion of revenue from proclaimed town commonage to be used for improve-

U-lCKw Ox ••< ••• ••• ••• ••• •<•

When stands form a town . ... . ,., . ... ... . ...

Town Comhonaoks :

Proclamation of ... ... ... ... ..... ...

Trading :

In un wrought precious metal, &c.
Without licence ...

Tbansfek:

Of portions of stands .... ...

Of oezitrecht

Tbeasureb-Gbnebal :

Monthly statements to be sent to ...

Tbees :

On commonages not to be removed

Trenches:

To indicate sides of proclaimed ground
For claims ...

... ... *.•

... •• • .

>i.

127

127 (note)

637
638

15
65

602
622

52
94

616
631

615

145
149

641
642

95
115

631
635

604

615

613
627

Underhinino Rights :

Grant of ... ...

Enquiry by Commission
To whom granted...
In case of public squares, &C.
Security to be deposited
Licence in case of

Unwbought Gold :
Definition of

Unwrouoht Precious Mxtalb :

No trading in, without special licence

Being in possession of

Licensed dealer in, must keep proper books ...

Persons despatching, must send in declaration

Servants mav not be paid in

Purchasing from coloured persons

Selling of, by coloured persons

...

>.. ...
...

I . . ...

118
119
120
121
122
123

636
636
636
637
637
637

599

145

641

146

641

147

642

148

642

150

643

161

643

152

643

Verounning:

Bv owner to prospect
Claims, number A

26
46

606
613

676

The Gold Law.

Vested Rights

Articlb of Lai
6

Paol

eo(k

Water:

'ppecioi
No encroachment on rights to,

Use of, by discoverer of precious metals, etc....
No encroachment
For use of owner

on commonages

• • • • •

••• •••

••• •• • ••

•• • •• •

Tor use of lessees and servitude holders...

No action for making water muddy in course of mining operations..

Distribution of ... ■ .... ...- ...

No ownership of running

Value of, not taken into consideration in estimating damages

Running water may not be dammed up

Wateb Fubbow :

Bridge over ... ... ... ...

Wateb-kights :

DLHXfXiU ••. ... .•» ... ..r ...

Who entitled to ...

No certificate of bezitrecht for water-rights where irr^pdarities exist
ited unless connected with claims, etc.

...
••. •<* ••*

... ... ...

Not

£cations

^antof
Confirmed by Head of Mining Department ...
For motive power . . ;
Lapsing of ...

JNot Rrani
Appucations for
Oojections to errant of

••• ■•• •••

••• ••» •••

Widows:

Entitled to have twelve claims pegged ...

Wood:

Permit to cut ..^

May not be cut for trading purposes

For domestic use

... ... ...

*• < •.•

••• ... ...

WOBKING:

Of one claim sufficient

Except where claims previously held under digger's licences

Regulations for safe working in case of undenmning rights ...

125

126

135

138

126
127
128
129
130
131
132
133
134

136
136
137

124

6H
615

617

637*

637

639-

640

637
637
638
638
638
639
63r
639
639

622

639
639
640^

628
62a
637

XVII

Extracts from the
Netherlands Railway Report for 1896

(Report pvJbliahed at ATnaterdam).

EXPLOITATION.

On the Ist January, 1896, the following lines were in exploitation :

Krugersdorp-JohannesbuTff

Johannesburg-Elandsfontein

Elandsfontein-Springs

Mid Vaal River, Elandsfontein .

Elandsfontein-Fretoiia

Portuguese border-Pretoria

Kaapmuiden- Avoca ...

Natal Border Junction (South line)

Total

In the course of 1896 were brought in exploitation :

Avoca-Barberton
Krugersdorp-Frederickstad

So that on the Slst of December, 1896, were in exploitation ... 1075 672

On the 11th of January, 1897, the section Frederickstad-Potchefatroom was alsa
opened for service, length, 25 kilometres or 16 miles, so that now 1,100 kilometres or
688 miles are being worked.

Again, our service of exploitation has had to cope with an extraordinary expansion
of traffic, and the time has not yet come when it is possible to concentrate attention
on the improvement and perfection of the service. The bringing into working of the
new lines and the organisation of the service on the lines newly opened, constantly
occupied a great deal of the working power of our staflf.

On some parts of our system the train service was extended in such a way that
it was considered necessary for safety's sake to take special precautionary measures.

On the Eastern line as well as on the Southern line the number of crossing
stations was augmented considerably.

Length.

KUometresi.

HUM.

472

295

256

160

963

602

678 Netherlands Railway Report, 1896.

Besides the third railway track between Johannesburg and Elandsfontein, of
which mention was made in the preceding report and which was almost completed
during this year, it was resolved, principally in connection with the coal traffic, to aouble
the rail section, Elandsf ontein-Brakpan, 20 kilometres. The extended train service on
the section. South- Eastern line to Elandsfontein, over which the Natal traffic,
as well as the Cape traffic, goes, necessitated the doubling of that rail section, of
which the completion may be looked forward to in 1897.

The fact, that daily, 120 trains enter the station Elandsfontein and as many
trains leave that station, that severed of those trains are split or coupled on at that
station, that passenger trains have to wait there for junction, because the trains from
the directions Delagoa Bay, Natal, Cape Colony, Springs and Klerksdorp, join there,
makes that station, as regards external service, the most important in the whole of
South Africa. Thanks to a well-studied system of signals, this station is safe, but
delay is oftentimes unavoidable there. In order to remedy this, the station will be
freed from a portion of the traffic, by the building of a connection-curve between the
south and the west, by which it will be possible to bring trains with goods
exclusively destined for Johannesburg and the stations situated more westerly
and coming from Natal or the Orange Free State to their destination without
entering the station.

This so-called " fork " is ready now.

Besides these works of greater extent, the chapter " extension works," appearing
elsewhere in this Report, will give an idea of the continual activity in this direction
and also on other points of our system.

Our wagon yard also underwent, in connection with the rapid increase of the
traffic, a considerable enlargement. In the course of the year we were obliged to
increase the regular despatch of freight wagons from 100 to 150 per month, which
was continued till far in 1897 ; 59 new locomotives were shipped, while the current
order comprises the sending of 41 others for October, 1897.

The drastic measures for the strengthening of the traffic power of our lines made
it possible for us to pretty well fulfil the requirements of the traffic, and our service
might — taking into consideration the extraordinary circumstances — be called regular,
were it not that a period of mishaps and calamities had marked the year 1896 as
particularly unfavourable in this respect. We will come back to this subject in a
following chapter.

The working of our goods service at Johannesburg, where the arrivals of foreign
goods from the three chief directions principally concentrate, was a continual source
of much trouble, although this year no mention is to made of blocks ; and though our
powers threatened to fail, the extension of our works and appliances, and cuso of
our staflf, proved to be in accord with the increase of the traffic.

A new difficulty presented itself when the principal of our two delivery contractors
at Johannesburg wished to be discharged from his obligations, and when we were
forced to take this portion of the working of our service under our own direction.
This alteration however, only came into operation on the 1st January, 1897.

If we thereby undertook an extensive business with which technical difficulties
are connected, on the other hand the gain is, that we are not dependent on a contractor
independent of our service, and have it in our hands to act in the promptest manner
in case of the often abnormal and rapidly changing conditions in Johannesburg. That
Mr. Van Stipriaan Luiscius, head of traffic and business affiurs at Johannesbuig,

Netherlands Railway Report, i896. 679

completely knowing the requirements of the delivery service, declared himself ready
to take on himself the conduct of it, made this undertaking very easy for ua
As far as can be judged of the results, we have every reason for satisfaction.

The passenger traffic, although standing much behind the goods traffic as to
importance, constantly develops at Johannesburg and surroundings, and assumes great
• dimensions

In inland traffic the number of passengers went up from 912,198 in 1895 to
1,271,509 in this year.

Of this amount 328,766 departed from the stations of the Rand tram and from
the stations between Pretoria and Elandsfontein.

From Johannesburg about 1,000 passengers per day left by local trains, besides
the passengers on the direct service with the Cape Colony, Louren90 Marques, and
Natal.

In the whole year there were carried in direct service : —

From Cape Colony and Orange Free State ... ... 93,850

From Louren90 Marques

» n if

From Natal
To

84,533
9,482
12,703
49,593
52,280

Coming into the Republic ... ... 152,925 passengers.

Leaving „ „ ... ... ... 149,516 „

These figures, however, do not give a very exact idea of the immigration,
because the traffic of the coloured people (for the greatest part kaffirs) is of an alto-
gether different character from that oi the whites.

In the traffic with Louren90 Marques and Natal, the whites travel exclusively in
in the first and second class, and, from the figures of the incoming and outgoing pas-
sengers, it appears that along both these routes 1346 whites less have come into the
Transvaal than have left it

In the traffic with the Cape Colony and Orange Free State to whites direct
third class tickets are given ; whereas, on our line, the tariff of the coloured people
class has been adopted. While in that traffic 36,023 passengers, first and second class,
have come in, and 34,344 have left, 43,067 whites arrived with above-mentioned third
class tickets in the South African Republic, and only 26,525 passengers left it

The increase of the white population, therefore, consists almost wholly of persons
who are carried in the lowest class and, on our line, at the tariff of coloured
persons. As was to be expected, the opening of the connection with the Natal South
Eastern line has brought an alteration in the division of the harbour traffic.

The traffic via Durban was constantly increasing during the whole year, and like-
wise the traffic via Louren5o Marques, but less quickly. The traffic of the
Cape Harbours, however, remained almost stationary. It was, in the middle of the
year, higher than the year before, but in the latter months it began to fall off.

This natural division is very satisfactory, and confirms the expectation that the
increase of the number of lines would not have a crushing effect on the existing ones,
and that all would get a traffic, often so great that an increase- of it has to be looked
forward to with anxiety.

680

Netherlands Railway Report, 1896.

The following small table gives an idea of the development of the direct traffic;
with the connecting railways : —

GOODS TAKEN OVER (IN TONS).

MONTHS.

1895.

1896.

Port
Border.

Natal
Border.

O.F.S.
Border.

Total.

Port
Border.

NatAl
Border.

O.F.S.
Border.

Total.

January

t4000

12600

16600

8500

8000

12600

29000

February

1500

11600

13000

11000

8500

21600

41000

March

3600

13500

17000

11500

12500

19000

43000

April

6500

15000

20500

11500

19500

42500

May

6000

19000

25000

12600

15600

28000

56000

June

5000

18500

23500

9500

18500

25600

53500

July

5500

22600

28000

12500

17500

29000

69000

August

9000

24600

33500

14500

19500

23600

57600

September

8000

•

19500

27600

13500

21000

21500

56000

October

7500

• • •

25000

32500

12500

20500

21000

55000

November

8500

2500

29000

40000

16000

18500

20500

54000

December

8000

2600

24500

36000

12600

17500

16500

46600

t Block in traffic through collapse of Cape Bridge.

Taking into consideration that among the goods imported via the Natal and
Orange Free State border, is much produce of the African soil, while this is not the
case via the Portuguese border, it will be clearly seen what a considerable portion of
the foreign traffic the harbour of Louren9o Marques has already attracted.

By some increase of hauling power, the Portuguese portion of the line was able
to cope with the growing traffic in a fairly 8atisfa<;tory way, but still nothing was
done for the improvement of the harbour works at Louren90 Marques.

It is known to us, that big works at Louren9o Marques, constantly form the
subject of enquiry, but nothing is yet to be perceived of any attempt to construct them.

The exploitation of the successively opened portions of the KJerksdorp line (South
Western line) gave in the beginning no unsatisfactory results. Sight must not how-
ever be lost of the fact, that through the rinderpest, the transport per ox wagon,,
which in these parts, through the situation of the principal places, is uie most suit-
able, was totally stopped, and it is not impossible that this has influenced the
results of the exploitation.

The service can be done with one mixed train per day in each direction.

Netherlands Railway Report. 1896.

681

TRAFFIC.

This branch of our service, as has already appeared from the preceding, has
caused considerable trouble in connection with maintaining adequate arrangements for
dealing with the increasing demands of the service.

The usual service for the maintenance of the lines, on the older lines, more and
more approached a normal condition, as the finishing and ballasting of the portions
more recently brought into use was completed.

The condition of the rails, buildings, and works cannot be otherwise spoken of
than with satisfaction.

The constantly increasing demands on the arrangements for the safety of trains
and stations, made it necessary to establish a separate section for signalling and tele-
graphy, of which the organisation came into existence in the past year.

The scarcity of water, by which the whole year was marked, necessitated con-
siderable extensions of our works for the supply of water.

TRAFFIC STATEMENTS.

The following table gives a comparative statement of the results of our exploita-
tion during the last three years : —

1896.

1895.

1894.

Average length in exploitation

1,004

754

445

Number of day kilometers . . .

367,464

275,210

162,333

„ train „

5,467,453

2,701,868

1,608,557

„ passengers, 1st class

471,301

296,614

137,462

2nd „

490,455

371,979

327,002

„ coloured people ...

603,643

399,732

232.991

„ Government passengers

8,551

2,273

901

Baggage (English pounds) . . .

5,699,186

3,056,258

1,562,885

Packages „ „

7,480,814

4,691,351.

2,915,333

Parcels „ „

28,462,953

22,204,004

6,228,825

Normal goods „ „
Intermediate goods „

777,476,948"]
295,334,169J

542,468,639

403,003,351

Bough goods ,^

2,373,531,522

1,677,778,727

1,145,144,513

682

Netherlands Railway Report, i896.

The proceeds amounted to : —

Passengers and Baggage
Ooods and Cattle ..

Telegi"aph
Import duties
Sundries ...

Total

£ a. d.

610,141 2 7

1,945,229 17 5

5,186 18 3

242,198 3 8

100,759 18 6

2,903,516 0 5

£ & d.

329,562 13 5

1,031,626 0 4

3,813 19 3

137,337 2 3

47,731 18 0

1,550,071 13 3

£ s. d.

152,415 3 3

523,966 6 5

2,263 15 11

56,536 9 5

62,200 7 0

797,382 2 0

Under sundries are to be understood the extraordinary receipts from the traffic,
the profits accruing from leases of bars, bookstalls, etc., rent of houses, depositing
places, rolling stock in use by contractors, etc., also the payment for the use of our
pier at Louren90 Marques.

For the first time the returns of the Elerksdorp line are included in the returns,
and this to the amount of £13,951 10a Id.

... £1,197.841 18 8
868,297 15 2
388,239 15 10

The costs of working were in 1896
These were in 1895 ...
And in 1894

Finally we give here a comparative statement of the principal traffic figures : —

Returns per kilometer length
Returns per day kilometer
Returns per train kilometer
Cost per train kilometer ...
Traffic cost in % to receipts

1896.

£2,891 18 11
7 18 0
0 10 7f
0 4
41-26%

1895.

£2,055 15 11
5 12 8
0 11 5i
0 4 lit

48-49%

1894.

£1.791 17 5

4 18 3

0 9 11

0 4 10

48-68%

FINANCIAL STATEMENT.

The unexpectedly rapid increase of the traffic on our lines compelled us, in case
we wanted to satisfy the just requirements of the public, to extend in the most solid
and quickest way our engine and waggon-yard, to enlarge many stations and to lay
double lines on the busiest sections.

As the money necessary for those disbursements had to be obtained from the
reserve fund and the Volksraad decided that doubling of rails, as an extension, had
to be charged to that fund, the disbursements exceeded the receipts of the fund and
the credit balance included therein.

Netherlands Railway Report, 1896. 683

By resolution of the Volksraad of 8th December, 1896, we were authorised to
issue a loan of not more than 13,200,000f. (£1,100,0(>0), and to charge the reserve
fund with the interest and amortisation thereof.

The extraordinary meeting of shareholders held on the 9th of January, 1897>
approved of the proposal of the Direction to raise a loan of 4%, amounting to
13,000,0001, or 21,970,000 reichsmark, and to redeem the 8,815,0()0f. still standing
out in 5% obligations of the loan of 1891, unless the holders were satisfied with a
reduction of interest from 5% to 4%, commencing on April 1st

Almost all the holders availed themselves of the opportunity of having their
obligations converted.

Political sti*uggles which set in in the meantime made us resolve to postpone the
issue of a portion of the new loan for a while.

Under the heading " Floating Goods," all goods are included whith are sent from
Europe and have not yet arrived in Africa on December 31st, or had not yet been put
together and rendered fit for use. Under that heading an amount of 938,636f.
(£78,219 13s. 4d.) appears for locomotives and carriages, which are to be charged to the
reserve fund, as also the whole amount of 3,547.352-37f. (£297,862 13a lid.) for
works and construction, being the extension works which were uncompleted on
December 31st.

The obligatory redemptions of loans, which are deducted from the balance of the
exploitation account, amounted to 208,000f. (£17,333 68. 8d.) in 1896.

The fixed amount of 214,839'63f. (£17,903 6a Id.) has been paid into the
reserve fund of the tramway this year, but out of that fund 622,737*25f.
(£51,894 15a 5d.) for extensions and 26,741*051 (£2,228 8a 5d.) for extraordinary
repairs had to be paid. The said reserve fund remained in debt to the Company^
418,704-89f. (£34,892 la 6d.)

3,285,473*46f. (£273.789 9s. Id. were paid into the reserve fund of the railway,
but out of it 722,509-70f. (£60,209 2a lOd.) were paid for extensions ; 147,542-80f ,
(£12,295 4s. 8d.) for extraordinary repairs; and l,795,87105f. (£149,655 18a 5d.)
for locomotives and rolling stock.

There was on December 31st still 1,871,563901 (£155,963 13a 2A) in the fund,
therefore much less than required to make the extensions appearing under " Floating
goods " and " Works in construction."

An amount of 259,310f. (£21,609 3s. 4d.) will be paid this year into the amortisa-
tion fund. This amount, increased bv a balance of that fund not. invested, appears in
the balance sheet. The South African Republic appears as creditor this year to an
amount of 6,576,000f. (£548,000), being the amount given for the building of the
Ellerksdorp line.

This year two items appear under the charges, which we hope will never occur
again. The one, amounting to 89,529'60f. (£7,460 16a), is a donation to the victims of
the dynamite explosion in Johannesburg on February 19th, 1896 ; the other, amount-
ing to l,824,000f. (£152,000), was given by us to the Government's (commission as a
contribution for compensation for the damage caused by this explosion.

According to Article XXXIII. of the Concession, after the obligatory interest and
amortisation of the loans, the contribution towards the amortisation fund and the
guaranteed dividend have been deducted from the balance of the account an amount
of 10,409,873-04»f. (£867,489 8a 5d.) remaina According to Article XXXIV. of the

«84 Netherlands Railway Report* 1896.

Concession, 90 per cent thereof has to be paid out, so that as extra profit an amount
of l,040,987'30f. (£86,748 18a lOd.) remains, to which has to be added another amounb
of 35,050'82f. (£2,920 18a) brought forward from the year 1895 as undivided

We submit to you as a recommendation the desirability of setting apart
l,050,000f (£87,500) of this amount as a payment of 7J per cent, extra diviaend
on all shares, and to carry forward 26,038-12*f. (£2,169 16a lOd.) to the new account.

If you approve of this, it will be possible to pay a further dividend on July Ist
of 97*50f. (£8 28. 6d.) on the shares oi the second series and of 105f. (£8 15a) on all
other sharea

The following may be given in explanation of some of the headings in the
^balance sheet

As the Nat^al line and the branch-line to Barberton were completed in 1896, it was
possible to close the construction account of our main line and of the Natal line and
include it under the heading : " the Railways,'* which now appears in the balance
sheet for an amount of 67,405,451 •75f. (£5,617,120 19a 7d.)

In this amount is comprised 2,081,483-231 (£173,456 18a 9d.) for extension
works, which proves that in 1896 an amount of 722,509-70f. (£60,209 2a lOd.) has
been spent on works completed on December 31st.

The completed extension works on the tramway required an expenditure of
i622,737'25f. (£51,894 15a 5d.), by which amount that heading has been increased.

On the building of the KJerksdorp line 5,329,870*991 (£444,155 18a 4d.) was
spent in 1896.

The value of the goods in the inventory increased by 422.644-791 (£35,220 7a lOd.)
principally through the opening of the new lines and of new stations, but also
through the increase of machinery in the Central workshop at Pretoria and the
furnishing of new appliances for the providing of water.

The number of locomotives was increased by 59 to the value of l,776,769*30f.
-(£148,064 2a 2d.), and that of the vehicles comprising various carriages and wagons, by
1,369, to the value of 2,935,4011 (£244.616 15a); for the increase of our locomotive
and wagon stock, 749,769301 (£62,480 15a 6dO and 1,046,101751 (£87,175 2a lid.)
were respectively charged to the reserve fund.

Appendix 6 gives a specification of the locomotives and carriages, which our
49tock consists of. Of these, however, 8 locomotives and 471 carriages were not
brought into use on the December 31st

The stock account decreased by 762,140*501 (£63,511 14s. 2d.) through the
realization of stocks ; on the other hand the deposit and " short bill account " increased
by 1,904,8001 (£158,733 6a 8d.)

The financial results of the year 1896, the fruit of extraordinary exertion and
heavy labour under often unfavourable and disheartening conditionig afford an idea of
the expansion of the traffic in a country, which nine years ago made its first modest
trial in the construction of a tramway along the goldfields m order to be able to
-extend the gold industry by supplying cheap coal.

Our company has existed for ten years, and has had, in that comparatively short

Netherlands Railway Report, 1896. 685

period, to surmount many difficulties, to endure many trying periods, but its pro-
iroerity has surpassed all that the most optimistic partisan for railway exploitation in
the South African Republic has ever dared to imagine.

A word of thanks to the director, who has had such a difficult task in the work
of management in Africa, and to the head and other officials who have assisted him
so stoutly and zealously, is certainly not misplaced here, nor is the wish that all of
them will retain the ability and the desire to continue to protect the interests of the
Company in the same way as in the past

We give hereunder a comparison of the receipts, according to telegraphic state-
ments, for the first four months of 1897, when an average of 1098 kilometers were in
^exploitation, and of 1896, when that average was 963 kilometers.

In those first months of the current year the English press treated the public to a
series of statements regarding the sad condition of the gold industry, but the figures of

f)ld outputs and railway receipts appeared to be completely in conflict therewith,
hose statements appeared more to point to a disap[)ointment with respect to the
profits made by goldmining companies than to a shrinking of the gold industry itself.
A state commission has been appointed to ascertain the causes of this disappointment,
and to indicate in what way things can be improved.

The co-operation of our company, for the attaining of the object in view, can be
xelied upon.

Receipts fob the First Four Months.

1897.

Railway revenue

Import duties

Coal Mine, Springs .„

January.

£240,750

24,050

4,100

February.

£233,850

22,550

4,300

March.

£260,950

33,050

4,500

April

£240,060

35,540

4,500

Total

Bmlway revenue

Import duties

Coal Mine, Springs ...

£268,900

189(

£155,100

13,900

3,100

£260,700

£195,100

16,100

4,500

£298,500

£194,500

18,300

4,700

£280,100

£206,500

16,900

4,900

Total ... £172,100 £215,700 £217,500 £227,300

686

Netherlands Railway Report, 1896.

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INDEX.

Paob.
Absorption of European money by railways and taxation ... ... ... ... 59

Abuses, suppression of ... ... .. ... .. ... ... 180

Administrator Chief of Pass Law, appointment of ... ... ... ... 264

Administrator Chief of Pass Law necessary ... ... ... ... 205

Administrator Chief of Pass Law, duties of .. ... ... ... ... 294

Administration of laws on Rand must be altered ... ... ... ... ... 429

Administration (State), control of personnel of ... .. ' ... .. 236

Administration (State), inefficient ... ... ... ... ... 285

Administration, Government system of, requires to be reformed ... ... ... ... 428

Administration, Netherlands Railway ... ... ... ... ... ... 283

Administration of law against gold thefts ... ... ... ... ... ... 116

Administration of Pass Law 48, 49, 61, 63, 65, 103, 109, 118, 219, 255, 257, 260, 267, 285, 290, 294, 297

Administration of Pass Law, further complaints of Association of Mine Managers regarding ... 258

Administration, identical, of all districts under Pass Law necessary ... ... ... 295

Administration of Liquor Law 5, 12, 18,49, 110, 114, 115, 116, 132, 184,219, 255, 258, 267, 278, 361, 376, 449

Administration of Liquor Law unequal ... ... ... ... ... 361

Administration (New Primrose Mine), reduction of costs of ... ... ... 76

Advantages of rich mines to the whole mining industry ... ... ... ... 10

Advantages of comjjetition in trade ... ... ... ... ... 21

Advantages of low rates to railways ... ... ... ... ... ... 21

Advantages to mines of reduction of railway rates ... ... ... ... 19, 332

Advantages, industrial, derived by the Transvaal from the South African Explosives Company 382

Advisory Boards ... ... ... ... ... 96, 110, 132, 143, 182, 234, 252

Agriculture ... ... ... ... ... ... 285, 286, 418, 419, 430, 447, 455

Agriculture dependent on mining industry ... ... ... ... 285,372,430,431

Agriculture and the mining industry ... ... ... ... ... 419,420

Agricultural Department, an ... ... ... ... ... ... 447

Air Compressor, price of, at English cost price and when delivered in Johannesburg, with extracts

of charges... ... ... ... ... ... ... ... 97

Air Compressor originally bought in England, analysis of costs of, when delivered in Johannesburg 98

Air Compressor, percentages of charges on home cost of ... ... ... ... 99

Air Compressor, comparison of rates of Cape and Netherlands Railways for transport of ... 99

Alaska Tread well Gold Mining Company, comparative table of prices for stoi'es at, and at Crown Reef 21 1

Alaska Treadwell Gold Mining Company, comparative working costs of, and of Crown Reef Gold

Mining Company ... ... ... ... ... ... ... 212

Alaska Treadwell Gold Mining Company, cost of total stores per ton milled at ... ... 211

Alaska Treadwell Gold Mining Company, favourable working conditions of ... ... ... 210

Alaska Treadwell Gold Mining Company, working costs of ... ... ... ... 2IO

Albu, Mr., evidence of ... ... ... ... ... ... ... 9

690 INDEX.

Pao.

Albu, Mr., interrogation of Mr. Phillip by ... ... ... ... ... 383

Allotments, small, preferable to locations ... ... ... ... ... ... 229

Allouez, comparative working costs of, and of Atlantic and Osceola Outcrop and Tamarack Deep

Level Mines ... ... ..■ ... ... 245

America, comparative cost of living for miners in, and on Rand ... ... 151, 419

America, the bonus system in ... ... ... ... ... ... 422

America western, comparative salaries and wages of higher grade and lower grade mine employees

on Rand and in ... ... ... •... ... ... ... ... 421

American mining camps and cities, percentages of excess of cost of living on Rand over cost of

living in ... ... ... ... ... ... ... ... ^1

American mines in Rocky Mountains and Pacific Slope States, comparative working conditions of

Witwatersrand mines and ... ... ... ... ... ... ... 415

American Mines, comparative timbering in Rand and ... ... ... ... 416

American fields, comparative working costs of Witwatersrand mines and of quartz lodes of ... 416

American ores, comparative hardness of .... ... ... ... ... 417

American lode mines, water in ... ... ... ... ... ... ... 416

American mines, comparative expense of fuel on ... ... ... ... ... 417

American railway rates — see Rates.

American railways, transport of coal on, in 1892 ... ... ... ... ... 154

American railways, ownership of ... ... ... ... ... ... 231

American railways, dividends of, in 1892 ... ... ... ... ... ... 154

American railways, actual cost of carriage on, per ton per mile, from 1887 to 1890 ... 154

American railways, construction and control of ... ... ... ... ... 239

American railways, cost of equipment of ... ... ... ... ... 283

Amortisation of capital outlay of South African Explosives Company, expenses of ... ... 411

Amortisation of capitals of gold companies ... ... ... ... ... 129

Angelo Mine, working costs of ... ... ... ... ... ... ... 101

Angelo Mine, grade of ... ... ... ... ... ... ... 104

Anglo-French Farrar Group of Mines ... ... ... ... ... ... 95

Anglo-French Farrar Group of Mines, grade of ... ... ... ... ... 101

Anglo-French Farrar Group of Mines, reduction of white labour on ... ... ... 101

Annual saving possible (by reduction of working costs of mines) ... ... ... 141

Association of Mine Managers, complaints against Pass LaW made by ... ... ... 257

Association of Mine Managers, further complaints of, regarding administration of Pass Law... 258

Association of Mine Managers, petition of, and of Chamber of Mines and of Association of Mines

regarding Pass Law ... ... ... ... ... ... ... 258

Association of Mine Managers, suggestions for ... ... ... ... ... 299

Association, Johannesburg Mercantile — we Mercantile.

Association of Mines, petition of, and of Chamber of Mines and of Association of Mine Managers

regarding Pass Law ... ... ... ... ... ... ... 258

Atlantic Mine ... ... ... ... ... ... ... 244,248

Atlantic Mine, comparative working costs of, and of AUouez and Osceola Outcrop and Tamarack

Deep Level Mines ... ... ... ... ... ... ... 245

Atlantic Mine, working costs of, from 1888 to 1894 ... ... ... ... ... 248

Atlantic Mine, working costs of, for 1895 ... ... .. ... ... 249

Atlantic Mine, value and profit of ... ... ... ... ... ... 245

Aurora West Mine, dividends of ... ... ... ... ... ... 19

Australian price of dynamite ... ... ... ... ... ... 372, .«1

Automatic discharge tracks disallowed by Netherlands Railway ... ... .. 55

Automatic wagons, monthly economy obtainable in off-loading by means of... ... ... 135

INDEX.

691

Baooino of coal

Bagging of coal, cost of

Balmoral Mine, capitalisation of, per claim

Bantjes Consolidated Mines, losses of, through desertions

Barberton, price of coal at ...

Barbei*ton, price of dynamite at ...

Barberton, possible price of dynamite at

Barberton, comparative cost of explosives at and on the Rand

Barberton, cost of living at...

Barberton, percentage of gold from

Barberton, native labour difficulty at ...

Barberton roads

Barberton, percentage of cost of labour at, to total working coetB

Bamato group (of mines)

Bamato group, dividends of companies of

Bamato group, development of mines of

Bamato group, situation of mines of ...

Bamato group, capital of crushing mines of

Bamato group, capital of seven non-crushing mines of

Bamato group, costs of development of crushing mines of

Bamato group, costs of development of seven non-crushing mines of

Bamato group, stamps hung up on mines of

Bamato group, stamps running on mines of

Bamato group, mills idle on mines of

Barrow, Mr., evidence of

Beira railway rates

" Bewaarplaatsen "

Blacks, employment of, in factories

Blasting materials

Blasting materials, free- trade in

Board, Advisory

Board, Licensing

Board, Local, able men required for

Board, Local, representing the mining interests, advisable for administration of Pass and Liquor

Laws and of matters regsurding gold Uiefts ... ... ... 49, 110, 115, 116, 132, 184, 456

268,278

... •«. ... ... vO

... ... ... ... mt%9%M

... ... ... ... 1«51, ^oo

Paos.

317, 337

148, 155

... 110

363

362,442

363

... 369

365

... 105

363

396

172

... 317
128

... 231

342

96, 110, 132, 143, 182, 234, 252

Board, Protection

Board, Mining, reconmiended, its nature and advantages

Board, Sanitary ... ... .«

Board, Sanitary, rates

Boards — ttte. Board.

Bogus companies

Bogus flotations ... ... ... .. ... •••

Bogus flotations. Chamber of Mines willing to co-operate with Government to prevent ...

Bogus flotations, law to prevent

Boksburg district, average number of boys registered under Pass Law in

Boksburg district, proclamation of, under Pass Law

Boksburg district, rebates on Johannesburg (railway) port rates ...

(( Bonanza " assays

Bonanza Gold Mining Company, amount and percentages of working costs of, from September to

x^ecemoer, xovo ... ..* ..• ••• ••* ••• «•. ...

127,446

109

294

136

692 INDEX.

Pam.

Bonanza Gold Mining Company, loss of, on unrecovered premiums paid for native labour ... 118

Bonus system, ... ... ... ... ... ... ... 91,119,219,422

Bonus system, and the Catlin shaft ... ... ... ... ... ... 423

Bonus system, economy of ... ... ... ... ... ... 91,93,^3

Bonus system in America ... ... ... ... ... 422

Bonus system, hypothetical comparative cost of three deep level shafts of Simmer and Jack East

on time wage respectively, and ... ... ... ... ... ... 424

Bonus system, objections to ... ... ... ... ... ... ... 426

Bonus system cheaper than time wage system ... ... ... ... ... 426

Bonus system, principle of, desirable in native as in white labour .. ... ... 427

Bonus system, principle of a. Republican principle ... ... ... ... 427

Bonus system, saving in working costs by ... ... ... ... ... ... 424

Bonus system, saving to capital account by ... ... ... ... 424

Bonus system, saving in pro rata net product of time gained by ... ... ... ... 424

Bonus to personnel of Netherlands Railway ... ... ... ... 327

Bonus to, estimated, personnel of Netherlands Railway for 1896 ... ... ... ^.. 320

Bonus to personnel of Netherlands Railway in 1895 ... ... ... ... 320

Bonuses, division of ... ... ... ... ... ... ... ... 91

Bonuses, amount of ... ... ... ... ... ... 92

" Boom budgets " ... ... ... ... ... ... 238

Boys, average number of, registered under Pass Law in Boksburg district ... ... 109

Boys, average number of, registered under Pass Law in Johannesburg district ... ... 109

Boys, average number of, registered under Pass Law in Krugersdorp district ... ... 109

Boys, total number of, registered under Pass Law ... ... ... ... ... 109

Brakhan, Mr., statement of... ... ... ... ... ... 182

Brickmaking concession ... ... ... ... ... ... ... 284,289,457

jDricJvs, price ox ... ... ... ... ... ... ... ... ssBif

British Columbia, average developing wage per shift of white miner in ... ... ... 149

British Coiumbia, wages in the mines of ... ... ... ... ... 157

British India, price of No. 1 dynamite in ... ... ... ... ... ... 381

Brochon, Mr., statement of ... ... ... ... ... ... ... 178

Brown, Mr. W. R., evidence of ... ... ... ... ... ... ... 362

Budget, equalisation of ... ... ... ... ... ... ... 71

Buffelsdoom Estate and Gold Mining Company, schedule of European wages of, March

and April, 1897 ... ... ... .. ... ... ... .. 377

Buffelsdoorn Estate and Gold Mining Company, schedule of stores consumed at, March and

aXUI^IX, X O V /... ... ... ... ... ... ... ... oi9

Buffelsdoom Estate and Gold Mining Company, working costs of, inclusive of mine redemption and

Johannesburg office charges, March and April, 1897 ... ... ... 380

Buffelsdoom location ... ... ... ... ... ... 230,376

Buluwayo, price of dynamite in ... ... ... ... ... ... ... 411

Burgher population, duty of mining industry towards ... ... ... ... 279

Burgher population must be increased ... ... ... ... ... 429

Butte, Montana, U.S.A., comparative prices of supplies at, and at Johannesburg .. ... 247

Cajlifobnia, comparative cost of living for miners, mine officiab, and engineers, in and on the Rand, 420

California, discovery of gold in ... ... ... ... ... ... ... 251

California, white labour in, and on Rand ... ... ... ... 24S

California, working conditions in... ... ... ... ... ... 249

Calif omian and Rand gold mines, comparative working costs of ... ... 242

INDEX.

693

PlOI.
... ••• £xO

222

251

441

50, 143, 224, 255, 370, 453

353

• .. vOx
... ... ^oU

... ... /Sao

381

117

... Sl£0

... dtbV

... ... tfiwl

• •< &£u
36, 57, 08, 316, 335

57, 123, 321, 331, 432

322

Calif omian gold minee, working costs of

Calif omian products, relative value of . . .

Calif omian goldfields, comparative population of, and of Rand

Cancellation of first dynamite concession and Nobel

Cancellation of dynamite monopoly ...

Canteens, reef

Canteens, reef and gold thefts

Canteens, undesirability of, on mining areas

v/ape Doys ..> ... ... ... ,., ,,,

Cape Colony, price of No. 1 dynamite in

Cape Government and native labour

Cape Railways, cost of transport of goods per ton per mile on

Cape Railways, dispute between the Orange Free State Railways and

Cape Railways, income of ...

Cape Railways, possible increase of rates against

Cape Railways, profits of ...

Cape Railways, profits of, for 1896

Cape Railways, excessive profits of

Cape Railways, position of

Cape Railways, forced to keep up rates by Netherlands Railway ...

Cape Railways, Alleged raising of rates against ...

Cape Railways* rates — aee Rates ...

Cape Railways, transit dues on

Cape Railways, proposals of (at Pretoria Railway Conference)

Cape Railways, returns of the three for 1896 on an estimated reduction of rates of 10 per cent,
for passenger and 20 per cent, for gxxls traffic

Cape Railways, net cost of a ton of goods per mile on ...

Capital of Netherlands Railway

Capital of New Heriot

Capital expenditure of Crown Reef

Capital, increased, of New Heriot

Capital of Crown Deep ... ... ....

Capital of crushing mines of the Bamato group

Capital of Ferreira ... '

Capital of Greldenhuis Deep

Capital of Glen Deep

Capital of gold companies in the Transvaal ...

Capital issued of twenty Rand companies, table showing interest percentages on

Capital of South African Explosives Company

Capital of seven non-crushing mines of Baruato Group

Capital, reasons for inflow of, into the Witwatersrand ...

Capital of Robinson G.M. Co.

Capital of Klerksdorp mining companies

Capitalisation, comparison (of 105 companies) Septmber, 1895 — May, 1897

Capitalisation of City and Suburban Company

Capitalisation of Henry Nourse

Capitalisation, per claim of Langlaagte Royal, Balmoral and New Primrose ...

Capitalisation of mines

Capitalists, confidence of, shaken : reason for this

Capitalists, support of European

325
338

185, 187, 188

313

204

207

204

.. 75, 78

6.71

72,208

126, 195

122

381,390

75,78

.. 10.>

6,202

373

124, 125

206

205

22,71

.. 127

694 INDEX.

Pa0B

Capitals, deep-level ... ... ... ... ... ... .. ... 146

Capitals of gold companies, amortisation of ... ... ... ... ... 128

Capitals, nominal ... ... ... ... ... ... ... ... S4

Capitals of companies, depreciation of since 1895 ... ... ... ... ... 126

Carbon, analysis of cost of importation of ... ... ... ... ... ... 100

Carbon, cost of ten tons of, at home price and when delivered in Johannesburg with charges... 97

Carbon, comparison of home cost of ten tons of, and railway rates on the same consignment ... 101

Cartridges, manufacture of by South African Explosives Company ... ... 897

Cartridges, dynamite, cost of manufacture of ... ... ... ... 407

Catlin, Mr., evidence of ... ... ... ... ... ... .. 91

Catlin shaft, bonus system and the ... ... ... ... ... ... ^S3

Catlin shaft, sinking of ... ... ... .. ... ... ... 91

Cement ... ... ... ... ... ... ... 68, 284

Cement Factory ... ... ... ... ... ... ... €9,284

Cement, Duty on ... ... ... ... ... ... ... ...69,284,457

Cement, imported prices of ... ... ... ... ... ... ... 69

Cement, increase of railway rate on ... ... ... ... ... 123,331,432

Cement, railway rate ... ... ... ... ... ... 67

Cement, European and Tansvaal prices for ... ... ... ... ... 284

Chamber o^ Commerce, Johannesburg ... ... ... ... ... ... 289

Chamber of Commerce, Johannesburg, questions of, to Mr. Mlddelberg ... ... 434, 438

Chamber of Commerce, Johannesburg, and railway expropriation ... ... ... ... 438

Chamber of Mines, Witwatersrand, complaints of, as to Pass Law ... ... 109

Chamber of Mines, Witwatersrand, railway report of ... ... ... ... ... 68

Chamber of Mines, Witwatersrand, petition of, and of Association of Mines, and of Association of

Mine Managers regarding Pass I^w ... ... ... ... ... ... 258

Chamber of Mines, Witwatersrand, willing to co-operate with Government to prevent bogus flotations 73

Chamber of Mines, W^itwatersrand, alleged proposed contract for dynamite at 90b. per case between

Nobel's and the ... ... ... ... ... ... ... 60

Chamber of Mines, Witwatersrand, gold returns of companies ... ... ... ... 119

Chamber of Mines, Klerksdorp, statement of ... ... ... ... ... 373

Chamber of Commerce, Klerksdorp, statement of ... ... ... ... ... 373

Charge Office, Special, required for carrying out Pass Law ...

Charges, railway — see Rates.

Charges, further objectionable, by Netherlands Railway

Charges on coal before delivery ...

Charitable purposes, subscriptions of Companies to

Charlestown line, opening of

Chlorination plant (of Robinson G.M. Co.)

City and Suburban Company, capitalisation of

City and Suburban Company, equipment of

City and Suburban Company, cyanide works of ... ... ... ... ... 206

City and Suburban Company, analysis of working costs of ... ... ... 199

City and Suburban Company, profits of ... ... ... ... ... ... 206

City and Suburban Company, receipts of ... ... ... ... ... 206

City and Suburban Company, reduced working costs of ... ... ... 207

City and Suburban Company, number of claims of ... ... ... 206

City and Suburban Company, increased extraction of ... ... ... ... ... 207

City and Suburban Company, illicit sale of liquor at ... .. ... .. 49

City and Suburban Company, gold thefts, alleged collusion of police in ... ... ... ^

295

55
52
143
323
203
206
206

INDEX. 695

PlOI.

daim, mining ooet of title to, in United States ... ... .. •• ••• ^^

Claim, distinction of digger's and proepector's ... ... •.• •• •• ^^

Claim licences, Wolhuter ... ... ... ... ... ••• ^^

Claim licences, mining ... ... ... ... ... ••• 241,281

Claim licences, mining, in S. America ... ... ... ... ••• ••• ^^

Claims of New Heriot ... ... ... ... ... ... ••• ••• ^^

Claims, number of, of Geldenhuis Deep ... ... ... ... ••• ^^

Claims, number of , of Henry Nourse ... ... ... ... ••• ••• ^^

Claims, number of City and Suburban ... ... ... ... .•• ••• ^^

Classification of Mines ... ... ... ... .•• ••• ••• ^

Classification of goods wrong ... ... ... ... ••• ••• ^

Climate of Rand ... ... ... ... ... ... ... 418

Climate of Rand and of American Gold Fields, comparison of ... ... ••• ^^^

Closer union between Government, Legislature, and inhabitants of Rand required ... 268, 279

Closing down mines, dangers of ... ... ... ... ••• 301

Closing down of North Randfontein Mine ... ... ... ••• ••• 304

Coal ... ... ... ... ... ... ... 4, 44, 52, 84

Coal, average distance transported ... ... ... ... ... ••• ^^

Coal, delivered at mines, average monthly value of ... ... ••• ^^

Coal, carried for departmental purposes in Orange Free State and Cape Colony, railway rates on 64

Coal charges, loss of Netherlands Railway Company only temporary, by reduction of ... 62

Coal returns, February ... ... ... ... ... ... ••• 314

Coal returns, March ... ... ... ... ... ... ... 314

Coal charges on, before delivery ... ... ... ... ... ... 52

Coal charges, share of Netherlands Railway in .. ... ... ... .•• ^

Coal returns, April ... ... ... ... ... ... ... •. 316

Coal, basis of compilation of railway rates on ... ... ... ... .•• 313

Coal, more facilities required for delivery of... ... ... ... .• ••. ^2

Coal, off-loading of, in bulk... ... ... ... ... ... ... 338

Coal, consumption of, by mines ... ... ... ... ... ... .•• 148

Coal, cost of, on Crown Reef in 1892 and in 1897... ... ... • • 1^

Coal, cost of, on Henry Nourse in 1892 and in 1897 ... ... ... ... ... 135

Coal, average rate per ton of, on Netherlands Railway ... ... ... 317

Coal, differential railway rates on ... ... ... ... .. •.• 121

Coal transport, distance of ... ... ... ... ... ... ••. 317

Coal, economy resulting from reduction of railway rates on, to IJd. per ton per mile ... ... 155

Coal expenses, Ferreira and Worcester ... ... ... ... ... 256

Coal, the transport of ... ... ... ' ... ... ... ... ... 144

Coal, delivery prices of, per ton, possible and actual ... ... ... ... 62

Coal, possible total saving to the mining industry by reduction of expenses regarding ... ... 166

Coal, percentage of profits per ton of, on Netherlands Railway ... ... ... 317

Coal, quality of ... ... ... ... ... ... ... •. 364

Coal, railway rates on, 20, 26, 27, 39 52, 64, 87, 121, 148, 164, 165, 221, 264, 283, 312, 313, 314, 315,

817, 318, 323, 329, 336, 364, 465

Coal, railway rates on, in Germany ... ... ... ... ... ... 329

Coal, railway rates on, reduction of, in 1896 ... ... ... ... ... 323

Coal, railway rates on, in America and on Rand ... ... ... ... ... 148

Coal railway rates on American railways ... ... ... ... ... 148

<Coal, railway rate on, from Springs to Geldenhuis Deep and Jumpers Deep ... ... 165

Coal, standard railway rate for, in Eastern States of United States of America ... ... 166

696 ii^DEX.

Pa«b.

Coal, railway rate on, from Springs to Krugersdorp ... ... ... 318

Coal, saving on, percentage of working costs by reduction in price of ... ... .•• 52

Coal, price of , at Barberton .. . ... ... ... ... 868

Coal, price of, at pit's mouth ... ... ... ... ... ... 52.148,155

Coal traffic and the proposed Elandsfontein Roodepoort line... ... ... 145

Coal traffic, estimated, of Netherlands Railway ... ... ... ... .-. 817

Coal traffic, profits, (Netherlands Railway) on ... ... ... ... ... 325

Coal, traffic of in bags. . . ... ... ... ... ... 317,337

Coal, tonnage transported, table of ... ... ... ... ... ... 314

Coal transport, charges on, of Netherlands Railway, per ton per mile to Geldenhuis Deep, comparison

of, and English railway coal freight ... ... ... ... ... 54

Coal, transport of, and rate for, on American railways in 1892 ... ... ... 154

Coal, transported by rail, average consumption of, by mines ... ... . ... 155

Coal, reduction of railway rates on ... ... ... 27, 121, 148, 264, 317, 387

Coal rate, Netherlands Railway ... ... ... ... ... ... 26,283

Coal rate. Orange Free State Railway ... ... ... ... ... ... 283

Coal rate. Natal Railway ... ... ... ... ... ... ... 283

Coal, railway rates for, on English railways ... ... ... ... ... 812

Coal, value of reductions on, and on dynamite in percentages to certain paying and non-paying

X^A4*1%?0 ••• •«• •«• ••• ••• ••• ••• ••• %MA

Coal, reduced freights on, on foreign railways ... ... ... ... ... 20

Coal Trust, dividends of the ... ... ... ... .. ... 19

Colonial railways ... ... ... ... ... ... ... ... 68

Colonial transit dues ... ... ... ... ... ... ... 68

Commerce and agriculture ... ... ... ... ... ... ... 285-

Commerce and agriculture and the mining industry ... ... ... 286

Commerce, Transvaal and the Netherlands Railway ... ... ... ... ... 330

Commerce, representation of ... ... ... ... ... ... 25

Commerce, Johannesburg Chamber of — «ee Chamber.

Commission of Enquiry into the liquor question, history of ... ... ... ... 349

Commission of Enquiry into the liquor question, appointment of ... ... ... 349

Commission of Enquiry into the liquor question, proposals for regulating native liquor trade made

WW ••• ••• ••• ••• ••• ••• ••• ••• VVl^

Industrial, of Enquiry ... ... ... ... ... ... 263

Industrial, of Inquiry, letter of the, to the State President and Executive Council ... 445

Industrial, of Inquiry, appointment of ... ... ... ... 1

Industrial, of Inquiry, approved in Europe ... ... ... ... 9

Industrial, of Inquiry, members of ... ... ... ... ... 1

Industrial, of Inquiry, objects of ... ... ... ... ... 2

Industrial, of Inquiry, mode of procedure of ... ... ... ... 13

Industrial, of Inquiry, beneficial effect of ... ... ... ... 235

Industrial, of Inquiry, report of ... ... ... ... 443,444,445

Industrial, of Inquiry, replies of Mr. Phillip to ... ... 397

Industrial, of Inquiry, effect of action of in Europe ... ... ... 275

Industrial, of Inquiry, intends well towards mining industry ... ... ... 251

Industrial, of Inquiry, visit of, to the Dynamite Factory ... ... ... 412, 452

Volksraad, on dynamite ... ... ... ... ... 50, 381

Volksraad, on dynamite, report of ... ... ... ... 50, 384, 451

English Royal, on liquor laws ... ... ... ... ... ... 3®

Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission
Commission

INDEX. 697

Paoi.

Companies (gold) in the Transvaal, number and capital of ... ... ... ... 195

Companies (gold), market value of ... ... ... ... ••• IW

Companies (gold), Chamber of Mines gold returns of ... ... ... ... ... 119

Companies (gold), percentages of 53 on total amount of gold produced ... ... ... 119

Companies (gold), dividends of ... ... ... ... ... ... ... 119

Companies (gold), average of total dividends on 51 producing ... ... ... 119

Companies (gold), analysis of operations of 29 principal, as shown by their last published reports

190, 19o, 197

Companies (gold), capitalisation of ... ... ... ... ... 124,125,126

Companies (gold), bogus ... ... ... ... ... ... 17

Companies (gold), statement showing losses of, on unrecovered premiums paid for native labour 118

Companies (gold), table of returns of 74, concerning administration of Liquor Law ... 114, 115

Companies (gold), amortisation of capitals of ... ... ... ... 129

Companies (gold), comparison of, and railway companies ... ... ... ... 27

Companies (gold), losses of 16, in premiums for native labour... ... ... ... 110

Companies (gold) working in 1896 and now ... ... ... ... ... ... 195

Companies (gold), working conditions of some ... ... ... -. 126

Companies (gold), statistics of European labour of 53 ... ... ... ... 119

Companies (gold), profits of 30 of the 53 producing ... ... ... ... 119,122

Companies (gold), statistics of expenditure of ... ... ... ... ... 130

Companies (gold), increase and fall of market values of, since 1895 ... ... ... 130

Companies (gold), return showing desertion of natives from 33 ... ... ... Ill

Comjmnies, 20 Rand (gold), table of, showing amount of dividends for 1896, together with interest

[)ercentage on issued capital and interest percentage on market value, May 1st, 1897 ... 122

Companies, railway and mining, distinction between ... ... ... ... 11

Companies, subscriptions of, to charitable purposes ... ... ... ... ... 143

Companies, 22 Rand (gold), average working costs of ... ... ... ... 245

Companies, Klerksdorp mining, number, capital, and actual condition of ... ... ... 373

Competition, advantages of, in trade ... ... ... ... ... ... 21

Competition, trade combination of merchants and ... ... ... ... 443

Competition in gold mining... ... ... ... ... ... ... 28,429

Compound system ... ... ... ... ... ... ... ...25,46

Compound managers and the liquor question ... ... ... ... ... 350

Compound managers, permits of, to purchase liquor ... ... ... ... 356

Compound management ... ... ... ... ... ... ... 43

Ck>m8tock Mines, Nevada, wages in the ... ... ... ... ... ... 157

Concession, brick-making ... ... ... ... ... 284, 289, 457

Concession, dynamite ... ... ... ... ... ... ... 50, 265, 389

Concession, dynamite, abolition of ... ... ... ... ... 370

Concession, dynamite, Nobel's and the present ... ... ... ... 439

Concession, dynamite, Nobel's and the second ... ... ... ... 441

Concession, dynamite, cancellation of the first ... ... ... ... 441

Concession of Netherlands Railway, duration of ... ... ... ... ... 337

Concession of Netherlands Railway to collect Customs, history of ... ... ... ... 325

Concession, iron ... ... ... ... ... ... ... ... 86

Concessions ... ... ... ... ... ... 73,220,239,372,430,447

Concessions, evils of ... ... ... ... ••• ... ... 220

Concessions, dynamite and railway, Covemmeut required to cancel ... ... ... 224

Concessions, liquor, by mining companies ... ... ... ... ... 350

Concessions, the two dynamite and the Convention ... ... ... ... ... 441

698

INDEX.

Concessions, dynamite ... ... ... ... ... ... ... 21

Construction, costs of mines of Witwatersrand Qoldfields, and excess cost through high railway

JTw VwO •■• ••• ••» ••• ••• Aa* *•• ••• ••• X vO

Construction of mines, not including pajnnent for claims, total cost of ... ... ... 149

Construction expenses, percentages of (deep levels) ... ... ... ... 149,146

Construction of United States railways ... ... ... ... ... 239

Construction, railway, comparative costs of ... ... ... ... ... ... 222

Contract, alleged proposed, between Chamber of Mines and Nobel's for dynamite at 90b. per case ... 50
Contract, dynamite, failure of concessionaires to carry out .. ... ... ... 51

Contract, dynamite, Nobel's and Mr. Lippert's first ... ... ... ... ... 439

Contract, dynamite, right of Government to cancel ... .. ... ... 51

Contract, Geldenhuis Estate and Cowie ... ... ... ... ... ... 355

Contract, the Lingham ... ... ... ... ... ... 290,325,341

Contract work ... ... ... ... ... 40, 119, 183, 250, 251,, 259, 307

Contract work, white wages in 1890 and in 1897 for ... ... ... ... 259

Contract workmen, cost of gelatine to ... ... ... ... 300,303

Contract workmen, cost of fuse to ... ... ... ... ... ... 300

Contract system, the, for native labour ... ... ... ... ... ... 231

Contract, Mr. Davies' ... ... ... ... ... ... ... 341

Convention, the (London), and the two dynamite concessions ... ... ... ... 441

Co-operative action of South African railways desirable ... ... ... ... 325

Co-operation of mining leaders ... ... ... ... ... 39

Cost — «ee cUso Price.

Cost of imported dynamite — aet Price.

Cost of native labour supply ... 14, 23, 96, 110, 117, 129, 228, 239, 250, 261

Cost of transport of native labour ... ... 14, 23, 96, 110, 117, 129, 228, 239.

Cost, prime, comparison of, and of railway rates on heavy g^oods ...

Cost of labour, percentage of, on ordinary working costs

Cost of labour in 1895 ...

Cost of explosives, comparative, at Barberton and on the Rand

Cost of erecting dynamite factory

Cost of materials for dynamite

Cost of importing materials for dynamite in bulk ... ... ... 51

Cost, comparative, of imported finished and half -finished dynamite

Cost, hypothetical comparative, of three deep level shafts of the Simmer and Jack East on time
wage and bonus systems respectively

Cost of sinking of Simmer and Jack East shafts

Cost of coal on Henry Nourse in 1892 and in 1897

Cost of gelatine on Henry Nourse in 1892 and in 1897 ...

Cost of dynamite in 1892 and of gelatine in 1897 on the Crown Reef

Cost of coal on the Oown Reef in 1892 and in 1897

Cost of native labour, reduction of

Cost of explosives

Cost of expropriation of railway ... ... ... 186

Cost of fuel at Langlaagte Royal Mine

Cost of dynamite («ee a/«o Price of )

Cost of explosives, average percentage of, on working costfi

Cost of deep levels

375, 448, 455

... 283

. 35,41,218

... 218

369

381,392

392

401, 407, 453

405

424

... 425

135

... 135

140

... 140

. 14,22,255

78,451

190, 336, 337

11, 180, 266

51,452

Cost of native labour ...

Cost of mine equipment

Cost of food to miners in England...

25, 31, 38, 217, 290, 365

... ^^y ^*

... 172

INDEX. 699

Paoi.
Cost of mealies ... ... ... ... ... ... ... ... 83

Cost of transport of natives to East Rand Proprietary Mines daring 1896, and to March, 1897 96

Cost of rails at English cost price and when delivered in Johannesburg ... ... ... 97, 100

Cost of 10 tons of carbon at home price and when delivered in Johannesburg ... ... 97, 100

Cost of transport of mealies from Durban to New Comet Company ... ... ... 98

Cost of transport of coal, possible total reduction in ... ... ... ... 148

Cost of equipment and development, estimated, on deep level mines of 100 and 200 stamps respectively 148
Cost of dynamite in America... ... ».. ... ... ... ... 46

Cost of white labour, reduction of {see also Wages and Reduction of White Wages) ... ... 85

Cost importing of machinery, plant, etc., for the Rand Mines, Limited, via East London, details of 89
Cost importing of timber for the Rand Mines, Limited, via Delagoa Bay, details of ... ... 89

Cost of native food ... ... ... ... ... ... ... 78

Cost, comparative, of hand and machine drills ... ... ... ... ... 78

Cost of expropriation of railway ... ... ... ... ... 186,190,336,337

Cost of expropriation of railway in 1895 ... ... ... ... ... ... 68

Cost of off-loading coal at Jumpers Deep .. ... ... ... ... 155

Cost, relative, of machinery, f.ab. in England, on the Continent, or in America, and on Witwaters-

rand mines ... ... ... ... ... ... ... 158

Cost, estimated total, of equipment and development of Witwatersrand goldfields... ... 149, 158

Cost of dynamite, how reduction of, would lessen working costs of mines — see reduction of prioe of

dynamite.

Cost of dynamite, increase of ... ... ... ... ... ... 76

Cost of rapid shaft-sinking ... ... ... ... ... ... ... 93

Cost of bagging ... ... ... ... ... ... ... 155

Cost of development of a deep level mine ... ... ... ... 157

Cost of labour — Me a/«o Labour ... .. ... ... ... ... 217

Cost of dynamite, reduction of — «ee o/ao Dynamite ... ... ... ... 255,256

Cost of dynamite reduced — see Reduction of price of dynamite.

Cost, comparative, of dynamite manufactured in the Transvaal, and imported ... 277, 406, 408

Cost of transport of goods per ton per mile on Cape railways ... ... ... 325

Cost of gelatine at Klerksdorp ... ... ... ... ... ... ... 373

Cost, home, of ten tons of carbon and railway rates on the same consignment, comparison of... 101

Cost of labour, percentage of, on working costs— «e« Costs, working.

Cost, prime, and railway rates on a consignment of furniture .. ... ... 56

Cost, prime, of machinery delivered on board ship and when erected on mines here, comparison of 149

Cost of equipment of railways in the United States ... ... ... 283

Cost of labour, percentage of its total costs in English machinery manufactories ... ... 149

Cost of labour, percentage of its total costs on the Jumpers Deep Mine ... ... 1 49

Cost of equipment of the Geldenhuis Deep ... ... ... ... ... ... 208

Cost of total stores per ton milled at Alaska Treadwell Gold Mining Company ... ... 211

Cost of total stores per ton milled at the Crown Reef Gold Mining Company. . . ... ..211

Cost of gelatine ... ... ... ••. «•• ••• ...263,305,866,372,411

Cost of local manufacture of d3mamite ... ... ... ... 406, 407, 410, 411

Cost, actual, of transport per ton per mile on American railways, 1887-1890 ... ... 154

Cost, actual, of machinery shipments to Johannesburg. . . ... ... ... ... 1 56

Cost of title to mining claim in United States ... ... ... * ... ... 241

Cost of blasting gelatine at the Ferreira Mine ... ... ... 255, 256, 262

Cost of gelatine to contract workmen ... ... ... ... ... ... 300,303

Cost of ftise to contract workmen ... ... ... ... ... 900

700 INDEX.

Ck>8t, net, of a ton of goods per mile on the Cape Railways ... ... ... 313

Cost of dynamite monopoly to Rand mines group in 1896 ... ... ... ... 62

Cost of living ... ... ... ... ... ... ... 131,430

Cost of living, average of, for white married miner ... ... ... ... 47

Cost of living, monthly, of miner's family on the Rand... ... ... ... ... 174

Cost of living, weekly, to a miner's family in England, estimate of ... ... ... 173

Cost of living for a draughtsman in the United States and at Johannesburg ... ... ... 150

Cost of living on the Rand and in England ... ... ... ... ...47,149,175

Cost of living, comparative, of miners in America and on Rand ... ... ... 151, 251, 419

Cost of living, reduction of ... ... ... ... ... ... 141,144,371,447

Cost of living, causes of excessive ... ... ... ... ... 142

'Cost of living, possible reduction of working costs through reduction of ... ... 422

Cost of living of white miners on Rand ... ... ... ... ... ... 249

Cost of living of white miners reducible by Government action ... .. ... 259,302

Cost of living, comparative, in Scotland and on Rand ... ... ... ... ... 306

Cost of living, comparative, for miners, mine officials, and engineers on the Rand and in California 420
Cost of living on Rand, percentages of excess of, over cost of living in American mining campe and

\^X I/IVS ••• ••• ■•• ••• •• •• ••• «•■ ••• ^Kiw Jl

Cost of living, comparative, greater, of higher than lower paid employees ... ... 421

Cost of living, comparative, higher, of married than unmarried miners ... ... ... 421

Cost of living, comparative, at Johannesburg, Erith, England, and Scranton, N. America ... 158

' Cost of living an index to wages .. ... ... ... ... ... ... 420

Cost of living at Barberton ... ... ... ... ... ... ... 365

\yOl9uo OX {5l/l#rwO ••• •»• ••• «•• ••• ••• ••• ••* Ov

Costs, comparative, of different mines — see Costs, working. Comparative, etc.

Costs, sundry, of the Henry Nourse Gold Mining Company ... ... ... 135

Costs, milling, of some mines of the United States ... ... ... ... 2)3

Costs, average, milling in United States ... ... ... ... ... 213

Costs, milling, on Rand ... ... ... ... ... ... 216

Costs, development, on Rand ... ... ... ... ... ... 217

Costs of labour at Barberton, percentage of, to total working costs ... ... 366

Costs of labour, percentage of on working costs ... ... ... ... ... 35,41,218

Costs, comparative of railway construction ... ... ... ... ... ... 222

Costs, tabular, of imported mining material from San Francisco ... ... ... 246

Costs, sundry of Crown Reef Gold Mining Company ... ... ... ... ... 140

Costs of development of seven non -crushing mines of Bamato group ... ... ... 78

Costs of development of crushing mines of Barnato group ... ... ... ... 78

Costs, cyaniding ... ... ... ... .. ... ... 77,80,217

Costs of New Primrose Mine administration, reduction of ... ... ... ... 76

Costs in labour and stores (New Primrose Mine) 1890-1803, reduction of ... ... 76

Costs in labour and stores (New Primrose Mine) 1893-1896, reduction of ... ... ... 76

Costs free on board and Netherlands Railway charges on a consignment of timber... ... 56

Costs, development and construction of Jumpers ]>eep ; percentages of, from its commencement to

olst JJecemDer, loVo ... ... ... ... ... ••• ... 157

Costs, construction of mines of Witwatersrand goldfields and excess (construction) cost through

high railway rates ... ... ... ... ... ... 158

Costs, prime, comparison of, and railway charges on Australian goods ... ... ... 55

Costs, comparative, of New Primrose for 1890, 1893 and 1896^«ee Costs, working of New Primrose, etc

Costs, reduction of, desired from Government ... ... ... ... ... 77

Costs, analysis of, of air compressor originally bought in England when delivered in Johannesburg

INDEX. 701

Paob.

Costs, Henry Nourse Gold Mining Company, from Ist January, 1890, to Slst December, 1896 —
9ee Costs working, of Henry Nourse, etc

Costs of bagging and off-loading ... ... ... ... 148

Costs, construction, percentages of (deep levels) ^ ... ... ... 149,156

Costs, dynamite ... ... ... ... ... ... ... 38, 220

Costs of living — see Cost of living

Costs of mines, percentages of — see Costs, working

Costs, initial, of New Heriot — see Costs, working, initial, &o.

Costs, mining — see Costs, working.

Costs, working ... ... ... ... ... ... 4, 41, 45, 47, 60, 415, 446

Costs, working, reduction of, of Ferreira Company since 1892.

Costs, working, average of mines on Rand .. ... ... ... ... 80, 422

Costs, working, percenti^ of, to revenue of Netherlands Railway for 1894 and 1895 ... 324

Costs, working, Netherlands Railway reduction of ... ... ... ... ... 337

Costs, working, railway methods of calculating ... ... ... 313

Costs, working, total at Barberton, percentage of costs of labour to ... ... ... 366

Costs, working, of Buffelsdoorn Estate and Gold Mining Company, March and April, 1897, inclusive

of mine redemption and Johannesburg office charges ... . ... ... 380

Costs, working, March and April, 1897 of Eastleigh Mines, Limited ... .., ... 379

Costs, working, comparative, of different mines ... ... ... ... ... 80

Costs, working, and the State revenue... ... ... ... ... ... 415

Costs, working, comparative, of Witwatersrand mines and of quartz lodes of American fields ... 41

Costs, working, beneficial results of reduction of 6s. per ton on ... ... ... 123, 132

Costs, working, reduction of 6s. per ton on, will restore confidence ... ... 44

Costs, working, relative advantages of the reduction of, to the rich and poor mines ... ... 147

Costs, working, results of reduction of, by Government ... ... ,^ ... 179

Costs, working. Government aid required to reduce ... ... ... 141, 180, 209, 223

Costs, working, reduction ef 32, 51, 52, 58, 77, 83, 85, 123, 132, 141, 144, 145, 147, 179, 180, 209, 223,

260, 262, 267, 270, 271, 424
Costs, working, future reduction of ... ... ... ... ... ... 223

Costs, working, extent of reduction of, dependent on Government action regarding Netherlands

iVI»A J WW ■* Jf ••• ••• ••• ••• •■• ••• ••• »•■ OO

Costs, working, reduction of, possible, both without and with Government aid ... ... 77

Costs, working, saving in, by bonus system ... ... ... ... ... ... 424

Costs, working, reduction of, required to bring majority of mines into work at a profit ... 132

Costs, working, amount and percentages of, of the Henry Nourse Gold Mining Company for 1896 13o

Costs, working, amount and percentages of, of the Bonanza Gold Mining Company from September

to December, 1896 ... ... ... ... ... ... ... 136

Costs, working, amount and percentages of, of the New Modderfontein Gold Mining Company from

1st May, 1896, to 31st March, 1897 ... ... ... ... ... 137

Costs, working, amount and percentages of, of the Treasury Gold Mines for the year ending 81st

ixlarcn, loui ... ... ... ... ... ... ... ... 138

Costs, working, amount and percentages of, of the Wolhuter Gold Mines for 1896... ... 139

Costs, working, amount and percentages of, of the Crown Reef Gold Mining Company for 1896 ... 140

Costs, working, average percentage of cost of explosives on ... ... ... 51, 452

Costs, working, probable saving in, by reduction in price of coal ... ... ... ... 52

Costs, working, annual saving possible on ... ... ... ... ... 141

Costs, working, of Henry Nourse ... ... ... ... .. 134,206

Costs, working, of Crown Reef ... ... ... ... ... ... 208

Costs, working, of Dead wood Terra Gold Mining Company ... ... ... ... 212

Costs, working, of Mount Morgan Mine ... ... ... ... ... 213

Co8t8, working, of MyeoTB Company ... ... -. -. .-■ -- SIS

Costs, working, of El Calloo Mine ••■ ... .-• -■ — -■• 813

Costs, working, of Califomian gold mines ... ... ... ■.■ -■- 213, 842

Costa, working, reduced, of City and Suburban Componjr ... ... ... ... 207

Costs, working, comparative, of Alaska Treadwell and Crown Reef Gold Mining Companies ... 212

Costs, working, relative, of United SUtea and Venezuela goldflelds ... ... 218

Costa, working, comijnrative of Californiftn and Rand gold mines ... ... 242

Costs, working, o( Tanmruck Mine, U.S.A ... ... ... -- 2«, 248, 249

Coata, working, average, of 22 Rand companies ■■- ■■■ ■-■ ■■■ -■• 248

Cuata, working, comparative, of outcrop und deep level mines, Michigan, U.S.A — ... 249

Costa, working, reductions in, made liy mining industry ... ... -. 77, 280, 270

Costa, working, of Fi:rreira Company, reductions of, since 1892 ... ... ... 280

Costs, working, Ss. i>er toil reduction in, required , ... ... ... ...26*, 269. 271, 272

CoBtH, working, co-operation of mining industry neceesary in reducing.. ... ... 32, 297

Coets, working, of Netherlands Railway ... --- --■ ■■. .-■ 314

Costs, working, of Netherlands Railway for 1886... ... ... ... ■-. 319

Costs, working, percentage of railway rates on ... ... --. ■■- 85, 42, 58, 60

Costs, workinR, of Qeldonhuis Deep ... ... ... -■ ■■. -.■ 87

Costs, working, of New Comet and Angelo ... ... ... ... ... ... 101

Costs, working, percentage of, to be possibly saved by rodacing cost of eipleeivee ... 51

CoatA, working, percentage of white and Dative w^ea on nine shafts on ... ... ... OS

Costs! working, of New Primrose Mum ... ... ... .- -. 75,80,83

Costs, working, of Meyer ami Cliarlton for 1896 ... ... ... - 186,102

Costs, working, of Princess Gold Mining Company ... ... ... ... 188, lOS

Costs, working, of Crown Reef, Henry Nouree, City and Suhurban, Robinson, Now Heriot, and

Oeldenhuis Deep, analysis of ... ... --■ ... ... IW

Costs, working, [lercentuge of, of the whole Band from tJie St«le Mining Engineer's retort ... 300

Costs, working, of Robinson fJold Mining Company - ... ... 199, 202, 203

Costs, working, of Alaska Tr«i<l«-ell Gold MiuingCompany... ... ... ... 810

Costa, working, dividends und reduction o( ... ... .■- — ... 14*

Costs, working, percentage of luliour coats On ... ... — ... ..- 38, 41, 218

Coats, working, oomporntive of Atlantic AUooez and Oeceola oatcrop and Tamarack deep-lere) mines 245

Costs, working, percentjigo of white w^fes on ... ... ... ... ... 60

Costs, working, means of reducing ... ... -. ... ... ... 179

Costs, working. pernenUge of ... ... ... .•■ - 7, 87. 39. 41. 47, 60

Coats, working, reduction of on Rand possible ... ... ... ... 83, 416

Coatx, working, Ijinglaagte Royul -. .- ■■■ ■■■ ■■■ ■-- ' 76

Costs, working, initUl, of the New Heriot ... -. ... ... ... 304

Costa, working, of Sierra Butter Mino, U.S.A. -.• ... ... ... ... 247

Coats, working, of Plumas Eurelui Mine, U.S.A. ... ... ... --. ... 247

Coats, working, ot Zeile Mine, U S.A. ... ■•■ — -■ ■■■ ■■■ 247

Costs, working, of Plymouth Conaolidated Mino, U.S.A. ... ... ... ... 911

Cosu! working, of Atlantic Mine. U.3.A. ... ... .- ... ... 248,249

Coats, working, comjiarative, of cuttTop and deep-Ievel mines ... ... ... 258

Coats, working, possible induction of, through reductions of cost of living ... ... 42)

Costs, working, comparative, of different mines... ... ... .. ,. 80

"Cowie," contract, the -■• ■•■ ■- — ■■■ -■■ — •>•

Crown Deep, capital ot ... ■■■ ■■ ■■■ ■■■ ■.- 72

Crown Reef, analysis of working coeta of ... ... ... ... ... ... IM

7oa

Grown Reef , dividends of ...

Grown Reef, equipment of

Grown Reef, history of ...

Grown Reef , capital expenditure ol

Grown. Reef, capital of

Grown Reef , revenue and expenditure of

Grown Reef, reserve ore of ... ... ... ...

Grown Reef , increased extraction of

Grown Reef , yield of ... ..« ...

Grown Reef, working costs of

Grown Reef, cost of total stores per ton milled atu..

Grown Reef, comparative table of prices for stores at, and at the Alaska Treadwell G. M. Co.

Grown Reef, comparative working costs of, and of Alaska Treadwell G. M. Co.

Grown Reef, sorting on ...

Grown Reef G. M. Co., sundry costs of...

Grown Reef, cost of coal on, in 1892 and in 1897

Grown Reef, cost of dynamite in 1892 and of gelatine in 1897

Grown Reef, amount and percentages of working costs of, for 1896

Grown Reef, white and native wages on, in 1892 and in 1897

Crown Reef, average developing wage per shift of white miner

46^

207

20T

iS'

207
207

2oa
2oa

20&
211
211
212^
140,15a
140

.. 14a
14a

.. 14a

Grown Reef, table of wages on, and on Jumpers Deep, and in Montana, Nevada and British
v^oiuiu Dia ... ... .... ... ... •«. ...

Customs abatements necessary

Customs, collection of, at Komati Poort

Customs, English, liquor duties of, for 1895 ...

Customs, revenue of Netherlands Railway from collection of

Customs, history of concession of Netherlands Railway to collect ...

Customs dues

Cyanide patent

Cyanide plant, expense of ...

Cyanide, price of

Cyanide works of City and Suburban ... ... ... ...«

Cyanide treatment of Robinson G. M. Co. ...

Cyanide treatment
Cyaniding, costs.of

157
... 268.

324
... 352^

324
... 32&

26a
... oir

149
... 143

206^
... 203.

203
77, 80, 217

Dalrtmplk, Mr. William, evidence of...

**Davie8," privilege, the

Deadwood Terra Gold Mining Company, wages at the

Deadwood Terra Gold Mining Company, working costs of

Deadwood Terra Gold Mining Company, yield of ..

De Beers, price of dynamite at ...

Debenture issue of Gtoldenhuis Deep ...

Debentures, Netherlands Railway state guarantee of ...

j^eep Aeveis ... ... ... •••

Deep levels, economy of

Deep levels, dryness in first row of

Deep levels, dryness in second row of ... • •

Deep levels, Ferreira, Worcester- and Wemraer ' ...

. 21,

95.
325,341

2ia

... TSljb

212-

382,388,395^

208

... 319

17, 262^

4ie

... 416

704 INBEX.

Deep levels of 2,000 or 3,000 feet ... ... ... ... ... ... ... 2fl2

Deep levels, cost of ... ... ... ... ... ... ... 17

Deep levels, cost of development of ... ... ... ... ... ... 157

Deep levels, development of... ... ... ... ... ... ... 244

Deep levels, depths and distances from outcrop of ... ... ... ... ... 244

Deep levels, economy of rapid shaft sinking in ... ... .. ... ... 425

Deep levels, percentages of construction costs of ... ... ... ... 149, 156

Deep levels, value of ... ... ... ... ... ... ... 279

Deep levels, table of distribution of labour at the different ... ... ... ... 171

Deep levels, comparative working costs of outcrop mines and of ... ... ... 252

Deep levels, capitals of ... ... ... ... ... .. ... 146

Deep levels, comparative working of, and coetB of outcrop mines, Michigan, U.S.A. ... 249

Delagoa Bay, rate from, to Klerksdorp ... ... ... ... ... ... 374

Delagoa Bay route ... ... ... ... ... ... ... 16

Delagoa Bay route, comparative railway mileage rates on rough and third-class goods on, and on

the Cape and Natal routes ... ... ... ... ... ... S75

Delagoa Bay route, drawbacks to, for imported goods ... ... ... ... ... 97

Delagoa Bay line, opening of

Delagoa Bay line, rates of

Delagoa Bay, railM'ay rates from, to Johannesburg ... ... ... ... 97

Delagoa Bay, refusal of trucks at... ... ... ... ... ... ... 340

Delivery charges on the Netherlonds Railway ... ... ... ... ... g7^ 341

Delivery of coal, more facilities required for... ... ... ... ... ... 5s

Delivery prices of coal per ton, possible and actual ... ... ... ... 52

Delivery of live stock on Netherlands Railway, delay in ... ... ... ... 341

Delivery of goods on the Netherlands Railway ... ... ... ... ... 341,456

Demurrage charges on the Netherlands Railway ... ... ... ... ... 340

Denny, Mr. G. A., evidence of ... ... ... ... .. ... 359

Departmental committees ... ... ... ... ... ... ... igg

Depreciation of capitals of companies since 1895 ... ... ... ... ... 126

Depression, comparison of, in 1890 and in 1897 ... ... ... ... ... 209

Depression, the present ... . ... ... ... ... ... .., 141^ 445

Depression, probable effect of ... ... ... ... ... ... 12,430

Depression, reasons for ... ... ... ... ... 2, 105, 270, 275, 415, 430

Depression, the present, remedies for .. ... ... ... ... ^.. 195

Deserters, means for identification of ... ... ... ... ... ... 297

Deserters, some, arrested ... ... ... .. .. ... ... 397

••• ..• ... ... ..• ... 297

Deserters, identification of, difficult

Deserters from New Kleinfontein Company from September, 1895, to March, 1896

j^eservion .. ... ... ... ... ... ...

Desertion returns

Desertion of natives from 33 companies, return showing

Desertion, means for preventing

Desertions at the Langlaagte Estate

Desertions, loss of Ferreira Mine through

Desertions, loss of Bantjes Consolidated Mines through

Desertions, loss to Langlaagte Estate Gold Mining Company through ...

Desertions, loss of Treasury Gold Mines through

Desertions, loss of Vogelstruis Coz^solidated Deep through .k.

•..

48,297

297

. Ill

297
110

110
II

INDEX. 705

I -

Paqi.

Desertions, loss of Wolhuter Gold Mines in 1895 and in 1896 through ... ... ... 110

Detective force, special, necessary to bring to justice illicit gold buyers ... .. 115, 457

Detectives, inefficiency of ... ... .. ... ... ... 48

j^e conabors ... ... .•• ..« ... ... ... ... 4X^

Detonators, importation* of ... ... ... ... ... ... ... 399

Detonators, Mr. Lippert's commission on ... ... ... ... ... 399

Detonators, price of ... ... ... ... ... ... ... 397,399,440

Detonators, permits for importation of ... ... ... ... 441

Detonators, Sale of, in Johannesburg ... ... ... ... ... ... 440

Detonators, manufacture of ... ... ... ... ... ... ... 399

Detonators, profits on sale of ... .. ... ... ... ... ... 440

Development costs of crushing mines of Bamato group ... ... ... ... 78

Development costs on Rand... ... ... ... ... ... ... 217

Development, costs of, of seven non-crushing mines of Barnato group ... ... 7g

Development, early, of gold mines ... ... ... ... ... ... 201

Development, estimated cost of, on deep level mines of 100 and 200 stamps respectively ... 148

Development of deep levels ... ... ... ... ... ..." ... 157,244

Development of mines of Bamato group ... ... ... ... ... ... yg

Development of New Heriot ... ... ... ... ... ... 204

Development of the mining industry ... ... ... ... ... ... 72

Development, of non-producing mines, necessity of ... ... ... ... 12I

Development, estimated total cost of, of Witwatersrand goldfields ... 149^ 15g

Diggers' licences ... ... ... ... ... ... ... ... 19, 24, 281

Directors of Geldenhuis Deep, salaries of ... ... ... ... .. ... gg

Directors' salaries ... ... ... ... ... ... ... 300, 448

Discontent of Witwatersrand ... ... ... ... ... ... ... 269

Dividend and non-dividend paying mines ... ... ... ... ... 17

Dividend and non-dividend paying mines, differential railway rates for ... ... ... 3xg

Dividend of South African Explosives Company for 1895 ... .. ... ... 3g2, 390

Dividend estimated of Netherlands Railway on reduction of rates ... ... ... 32g

Dividend, Netherlands Railway, for 1895 ... ... ... ... 33

Dividends of Netherlands Railway for 1896 ... ... ... ... ... ... 327

Dividends, comparative, of mines and Netherlands Railway ... ... .«« .., 20

Dividends, payment of ... ... ... ... ... ... ... 34

Dividends of Coal Trust ... ... ... ... ... ... ... jg

Dividends of Aurora West ... ... ... ... ... ,„ ... jg

Dividends of Rand Gold Mining Companies ... ... ... 119,145 446

Dividends of companies of Bamato group ... ... ... ... ... .,, g2

Dividends and reduction of working costs ... ... ... ... ... ^45

Dividends of Crown Reef ... ... .. ... ... ... ... 45

Dividends, £1 Callao Mine ... ... ... ... ... ... ... 215

Dividends of foreign railwa3*s ... ... ... ... ... ... 20

Dividends of George Gk)ch ... ... ... ... ... ,., ,,^ jg

Dividend of Jumpers .. .. ... ... ... ... 7

Dividends of Meyer and Charlton Mine ... ... ... ... ... ... jg

Dividends of Midas East Estate ... ... ... ... ... ... |g

Dividends of Roodepoort United Main Reef ... ... ... ... ... ... ^9

Dividends of Steyn Estate ... ... ... ... ... ... .., 29

Dividends of American railways in 1892 ... ... ... ... ... ... i^

706 INDEX.

Dividends of Tamarack Mine .. ... ... ... ... ... ... 244

Dividends, amount of, paid by 20 Rcmd companies for 1896, table showing ... ... 122

Dividends, railway ... ... ... ... ... ... ... 6,81$

Dividends, total, average of, of 51 producing- companies ... ... ... ... 119

Dividends, taxation of .. ... ... ... ... ... ... ... 28(y

Dividend of mines in 1896 ... ... ... ... ... ... ... 141, 33S

Draughtsmen, four principal, average monthly wage of, on the Rand and in England ... 149, 157

Draughtsmen, cost of living for, in the United States and at Johannesburg ... IS^

^^aAXX IL/wjrO ••• ••• •• ••• ••• ••• ••• ••• ••• ^H^

Drills, hand and machine, comparative cost of ... ... ... ... ... 78

Drunkenness and crime ... ... ... ... ... ... ... 352

Drunkenness, percentage of, at the New Kleinfontein Company since the increase in licenoes 96

Dryness in deep levels, first row ... ... ... ... ... ... ... 416

Dryness in deep levels, second row ... ... ... ... ... ... 416

Dryness in outcrop mines ... ... ... ... ... ... ... 416

Dryness of mines on Rand ... ... ... ... ... ... ... 416

Dues — see Duties.

Durban, railway rates from, to Johannesburg ... ... ... ... 97

Dutch language, use of, on the Netherlands railway ... ... .. ... 340

Duty, import, on cement ... ... ... ... ... ... 69, 284, 457

Duty, import, on food-stufis... ... ... ... ... ...285,286,289,448,454

Duty, import, on machinery ... ... ... ... ... ... 284,287

Duties, import ... ... ... ... ... ... ... 131,284,293,442

Duties, import, reduction of ... ... ... ... ... ... 278,414,442

Duties, grain and flour ... ... ... ... ... ... 284

Duties, special, on food-stufib ... ... ... ... ... ... ... 292

Duties, transit ... ... ... ... ... ... 57, 68, 102, 123, 130, 325, 459

Dynamite ... ... ... ... ... ... 3,4,5,44,50,96,121,269,276,372

Dynamite accidents ... ... ... ... ... ... ... 362,382

Dynamite in use on Rcmd, composition of ... ... ... ... ... ... 277

Dynamite Concession ... ... ... ... ... ... 21,50,265,389

Dynamite, cost of («€e a/«o Price of) ... ... ... ... ... 11,180,286

Dynamite, former prices of ... ... ... ... ... ... ... 21

Dynamite, permits to import ... ... ... ... ... ... ...21,94

Dynamite, price of at De Beers ... ... ... ... ... 21,382,388,386

Dynamite, profits on ... ... ... ... 24, 36, 143, 384, 385, 410, 441, 451, 462

Dynamite, price (sale) of ... 26, 50, 51, 184, 272, 284, 364, 365, 381, 389, 397, 400, 403, 410, 440, 443, 451

Dynamite, price of, and Nobel's Dynamite Trust ... ... ... ... ... 4Q3

Dynamite costs ... ... ... ... ... ... ... . 38,220

Dynamite, quaUty of ... ... 45, 78, 84, 277, 342, 362, 364, 369, 386, 387, 404

Dynamite monopolists, difficulty of proving specific misdeeds of ... ... ... 60

Dynamite monopolists, right of Government to demand a full account of their businses from .. 60

Dynamite Company, Transvaal, and Mr. Hosken ... ... ... ... ... 439

Dynamite concession, the present, and Nobel ... ... ... ... 439, 441

Dynamite factory, Nobel's Glasgow, and Mr. Hosken ... ... ... ... 43s

Dynamite, Nobel's offer to sell, free in bond at Johannesburg at 40s. a case ... ... 50, 439, 453

Dynamite, free on board at Hamburg, price of, at the commencement of 1897 ... ... 60

Dynamite, charges on, from Hamburg to Johannesburg ... ... ... ... 00

Dynamite, imported (cost), price of ... ... 60, 220, 224, 232, 383, 400, 401, 404, 406, 410, 492

INDEX, 707

I)ynainite, expenditnre of, and excess cost to the East Rand Proprietary and New Kleinfontein

Companies in ... ... ... ... ... ... ... ••• v6

I>ynamite factory in the Transvaal inadvisable ... ... ... ... 143

7, 51, 141, 143, 141, 146, 255
... ... 3oo, 384

... ... .»• ooO

... ... oo7

226, 389, 440
... ... 3ow

389, 452

... ... xUll

I>3mamite, reduction of price of ...

Dynamite, Government, the importer of

Dynamite, Nobel's price in the Transvaal in 1893

I>3mamite factory, articles made at

Dynamite, Cornish prices for

Dynamite materials, imported, preparation of, at the factory

Dynamite ingredients, where found

D3mamite agency, the Government

Dynamite pulp, purchase of ... ... ... ... ... ... ... 391

I>ynamite manufactured per annum, quantity of ... ... ... ... 381, 395, 405

I>ynamite materials, the manufacture of, in the Transvaal ... ... ... ... 395

Dynamite, comparative expense of importing and manufacturing ... ... ... 277, 396, 408

Dsmamite, future im^ ortatioD of, and of raw materials for the same ... ... ... 398

Dynamite manufactured from imported materials, from June, 1894, to October, 1896, quantity of 399

Dynamite, alleged interview with Dr. Leyds in the Paris Temps regarding ... ... ... 50

Dynamite, alleged proposed contract for, between Chamber of Mines and NobePs at 908. per case 50

I>ynamite contract, failure of concessionaires to carry out ... ... ... ... 51

I)ynamite contract, right of Government to cancel ... ... ... ... 51

I>ynamite monopoly, cost of, to Rand Mines Group in 1896 ... ... ... ... 52

Dynamite, total saving in percentage of working costs by reduction in cost of ... ... 52

Dynamite, value in percentages to certain paying and non-paying companies of reduction in .. 52

Dynamite factory, connection of, with Nobel's ... ... ... ... ...59,391,411

Dynamite, European price of ... 59, 65, 284, 383, 387, 388, 389, 393, 398, 400, 403, 409, 412

Dynamite, price of, in foreign countries (not European) ... ... ... ... 381, 388

Dynamite royalties ... ... ... ... ... 66,284,291,390,410,441

Dynamite, imported American, price of ... ... ... ... ... 66

Dynamite " ring " possible ... ... ... ... ... ... ... 66

Dynamite * * ring, ** mining industry could defeat ... ... ... ... ... 66

Dynamite, free trade in ... ... ... ... 67, 121, 225, 226, 285, 443

Dynamite, increase of cost of ... ... ... ... ... ... 76

Dynamite and gelatine, comparison of ... ... ... ... ... ... 82

Dynamite, Nobel's Dynamite Trust and the price of ... ... ... ... 403

Dynamite, prices chargeable for, under the €k>vemment contract ... ... ... 381, 395

Dynamite Commission, Volksraad, report of ... ... ... 50,381,384,451

Dynamite No. 1, price of, in Australia, British India, Cape Colony, Rhodesia, and Natal ... 381

Dynamite, price of, at the £1 Callao and Columbia Mines, South America ... ... 381

Dynamite, American, unsatisfactory experiments in ... ... ... ... 382

Dynamite, price of, in Kimberley ... ... ... ... ... ... 382

Dynamite, price of, in Natal ... ... ... ... ... ... ... 382

I>ynamite materials imported, the quality of ... ... ... ... 404

Dynamite materials, the ''best market "for... ... .. ... ... 405

Dynamite imported, finished and half finished, comparative cost of ... ... ... 405

Pynamite manufactured in the Transvaal, comparative cost of, and of dynamite made of imported

half finished goods ..^ ... ... ... ... ... 406,407,411

I>ynamite factory, estimated profit of ... ... ... .. ... ... 406

I>ynamite, cost of local manufacture ... ... ... ... 406, 407i 410, 411

708 INDEX.

Pau.

]>}mainite, price of in, Bolawayo ... ... ... ... ... ... 411

Dynamite, price of, and the railway rates ... ... ... ... 51, 407, 408, 412, 453

Dynamite factory, visit of the Industrial Commission of Inquiry to ... ... ... 412, 4Jr

Dynamite, profits on imported ... ... ... ... ... 26, 143, 384, 385, 410, 4S2

Dynamite factory could be built by mining industry ... ... ... .. 227

Dynamite factory and the mining industry ... ... ... ... ... ... 399

Dynamite, cost of materials for ... ... ... ... ... ... 392

Dynamite, cost of importing materials for in bulk ... ... ... ... 51, 401, 407, 453

Dynamite, transport charges on, from factory ... ... ... ... ... 403

Djmamite^monopoly, cancellation of — see dynamite concession, cancellation of.

Dynamite, American, composition of ... ... ... ... ... 226, 232, 394

Dynamite, Government control of the manufacture of ... ... ... ... 226,277

Dynamite, former Transvaal price of ... ... ... ... ... ... 389

Dynamite, importation of materials for ... ... ... 227, 287, 383, 384, 389, 396, 401

Dynamite monopoly. State revenue from ... ... ... ... ... ... 287

Dynamite, deaths and losses through ... ... ... ... ... ... 342

Dynamite monopoly and roburite... ... ... ... ... ... ... 345

Dynamite, comparative safety of , and of roburite .. . ... ... ... ... 347

Dynamite, proportionate power of, and of roburite ... ... ... ... 347

Dynamite, price of, at Barberton ... ... ... ... ... 362,363,442

Dynamite, price of and transport charges on, at Klerksdorp ... ... ... 372, 373

Dynamite factory, cost of erecting ... ... ... ... ... ... 381,392

Dynamite, suggested importation of, for Klerksdorp, via Kroonstad ... ... ... 374

Dynamite, Australian price of ... ... ... ... ... ... 372

Dynamite No. 1, NobePs offer to supply No. 1 at 40s. per case to any part of the Transvaal ... 442

Dynamite, No. 1, price of , in England ... ... ... ... ... ... 440

Dynamite trade, the ... ... ... ... ... ... ... ... 440

Dynamite concessions, the two, and the Convention ... ... ... ... 441

Dynamite concession, cancellation of the first, and Nobel ... ... ... 439, 441

Dynamite Company, the French, in Paris for the Transvaal and Nobel ... ... 442

Dynamite manufacture, the by-products of ... ... ... ... ... ... 442

Dynamite fund, subscription of Neumann &; Co. to the ... ... ... ... 131

Dynamite, cost of, in 1892 on Crown Reef ... ... ... ... ... ... 140

Dynamite, consumption of ... ... ... ... ... ... ... 12,66,395

Dynamite, cost of, in America ... ... ... ... ... 46,242,247

Dynamite, reduction of cost of — ttee Reduction of price of,

Dynamite factory ... ... ... ... ... ... 269,412

Dynamite agency charges (Mr. Lippert's) ... ... ... ... 66, 284, 291, 410, 441

Dynamite monopoly .. ... ... ... ... ... ... 61,284,342,345

Dynamite concession, cancellation of .. ... ... ... 50, 143, 224, 242, 255, 370, 45S

Dynamite, comparative price of, in Transvaal, Orange Free State, and at Kimberley ... 373

Dynamite, French, price of, at Kimberley ... ... ... ... ... ... 388

Dynamite, thepurchase of ... ... ... ... 385, 390, 392, 398, 402, 404, 405, 408

Eastleioh mines, working costs of, March and April, 1897 ... ... ... ... 379

East London, railway rates from, to Johannesburg ... ... ... ... 97

East Rand Proprietary Mines, cost of transport of natives to, during 1896 and to March, 1897 ... 96

East Rand Proprietary Mines, expenditure of and excess cost to, in dynamite ... ... 96

East Rand Proprietary Mines, percentage of railway rates on expenditure of ... ... lOi

nmiEX.

709

Paqb.
104
... 104
108
48, 90, 355, 450
... So

East Rand Proprietary Mines, expenditure of
East Band Proprietary Mines, payment of dividends by
Eating booses and the liquor law
Eating bouses, kaffir ...
Economic reform required ...
Economic relief , effect of

Economy, estimated, to Transvaal population on Netherlands Railway rates and through rates for
1896, with an estimated reduction of 10 per cent, on passenger, and 20 per cent, on goods

ra ues . . I •«. ••* ... ... ... ••• «•• joo, xw

Effect, «ee Effects

Elandsfontein, rebates on Johannesburg port (railway) rates... ... ... ... 98

Elandsfontein-Roodepoort line ... ;.. ... ... ... ... 451

El Callao Mine ... ... ... ... ... ... ... 218

El Callao Mine, initial working and yield of ... ... ... ... ... ... 218

El Callao Mine, table of results of operations on ... ... ... ... 214

El Callao Mine, introduction of high grade machinery at ... ... ... ... 215

El Callao Mine, working costs of ... ... ... ... ... 215

El Callao Mine, yield and dividends of ... ... ... ... ... 215

El Callao Mine, ititial success and subsequent failure of ... ... ... ... 215

El Callao Mine, white and black wages at ... ... ... ... ... ... 215

El Callao Mine, reduction of working costs on ... ... ... ... 215

El Callao Mine, negro labour on '... ... ... ... ... ... ... 215

El Callao Mine, price of dynamite at ... ... ... ... ... ... 381

Employers* liability ... ... ... ... .. ... ... 301,448

English benefit societies ... ... .. ... ... ... ... 173

English aid societies .^. ... ... ... ... .. ... ... 175

English railways... ... ... .. ... ... ... ... 191

English railways, profits on ... ... ... ... ... ... 186,191

English railways, rates — ate Rates.

Enquiry (of Industrial Commission) scope of ... ... ... ... ... 1

Equipment, mine, cost of ... ... ... ... ... ... ... 34,54

Equipment of railways, cost of, in the United States ... ... ... ... ... 283

Equipment, estimated total costs of mines of Witwatersrand Gold Fields ... 149, 1^)8

Equipment, cost of, of Gtoldenhuis Deep ... ... ... ... ... ... 208

Equipment, estimated cost of, on deep level mines of 100 and 200 stamps respectively ... 148

Equipment, cost of, of City and Suburban ... ... ... ... ... ... 206

Equipment, cost of, of Crown Reef ... ... .. ... ... ... 207

Equipment, cost of, of Henry Nourse ... ... ... ... ... ... 205

Equipment, cost of, of Langlaagte Royal ... ... ... ... 77

Erith, England, comparative cost of living in, and in Johannesburg, and Scranton, Noi*th America 158

Evidence, Mr. Hay's ... ... ... ... ... ... ... 3

Evidence, Mr. Albu's ... ... ... ... ... ... ... 9, 127

Evidence, Mr. Way's ... .. ... ... ... ... ... 38

Evidence, Mr. S. Jennings' ... ... ... ... ... ... 44

Evidence, Mr. Fitzpatrick's... ... ... ... ... .. ... 47

Evidence, Mr. Hamilton's ... ... ... ... ... ... ... 74

Evidence, Mr. Raleigh's ... ... ... ... ... ... ... 86

Evidence, Mr. Catlin's... ... ... ... ... ... ... ... 91

Evidence, Mr. Dalrymple's ... ... ... ... ... 95

710 IKBBX.

PAcn.

Evidence, Mr. Goldmazin's ... ... ... ... ... ... ••. lOi

Evidence, Mr. Lilbeck's ... ... ... ... ... ... ... 141

Evidence, Mr. Seymour's ... ... ... .. ... ... liS

Evidence, Mr. Barrow's ... ... ... ... ... ... ... 172

Evidence, Mr. Brochon's ... ... ... ... ... ... ... 178

Evidence, Mr. Brakhan's ... ... ... ... ... ... ... 182

Evidence, Mr. H. Jennings' ... ... ... ... ... ... 194, 250

Evidence, Mr. Leggett's ... ... ... ... ... ... ... 240

Evidence, Mr. Johns' ... ... ... ... ... ... ... ... 255

Evidence, Mr. Robinson's ... ... ... ... ... ... ... 263

Evidence, Mr. Pistorius' ... ... ... ... ... ... ... 282

Evidence, Mr. Noble's ... ... ... ... ... ... ... 291

Evidence, Mr. Rood's ... ... ... ... ... ... ... .. 208

Evidence, Mr. Kock's ... ... ... ... ... ... ... 204

Evidence, Mr. Fyffe's ... ... ... ... ... ... ... >.• 200

Evidence, Mr. Middelberg's ... ... ... ... 240, 310, 432, 433

Evidence, Mr. Thomson's .. ... ... ... ... ... ... 342

Evidence, Mr. Foote's ... ... ... ... ... ... ... 348

Evidence, Mr. Brown's ... ... ... ... ... ... ... 302

Evidence, Mr. Shanks' ... ... ... .. ... ... ... 305

Evidence, Mr. Denny's ... ... ... ... ... ... ... 360

Evidence, Mr. Phillip's ... ... ... ... ... ... 881

Evidence, Mr. Hall's .. ... ... ... ... ... ... ... 412

Evidence, Mr. Hosken's ... ... ... ... ... 430

Evidence, recommendation for publication of ... ... ... ... .. 458

Excise duties, English, for 1805 ... ... ... ... ... ... 352

Expenditure of East Rand Proprietary Mines ... ... ... ... ... 104

Expenditure of companies, statistics of ... ... ... ... ... 130

Expenditure of Henry Nourse ... ... ... ... ... ... ... 130

Expenditure, railway ... ... ... ... ... ... ... 147

Expenditure of Crown Reef ... ... .. ... ... ... ... 207

Expenditure, capital of Crown Reef ... ... ... ... ... ... 207

Expenditure of Orange Free State and Transvaal, comparison of ... ... ... 50

Expenditure, monthly, of miner's family on the Rand in groceries ... ... 175

Expenditure, total annual, under Pass Law ... ... ... ... 109

Expenditure, State ... ... ... ... ... ... ... 59, Ul

Exi)enditure, estimated, of pass office through re-organisation ... ... ... ... 295

Expenses — me Cost

Ex]>ense9, working — «ee Costs, working •

Explosives, comparative cost of, at Barberton and on the Rand ... ... ... 369

Explosives, average percentages of cost of, on working costs ... ... ... 51, 452

Explosives, importation of, by the dynamite factory ... ... ... 441

Explosives, free trade in ... ... ... ... ... 343, 373,453

Explosives, cost of ... ... .. ... ... ... ... 78,451

Explosives, safe and dangerous ... ... ... ... ... .. ... 343

Explosives, low jjower ... .. .. ... ... ... .. .143

Explosives, safe, introduction of ... ... ... ... ... ... ... 344

Explosives, nitro-glycerine casualties through ... ... ... ... 344

Explosives, percentage of working costs to be possibly saved by reducing cost of ... ... 51

IKDSX.

711

Explosives, reduction of coet of ... ...

Bxports through Cape Colony and Natal in 1896, value and nature of

Expropriation of railway .. 28, 67, 70, 121, 222, 231, 232, 255

Expropriation of railway, coet of ...

Expropriation of railway, coet of, in 1806

Expropriation of railway, importance of

Expropriation of railway, loan for

Expropriation of railway, notice of

Expropriation of railway, more beneficial than reduction of rates alone...

Expropriation of railway by €k>vernment

Expropriation of railway, the finance of ...

Expropriation of railway, conditions of

Expropriation of railway, the Johannesburg Chamber of Commerce on

Expropriation of railway, efifocts of

Expropriation of railway desirable for general population as well as for mining industry

Factory, dynamite ... ... ... ... ... •

Factory, dynamite, estimated profits of

Factory, dynamite, and the mining industry

Factory, dynamite, articles made at

Factory, cement ...

Factory, dynamite, could be built by mining industry ...

Factory, dynamite, establishment of, in Transvaal, under Government control

Factory, dynamite, preparation of imported dynamite and gelatine materials at

Factory, dynamite, visit of the Industrial Commission of Inquiry to

Factory, dynamite, cost of erecting

Factory, dy namite, future price of the

Factory, dynamite, importation of explosives by the

Factories, 'employment of blacks in

Ferreira Company, reduction of working costs of, since 1892...

Ferreira Company's employees and Liquor Law

Ferreira deep level

Ferreira mine, capitalisation of ...

Ferreira mine coal expenses...

Ferreira mine, cost of blasting gelatine at ...

Ferreira Mine, loss of, through desertions

Ferreira mine, saving through sorting

Ferreira mine, reserve shares of

** Ferreira Raid "

Fine for delay in off-loading at sidings ...

Fines (under Pass Law), failure of actual system of

Fines, increase of, under Pass Law

Fitzpatrick, Mr., evidence of

Fixed property in Johannesburg, taxation on

Flotations ... ...

Flotations, bogus

Paob.

262

431

, 264, 288, 291, 293, 336, 454

...186, 190, 336, 337

... ... £ii»

67, 265, 269, 271, 276

•>3o

... 276. 282

58, 323

181,324

... .. 338

... 49o

..265,272,276,282

. 276

260

. 406

399

387

69,284

. 227

277

389

412, 452

381,392

• • ■ 9 9* 9XJW

441
231
260

... ... iSOo

... oo

... 6, 71
256

255, 256
257

. • • ... Xij\/

... •'4

... ... fv

... oo

... (fv

109

293

5, 34, 35, 37, 127, 130

127, 446

Flotations, bogus. Chamber of Mines willing to co-operate with Government to prevent
Flotations, bogus, law to prevent
Flotations, Mr. Robinson's

271

712 INDEX.

Flour duties ... .. ... ..i ... ... ... ... 284

Flour, railway rates on ... ... ... ... ... ... ... 321

Food, cost of native ... ... ... ... ... ... ... ... 78

Food supply of great towns ... ... ... ... ... ... . 181

Food, cost of, to miners in England ... .. ... ... ... ... 172

Foodstu£&, amount of, imported ... ... ... ... ... ... 286-

Foodstuffs, special duties on ... ... ... ... ... ... 292

Foodstuflfe, import duty on ... ... ... ... ... ... 286, 286, 289. 448, 451

Foodstuffs, railway rates on ... ... ... ... ... ... 31, 33, 437

Foote, Mr. Samuel, evidence of ... ... ... ... ... ... 348

Forced labour in Guatemala ... ... ... ... ... ... ... 371

Forced native labour ... ... ... ... ... ... 8,22,29,371

Free trade and concessions ... ... ... ... ... ... ... 239

Free trade and monopolies ... ... ... ... ... ... ... 143

Free ti-ade in explosives ... ... ... ... ... ... 343,373,453

Free trade in dynamite ... ... ... ... ... 67,121,225,226,285,443

Freight (railway) — see Rates (raflway).

Freights, ocean, on machinery by steamship from New York to South Africa ... ... 152

Freights, ocean, on goods of all four classes by sailing vessels from London, Liverpool, or Glasgow

to East London and Algoa Bay ... ... ... ... ... .>> 152

Freights, ocean, on machinery, cement, and boilers, etc., by sailing vessels from London to East

London and Algoa Bay ... ... ... ... ... ••. ... 152

Freights, sea, on rough goods from Chicago to London ... ... ... 153-

Freights, sea, on rough goods from New York to London ... ... ... ... 153

Freights, sea, on rough goods from New York to San Francisco, ina Galveston ... ... 163

French financiers, views of ... ... ... ... ... .. 178-

^ uci ... ... ... ... ... ... ••• ... ... oA

Fuel, cheapness of , on Rand ... ... ... ... ... ... ... 417

Fuel, comparative expense of, on American mines ... ... ... .. 417

Fuel, Madras railway rates for ... ... ... ... ... ... .- 256

Fuel, cost of, at the Langlaagte Royal Mine ... ... ... .•• ••• 79-

Furniture, prime cost of, and railway rates on a consignment of .. ... ... ... 56

Fuse, cost of, to contract workmen ... ... ... ... ... ... 300-

Fyffe, Mr., evidence of ... ... ... ... ... ... ... 299

Galvanised iron, railway rates on ... ... ... ... ... ... 321

iTeiairine ... ... ... ... ... ... ... •.• ... «kw

Gelatine cost of ... ... ... ... ... ... ...263,305,366,372,411

Gelatine, cost of, on Crown Reef in 1897 ... ... ... ••• ••• ••• 140

Gelatine, cost of, on Henry Nourse in 1892 and in 1897 ... ... ... ••• 135

Gelatine, cost of, to contract workmen ... ... ... ... ... 300,303

Grelatine and roburite ... ... ... ... ... ... ... 348

Gelatine, imported, profits of South African Explosives Company on ... ... 384, 410, 452

Gelatine, quality of ... ... ... ... ... ... ... 369

Gelatine, cost of, at Klerksdorp ... ... . ... ... ... 373

Gelatine, transport charge on, at Klerksdorp ... ... ... ... ... 373

Grelatine materials, preparation at factory of imported ... ... ... ... ... 389

Gelatine, Nobel's price of ... .. ... ... ... ... ... 440

Gelatine, manufacture of, at factory ... ... ... ... ... 387,395,396

INDEX.

718

Gelatine, maximum price for ... ... ... ••• ••• ••• ^^^

Gelatine materials, importation of ... ... ... ••• •• 383,386,389

Gelatine, composition of ... •.. ... ... ... ••• ••• ^®

Gelatine, comparative expense of manufacturing and importing ... ... ••• ••• ^^

Gelatine, comparison of, and djmamite ... ... ... ••• ^

Gelatine, cost of, at Ferreira Mine ... ... ... •-. 256,266

Gelatine cartridges manufactured in Transvaal, or made of imported half finished goods, compare-

tivecostof ... ... ... ... ... .. 405,406

Geldenhuis Deep ... ... ... ... ... ... ••• ^^

Geldenhuis Deep, capital of ... ... ... ... ... .•• 73, 208

Geldenhuis Deep, annual yield of ... ... ... ... ... -•• ^^

Geldenhuis Deep, debenture issue of ... ... ... *•' ••• ^^

Geldenhuis Deep, increased yield of ... ... ... ... ... -•• ^^

Geldenhuis Deep, number of claims of ... ,,. ... ... ••• ••• ^08

Geldenhuis Deep, cost of equipment of ... ... ... ... •.• ^^

Geldenhuis Deep, initial yield of ... ... ... ••• ••• 208

Geldenhuis Deep, actual and average returns per ton of ... ... ... •.• ^^^

Geldenhuis Deep, value of rock of ... ... ... ... ••• •*• ^^^

Geldenhuis Deep, sorting at ... ... ... ... ••. .•• ^^

Geldenhuis Deep working costs .. ... ... ... ..• 87,109

Geldenhuis Deep, salaries of directors and mine officials of ... ... ... ... ^

Geldenhuis Estate, value of rock of ... ... ... ... ••. ••• ^^^

Geldenhuis Estate and "Cowie." contract ... ... ... •. ••• ^^

George Groch location ... ... ... ... ... ... ••. ••• 230

George Gech reserve shares... ... ... ... ... ... ... ^

George Goch, dividends of ... ... ... ... ... .•• 1®

Glen Deep, capital of ... ... ... ... ... ... ••• 72

Geid, discovery of, in California ... ... ... ... ... ... ••• 261

Geid buyers, illicit, special detective force necessary to bring to justice ... ... 116

Geid Law ... ... ... ... ... ... ... ... ... 4, 279

Geid Law, Articles 145 and 146 of ... ... ... ... ... ... H^

Geid mining, competition in ... ... ... ... ... ... 28,429

Geid mining, no monopoly in ... ... ... ... ... ... 28

Geid, percentage of, from Barberton, Klerksdorp, Heidelberg, etc. ... ... ... 196

Geid fields, comparative population of Rand and Californian ... ... ... 261

Geid fields, American, comparison of climate of, with Rand ... ... ... 418

Gold mines — see Mines.

Gold industry — see Mining industry.

Geid companies — see Companies.

Gold fields, relative working costs of United States and Venezuela ... ... 216

Gold, taxation of... ... ... ... .. ... ... 274,280,281

Gold, returns of companies', Chamber of Mines' ... ... ... ... ... 110

Gold thefts ... ... ... ... ... 23, 45, 62, 115, 262, 263, 268, 278, 351, 455

Geid thefts legislation... ... ... ... ... ... ... 116,223

Gold thefts, difficulty of detecting ... ... ... ... ... ... 49

Geid thefts, discouragement of private persons who assist the police in detecting ... ... 49

Gold thefts, prevention of ... ... ... ... ... ... ... 23,115

Gold thefts, remedies for ... ... ... ... ... ... 26, 466

Gold thefts. Local Board with representation of the mining industry advisable for administration of

matters regarding ... ... ... ... ... 49,110,116,184,268,278

714

INDEX.

Gold thefts, co-operation of Government required to prevent
Gold thefts, amount of... ... ... ^^

Gold thefts, City and Suburban, alleged collusion of police ...
Goldmann, Mr. C. S., evidence of
Goods, wrong classification of
Goods, delivery of

Government agents for dynamite

Government agent, the

Government agent, the, and the purchase of dynamite

Government agent, remuneration of

Government, co-operation of, necessary to supply white labour

Government, co-operation of, necessary to supply native labour

Government, co-operation of, necessary to lower white wages
Government the importer of dynamite ...
Government required to cancel railway concession
Government, lack of confidence between, and the mining industry
Government, the, and the South African Explosives Company

Paoi.

222,255

23,49

... 104

341,455

399
... 385,395,398,405,408,409

390

... 407
244

31, 117, 183, 220, 228, 244, 256

220. 366

224

223, 233, 236, 273

400, 402

Government, expropriation of railway possible by...

Government, request to, to reduce railway rate on rough goods across the Vaal River

Government co-operation necessary to remedy the present depression

Government, duty of

Government, duty of, to encourage white labourers

Government, Transvaal, buys its dynamite materials of Nobel

GJovernment, wishes of

Government share in Netherlands Railway

Government, the mining industry and the ...

Gk>vemment control of South African Colonial railways

Government, possible reduction of railway rates by, in conjunction with other South African railways

57, 316

... •»• ... ... ... tK), ^o4, «5flU, 41,U

374

... 106

224

... 233

392

2, 229

. 57,67,319

237, 370, 420

328

Government royalty on dynamite

Grovernment not to blame for maladministration of the Pass Law ...

Grovemment co-operation required to reduce working costs ...

Government has no voice in Netherlands Railway administration ...

Government influence on Transvaal natives

Government, inability of, to retain natives of other countries

Government, co-operation of, required to prevent gold thefts

Government, co-operation of, for supply of native labour from within the Republic required

Government, request to, to exercise right of cancellation of dynamite concession ...

Government administration requires to be reformed

Government control of manufacture of dynamite

Government, advantage of reduction of working costs by

Government, action of, to relieve native labour difficulties ...

Government surveys ...

Government, past remissness of, to assist mining industry ...

Government, relations of uitlanders and the

Government, right of, to cancel dynamite contract

Government has benefited by over-speculation

Government can compel reduction of rates on Netherlands Railway

Government, attitude of ..^

... ... £io

77, 141, 180, 209, 223

... ... S9L

229

222, 255

117,449

50, 51, 224

... 428

226,277

179

363,364

127

... 236

224

./.

IKDEX.

716

Government, right of, to d*™*"^ * ^^^ account of their business from the dynamite and railway

monopolists ... .-• ••• ... ... ... 50

Qovemment, closer onion between, and Legislature and inhabitants of Rand required ... 268, 279

Grade of New Comet and Angelo Mines ... ... ... ... 104

Grade of Anglo-French Farrar Group of Mines ... ... ... ... ... 101

Grahamstown bar, closure of, by the police ... ... ... ... ... 49

Grain duties ... ... ... ... ... ... ... ... 284

Grievances, effects of redress of ... ... ... ... ... ... 18

Grievances, industrial, of mining industry unsatisfied ... ... ... ... ...' 127

Grievances, necessity for redress of ... ... ... ... ... ... 90

Grievances uitlander, radical remedy required for ... ... ... ... ... 237

Grievances on Rand, causes of ... ... ... ... ... ... 420

Groceries, monthly expenses of miner's family on the Rand for ... ... ... ... 175

Ground heat, absence of, in mines on Rand ... ... ... ... ... 417

Guatemala, forced labour in ... ... ... ... ... ... ... 871

Giihr impregnd, composition of ... ... ... ... ... ... 383,886

Gtihr impregn^, imported, profits of South African Explosives Ck)mpany on .. 143, 384, 385, 410, 462

Hau:^ Mr. W. H., evidence of

Hamilton, Mr. Laurie, evidence of

Hay, Mr. James, evidence of

Heat in American mines ... ... ... ... * ...

Heidelberg, percentage of gold from

Henry Nourse, working costs of

Henry Nourse, equipment of

Henry Nourse, capitalisation and history of

Henry Nourse, average extraction of

Henry Nourse, number of claims of

Henry bourse, sorting on

Henry Nourae, cost of coal on, in 1892 and in 1897

Henry Nourse, cost of gelatine on, in 1892 and in 1897 ...
Henry Nourse, expenditure of

Henry Nourse, sundry costs of

Henry Nourse, white and native wages on, in 1892 and in 1897

Henry Nourse, statement of costs of, from 1st January, 1890, to 31st December, 1896 ...

Highland mines and mills, U.S. A., wages at

Homestake mines and mills, wages at

Hosken, Mr. W., evidence of

Hosken, Mr. W., and Nobel's Glasgow dynamite factory

Hosken, Mr. W., and the Transvaal Dynamite Ck)mpany

Hotels, roadside, abolition of

House rent of miners in England

House values and railway rates ...

Hungarian miners' wages ...

Hungarian railway rates

Impokt duty on foodstuffs
Import duty on machinery
Import duty on client

... 412

... «r

417

... 195

135, 199, 206

... 205^

205
... 206

205
... 135

135
... 135

130
... 135

135

... I«f4
213

... 213
430

... 438
439

... «f4il

172
... 131

371
146, 147

285, 286, 280, 448, 451

284, 287

09, 284, 457

716 INDEX.

Paob
Import duties ... ... ... ... ... ... ... 131,284,293,442

Import duties, reduction of ... ... ... ... ... ... 278,414,4^

Import duties on grain and flour ... .. ... ... ... ... 284

Imports, comparison of taxation of, in Central American Republics and in the Tran8>'aal ... 371

Imports, through Cape Colony and Natal, in 1896, value and nature of ... ... ,.. 431

Income tax undesirable in the Transvaal ... ... ... ... ... ... 281

Industrial advantages derived by the Transvaal from the South African Explosives Company 382

Industrial conditions of the mining industry must be altered ... ... ... ... 127

Industrial grievances of the mining industry unsatisfied ... ... ... ... 127

Industrial Commission of Enquiry — «et Commission.

Industries, South African, dependent on mining industry ... ... ... ... 430

Industries, encouragement of .. ... ... ... ... ... 449

Industry, the — «te Mining Industry.

Inefficiency of detectives ... ... ... ... ... ... ... 43

Inefficiency of the He %d of the Pass Law Administeration ... ... ... ... 50

Inefficiency of Pass Law officials ... ... ... ... ... ... 261

Inefficieney of native labour ... ... ... ... ... ... 219

Inefficiency of inferior white labour . ... .. ... ... ... 219

Inspection of consignments (on Netherlands Railway) by consignee before signature of receipt 340

Insurances, miners' ... ... ... ... ... ... 301, 305, 306, 306

Installation (of mines), meaning of ... ... ... ... ... ... 73

Interest percentage on issued capital and market value of twenty Rand gold mining companies,

table showing ... ... ... ... ... ... ... 122

Iron, importation of ... ... ... ... ... ... ... ... 286

Iron ore, Transvaal, working of ... ... ... ... ... ... 286

Iron concession ... ... ... ... ... ... ... ... gQ

Jennings, Mr. Hennen, evidence of ... ... ... ... ... ... 194,250

Jennings, Mr. Sydney, evidence of ... ... ... ... ... ... 44

Johannesburg district, proclamation of ... ... ... ... ... 294

Johannesburg, illicit sale of liquor in ... ... ... ... ... ... 49

Johannesburg, comparative cost of living in, and at Erith, England, and Scranton, North America 158

Johannesburg district, average number of boys registered under Pass Law in ... ... 109

Johannesburg, comparative prices of supplies at Butte, Montana, U.S.A., and at ... ... 247

Johannesburg Mercantile Association — set Mercantile.
Johannesburg Chamber of Commerce — «e« Chamber.

Johannesburg, salaries of mine officials in, and in Australia and in the Western States of the United

suives ••• ».• ••• ... ... ... ... ... 1 qq

Johannesburg, cost of living for a draughtsman in the United States, and at ... ... 150

Johannesburg water supply ... ... ... ... ... ... 430

John's, Mr., Evidence of ... ... .. ... ... ... ... 255

John's, Mr., letter and the granting of licences ... ... ... ... ... 115

Jumpers Mine, illicit sale of liquor at ... ... ... ... ... ... 49

Jumpers Mine dividends ... ... ... ... ... ... ... 7

Jumpers Deep, average developing wage per shift of white miner on ... ... ... 149

Jumpers Deep, percentages of costs of, from its commencement to 31st December, 1896 ... 157

Jumpers Deep, percentage of cost of labour, to total costs on ... ... ... ... 149

Jumpers Deep, statistics of expenses on ... ... ... ... ... 149

Jumpers Deep, table of wages on, and on the Crown Reef, and in Montana, Nevada, and British

Columbia ... ... ... ... ... ... ... ... 157

Jumpers Deep, cost of off-loading at ... ... ... ... ... ... 1^

INDBX. 717

Kaffib miners, condition of...

Kaffir eating-houses ... ... ... ... •.•

Kaffirs, difference between United States negroes and

Kimberley, comparative price of dynamite in Transvaal, Orange Free State, and at

Kimberley, price of dynamite at

Kimberley, price of French dynamite at

Kimberley railway rates

Klerksdorp Chamber of Mines and Klerksdorp Chamber of Commerce, statement of

Klerksdorp roads

Klerksdorp, labour supply at

Klerksdorp district : its burdens

Klerksdorp district, reefs of

Klerksdorp district, working companies in

Klerksdorp district, companies of

Klerksdorp, price of dynamite at

Klerksdorp, cost of gelatine at ...

Klerksdorp prices ... ... ... ... ... ...

Klerksdorp, suggested connection between, and the proposed new line from Kroonstad to the Vaal

XVlVwr^ ••■ 9«« ••• ••• ••• ••• •••

Klerksdorp, railway mileage rate on rough and third class goods to station nearest to ...

Klerksdorp, percentage of gold from ...

Klerksdorp, railway rate from Delagoa Bay to

Klerksdorp, railway rate from Port Elizabeth via Johannesburg to

Klerksdorp, railway rate from Port Elizabeth via Vereeniging to ...

Ellerksdorp memorialists, names of

Ellerksdorp, transport charge on gelatine at

Klerksdorp, transport charge on dynamite, at

Klerksdorp, suggested importation of dynamite via Kroonstad, for...

Knight's Deep, statement of average wages of men working on the shaft of, including the bonus

paid, for twelve months to 31st May, 1897 ... ... ... ... ... 94

Koch, Mr. , evidence of ... ... ... ... ... ... ... 294

Komati Poort, collection of Customs at ... ... ... ... ... ... 324

Krugersdorp district, proclamation of ... ... ... ... ... ... 294

Krugersdorp district, average number of boys registered under the Pass Law in ... ... 109

La Columbia Mine, South America, price of dynamite at ... ... ... ... 381

J^aoou* ... ... ••• ... ... ... ■ ... ... ... 44/

Labour, duty of a republic to provide ... ... ... ... ... ... 233

Labour in 1895 and in 1897 ... ... ••* ••• ..« ... ... 102

Xiabour, cost of, on six mines ... ... ... ... •• ... 217

Labour, cost of, in 1895 ... ... ... ... ... ... ... 218

Labour costs at Barberton, percentage of, to total working costs ... ... ... 366

Labour, native ... ... ... 48, 65, 82, 116, 183, 218, 241, 284, 288, 864, 865, 427, 448

Labour, native, railway rates for transport of ... ... ... ... ... 117

Labour, native, co-operation of Qovemment necessary to encourage ... ... ... 220, 228

Labour, native, co-operation of Government for supply of, from within the Republic required 8, 117, 449

Labour, native, contract system for ... ... ... ... ... ... 231

Labour, native, forced ... ... ... ... ... ... 8, 22, 29, 371

Xabour, native^ possible efficiency of ... ... ... ... ... ... 219

Paob.

• • •

371

48,96,

» 355, 460

• ■ •

230

... 373

• • •

382

... 388

• • •

327,341

... 378

• • •

375

... 372 •

• • •

369

... 370

• • •

370. 373

... 370

• « •

372, 373

... 373

• • •

372

the Vaal

• •

375

... 374

• • •

195

... 374

• • •

374

... 374

• • •

373

... 373

• ••

372, 373

... 374

Labour, native, transport of ... ... ... ... ... 388

labour, native, cost of transport of ... ... 14,23,90, 110, U7, 129, ^S, 239, 87S, MS, 450

labour, native, princiijlo of bonus syatem desirable in ... ... ... ... 427

Labour, native, ;iroiniuin3 paid tor — MS Premiams.

I&bour, native, and the Cape Oovemraent ... .. ... ... ... ... 117

Labour, native, coat of ... ... ... ... ... 20,31,38,217,800,380

Labour, native, inefficiency of ... ... ... ... ... ... ... 219

Labour, native, quality of ... ... ... ... ... ... ... 43

Labour, native, redaction of cost of ... ... ... ... 14, 82, 101, 149, 80S

labour, native, supply of ... ... ... 14,23,43,45,48,60,116,800,418

Labour, native, supply of from East Coast ... ... ... ... ... 117

Labour, native, scarcity of ... ... ... -. ... ... 00

Labour, native, in ISSSand 1897 ... ... ... ■.■ ... •.■ 103

Labour, native, difficulty at Barberton ... ... ... ... ... ... 388

Labour, native, co-operation of Government neceaaaty tosnpply ... ...S, 31, 117. 183, 228, 244, 296'

Labour, native, stiitemeiit riliowing losses of companies on unrecovered premiums paid for ... US

Labour, native, Ios^-'ch ot IQ com]NLm<!3 on premiums paid for ... ... ... ... 110

Labour, native, loss of LanglaAKte Coiujiaiij' on unrecovered premiums paid for ... ... IIS

Labour, native, loss of Boiiunui Compuii.v on unrecoveced premiums paid for ... .. lift

Labour, native, -mlIuo of experienced ... ..■ ... ... ... ... 23B

Labour, Euroiiean, BtJLtistics of, of 03 companies ... ... ... ... 119, 120

Labour, forced, in Guatemala ... ... ... ... ... ... 371

Labour, nt^ro, on El Callao Mine ... - ... ... ... ... SIS

labour, native, cost of supply of ... ... 14,23,96, 110, 117, 12», -2i», 231), ^U, 2iI1, 375, 44S, 40S

Labour, menna of iittracting ... ... ... ... ... ... ... 234

Labour, indigenous native, insufficient to meet demand ... ... ... ... 22S

Labour, percentage of costs of, on working costs ... ... ... ... ... 80, 41

Labour, percentage of coet of, to total costs in Englieh machinery manufactories ... ... 149

Labour, white ... ... -. .- ..- --. .- 332, 447

Labour, white, in California and on Rand ... ... ... ... ... 243

labour, white, co-operation of Qovornment necessary to supply ... ... ... ... 244

Labour, white, reduction of cost of ... ... ... ... ... ... 80

Labour, white, and black, proportion of ... ... ... ... ... ... 218

Labour, white, contract system in ... ... ... ... 40, 183, 250. 251, 209, 307

Labour, white, inefficiency of inferior ... ... ... ... ... 210

Labour, white, reduction of, on mines of the Anglo-French Farrar Group ... ... 101

Labour supply, white ... — -. ... ... ... 40,304

Labour, percentage of cost of, to total costs on the Jumpers Deep Mine ... ... 149

Labour, skilled white, scarcity of ... ... ... ... ... ...^40

Labour-saving iiwichined ... -.- -.- -.. -. 88

Labour supply nt Klerkadorp ... .. ... ... ... ... ... 373

Labour, reduction in costs of (New Primrose Mine), 1800-1893 ... ... ... 76

Labour, reduction in coots of (New Prinufoee Mine), 1893-1896 ... -. .- -.. 76

labour, table of distribution of, at the different deep-level mines ... ... ... 171

Labour problem, the ... — .- .-■ -. -. ... 416, 49

Labourers, white, duty of Govornment to encourage ... ... ... ... 333

Lack of confidence Ijetween Government and mining industry ... ... 223, 233, 830, 873

Landed property, transfer duty on ... ... ... ... ... ... SU

Langlao^^ Block B, effect of Os. pet ton reduction in working cost? ... ... ... 311

INDEX.

719

Langlaagte Estate, effect of 58. per ton redaction in working costs

Langlaagte Estate, desertions at the

Langlaagte Estate, losses to, through desertions ...

Langlaagte Estate, loss of, on unreoovered premiums paid for native labour ...

Langlaag^ Royal, equipment of

Langlaagte Royal, reduction of salaries

Langlaagte Royal, cost of fuel

Langlaagte Royal, capitalisation per claim

Langlaagte Royal working costs

Langlaagte Star Mine ...

Large consignments by railway

Laws, Transvaal, and the mining industry

Laws, administration of, on Rand must be altered ...

Leggett, Mr., evidence of

Legislature, closer union between, and inhabitants of Rand and Gk>vernment required

Leyds, Dr., alleged interview with, in the Paris Temps regarding dynamite

License of Old Park Bar, Jeppestown

Licensed victuallers, sale of liquor to natives by

Licensed houses, number of, on reef

Licensed premises, vested interests of ownets of

Licensed and unlicenced liquor dealers, punishments for

Licenses, liquor

Licenses, liquor, security for obtaining

Licenses, liquor, Johannesburg district

Licenses, liquor, wholesale abolition of disapproved

Licenses, liquor, reduction of

Licenses, wholesale and commercial

Licenses, no miners*, in United States...

Licenses, billiard ... ... ...

Licences, mining claim

Licenses, mining claim, in South Ama4ca ...

Licenses, (diggers') claim and prospecting

Licenses, Idturiing

Licenses, hquor, granting of, and Mr. John's letter

Licenses, liquor, transfer of

Licenses, Wolhuter claim ...

Licensing Board, the ...

Lingham contract, the ... ... ...

Lippert, Mr., shares of, in the South African Explosives Company

Lippert, Mr., first dynamite contract of, and Nobel

Lippert, Mr., commission of, on dynamite ...

Lippert, Mr. , commission of, on detonators

Liquor, illicit sale of ...

Liquor, illicit sale of, at City and Suburban Mine

Liquor, illicit sale of, at New Heriot and Robinson Mines

Liquor, illicit sale of, at New Rietfontein Mine ...

Liquor, illicit sale of, at Jumper's Mine

Liquor, illicit sale of , at Wolhuter Mine

Liquor, illicit sale of, at Worcester Mine

Paob.
271

... jSOo

'268
... 118

... ol

... 273

325

... 128

429

... 240

... 268

356

360

355

361

357

... 8, 18, 280

... ... oOo

351,449

• • • • • • vVw

450
354,450
251
355
241

• • • • • • mntx

... 19,24,281

• • • • • • OukV

115

357,450

241

« • • • • ■ oO&

290, 325, 341

• • • • • • wv

439
66, 284, 291, 410, 441

... 9V<f

48, 280, 289
49

• • • • • • VO

• • . ... 4o

... ... vo

720 INDEX,

Paob.

Liquor, illicit sale of, in Johannesburg ... ... ... ... ... ... 49

Liquor, letter of Mr. de Roos to Commandant van Dam regarding illicit sale of ... ... 48

Liquor concessions by mining companies ... ... ... ... ... ... 350

Liquor permits of compound managers to purchase ... ... ... ... 356

Liquor, forged permits to purchase ... ... ... ... ... ... 356

Liquor Law ... ... ... ... 3, 4, 44, 48, 65, 86, 96, 129, 184, 219, 267, 278, 348, 376

Liquor Law (17 of 1896) and the State revenue ... ... ... ... ... 352

Liquor Law (17 of 1896) Article 3 of ... ... ... ... ... ... 349

Liquor Law (17 of 1896) Articles 5 and 6 of ... ... ... ... ... ... 349

Liquor Law (17 of 1896) effects of Article 3 of ... ... ... ... ... 349

Liquor Law (17 of 1896) Article 17 of ... ... ... ... ... ... 351

Liquor Law (17 of 1896) evil effects of Article 16 of ... ... ... ... 351

Liquor Law, police supervision under, inadequate ... ... ... ... ... 115

Liquor Law good ... ... ... ... ... ... ... 49

Liquor Law, history of the ... ... ... ... ... ... .. 129

Liquor Law, repeal of, inadvisable ... ... ... ... ... ... 360

Liquor and eating-houses ... ... .. ... ... ... ... 103

Liquor Law administration 5, 12, 18, 49, 110, 114, 116, 116, 132, 184, 219, 255, 258, 267, 278, 361, 376, 449

Liquor Law, suggested amendments to ... ... ... ... ... 376

Liquor Law, contravention of, on reef ... ... ... ... ... ... 355

Liquor Law and Ferreira Company's employees ... ... ... ... ... 258

Liquor Law, table of returns of 74 companies concerning the administration of ... 114, 115
Liquor Law, local board representing the mining industry advisable for administration of matters

regarding ... ... ... ... ... ... 49,110,115,116,132,184

Liquor Law, remedy for maladministration of ... ... ... ... ... 278

Liquor Laws, English, Royal Commission on ... ... ... ... ... 35B

Liquor licenses ... ... ... ... ... ... ... 8,18,280

Liquor licenses, wholesale abolition of, disapproved ... ... ... ... ... 450

Liquor licenses, wholesale and commercial ... ... ... ... ... 354,450

Liquor licenses, security for obtaining ... ... ... ... ... ... 358

Liquor licenses, reduction of ... ... ... ... ... 450

Liquor licenses in Johannesburg district ... ... ... ... ... 351, 449

Liquor licenses, transfer of .. ... .. ... ... ... ... 357,450

Liquor question. Commission of Enquiry into ... ... ... ... 349, 362

Liquor question, compound managers and the ... ... ... ... ... 350

Liquor, sale of, to coloured persons ... ... ... ... ... ... 340

Liquor sold to natives, importation of ... ... ... ... ... ... 354

Liquor and mining interests, comparative importance of ... ... ... ... 362

Liquor dealers, licensed and unlicensed, punishments for ... ... ... ... 357

Liquor measures stamped for natives ... ••• ... ... ... 358,359

Liquor sold to natives, quantity, quality, and price of ... ... ... ... 354

Liquor duties for 1896, English ... ... ... ... ... ... 352

Liquor trade, vested interests of ... ... ... ... ... ... 354,300

Liquor trade, contribution of, to State revenue .. ... ... ... ... 359

Liquor trade, the Johannesburg Mercantile Association and the ... ... ... 353,359

Liquor trade, results of freedom of in Holland, Belgium, France, Germany and Italy ... 351

Liquor, sale of, to natives by licensed victuallers ... ... ... .., 300

Liquor, sale of, to natives, and mine officials ... ... ... ... ... 354

INDEX. 721

Paob.

Liquor, total prohibition of sale of, to natives advisable ... ... ... 360

Liquor, sale of, to natives, and mine directorates ... ... ... .•• 356

Liquor traffic, illicit, possibility of abolishing ... ... ... ... 359

Liquor traffic, illicit, extent of ... ... ... ... ... ' ... 359

Liquor traffic and the mining industry... ... ... ... ... ... 348, 352

Liquor traffic, suggestions for better regulation of the ... ... ... ... 353,449

Liquor teaffic, the ... ... ... ... ... ... ... 449

Live stock, delay in transit and delivery of, on Netherlands railway ... ... ... 341

Loan for expropriation of railway ... ... ... ... ... 67,265,269,271,276

Loan for public works ... ... ... ... ... ... ... 274, 280

Local Board, able men required for ... ... .. ... ... ... 50

Local Board, representing the minine interests advisable for administration of Pass and Liquor

Laws and matters regarding g(Md thefts ... ... ... 49, 110, 115, 116, 132, 184, 456

Local self-government ... ... ... .. ... ... ... ... 234

Location, another, recommended ... ... ... ... ... ... 376

Location, Buffelsdoom ... ... ... ... ... ... 230, 376

Locations, George Qoch ... ... ... ... ... ... ... 230

Locations in Venezuela ... ... ... ... ... ... ... 229

Locations, small allotments preferable to ... ... ... ... 2fi9

Locations, native ... ... ... ... ... 23, 43, 46, 184, 229, 230, 376, 429, 449

Loss and damage, delay in deciding claims for, against Netherlands Railway ... ... 339

Loss of goods, liability of Netherlands Railway for ... ... ... ... 339,340

x^Oubenes ... ... ... .. ... ... ...> ... ^cus, 40 /

Ltlbeck, Mr. Martin, evidence of ... ... ... ... ... 141

Machinebt, railway rates on, on Netherlands railway ... ... ... ... 148, 221

Machinery railway rates, American, Cape, Natal, and Orange Free State ... 148, 155, 221

Machinery railway rates, English ... ... ... ... . ... ... 221

Machinery, ocean freights, by steamship from New York to South Africa ... 152

Machinery, cement, boilers, etc., ocean freights, by sailing vessels from London to East London

and Algoa Bay ... ... ... ... ... ... ... 152

Machinery, plant, etc., details of importing cost, via East London, for the Rand Mines, Limited 89

Machinery, high-grade, introduction at El Callao Mine... ... ... ... ... 215

Machinery, nmnufacture of ... ... ... ... ... ... ... 221

Machinery, comparative railway rates for ... ... ... ... 148, 155, 221

Machinery, import duty on ... ... ... ... ... ... ... 284,287

Machinery, comparison of prime cost of, delivered on board ship, and when erected on mines 149, 158

Machinery, transit dues on ... ... ... ... ... ... ... 102

Machinery, purchase of ... ... ... ... ... 16, 41, 102

Machinery, railway rates from Delagoa Bay ... ... ... ... ... 54

Machinery, mine, in 1895 and in 1897 ... ... ... ... ... ... 102

Machinery shipments to Johannesburg— actual cost ... ... ... ... 156

Machinery, American railway rates over various roads ... ... ... ... 154

Machines, labour-saving ... ... ... ... ... ... ... 82

Main Reef mines ... ... ... ... ... ... ... 17

Management of mines ... ... ... ... ... ... ... 73,428

Managers, mine, salaries of ... ... ... ... ... ... ... 41

Market inflation ... ... ... .. ... ... ... ... 182

Market value of companies ... ... ... ... ... ... 130,199

Market value of twenty Rand companies, table showing interest pei'centage on ... ... 122

722 INDEX.

— ■ ■ 1 I ■ !■ ■ 1 . -■ ■

Master and Servants' Act, the ... ... ... ... ... ... ... 448

Material (mining), expected economies in ... ... ... ... 149

Mealies, cost of ... ... ... ... ... ... ... ... 83

Mealies, cost of transport of, from Durban to New Comet Company ... ... ... 98

Mealies, consumption of ... ... ... ... ... ... ... 126

Mercantile Association, Johannesburg ... ... ... ... ... ... 289

Mercantile Association, Johannesburg, and the liquor traffic ... ... ... 353,359

Merchants and the Railway Commissioner ... ... ... ... ... 436,437

Merchants* prices ... ... ... ... ... ... ... ... 146

Merchants' trade profits ... ... ... ... ... ... ... 146,285

Merchants, trade combination of , and competition ... ... ... ... 443

Meyer and Charlton Gold Mining Company, flotation of ... ... ... ... 3^

Meyer and Charlton Grold Mining Company, working costs of, for 1896 ... 186, 192

Meyer and Charlton Gold Mining Company, dividends of ... ... ... ... 19

Michigan mines, comparison of working conditions of, and of Rand Mines ... ... ... 245

Midas East Estate, dividends of ... ... .. ... ... ... 19

Middelberg, Mr., evidence of ... ... ... ... ... 240,310,431,432,433

Middelberg, Mr., questions of Johannesburg Chamber of Commerce to... ... 434, 438

Middelberg, Mr., agreeable to a general reduction of railway rates ... ... ... 335

Milling costs on Rand ... ... ... ... ... ... ... 216

Milling costs of some mines in the United States ... ... ... 213

Milling costs, average, of mines in the United States ... ... ... ... 213

Mills idle (on mines of the Bamato group) ... ... ... ... ... ... 74

Mills, large, comparative cheapness of... ... ... ... ... ... 151

Mine officials, miners, and engineers, comparative cost of living of, in California and on the Rand... 420

Mine engineers, salaries of ... ... ... ... ... ... ... 24,45

Mine officials, salaries of ... ... ... ... 15, 41, 45, 83, 87, 300, 302, 306, 448

Mine officials, salaries of, in Johannesburg, Australia, and the western States of the United

Mine officials and sale of liquor to natives ... ... ... ... ... ... 354

Mine officials' salaries, comparative amounts of, and of white wages ... ... ... 307

Mine equipment, cost of ... ... ... ... ... ... ...34,54

Mine employees, higher and lower grade, comi)arative salaries and wages of, on Rand and in

Western America ... ... .. ... ... ... ... 421

Mine officials, salaries of , of Geldenhuis Deep ... ... ... ... 88

Mine directorates and the sale of liquor to natives ... ... ... 356

Mine managements, close organisation of, necessary ... ... ... ... ... 428

Mine managers, salaries of ... ... ... ... ... ... 41

Miner, white, average daily wage of ... ... ... ... ... 47,174

Miner, white, average number of working hours per day of ... ... ... ... 47

Miner, white, average daily wage of, on developing deep-level mines on Rand ... ... 149

Miner, white, average developing wage per shift of, on Crown Reef and Jumpers Deep mines, and

in Montana, N'evada, and British Columbia ... ... ... ... ... 140

Miner's family, monthly expenses of, for groceries ... ... 175

Miner's family, estimate of weekly cost of living of, in England ... ... ... ... ITS

Miner's family, comparative cost of living of, in England and on the Rand ... ... 47, 175

Miners, cost of living of, in America and on the Rand ... ... ... 151, 177, 249, 419, 420

Miners, single, board of ... ... ... ... ... ... ... 176

Miners, importation of ... ... ... ... ... *.. ... 175

Miners, comfort of, on mines ... ... ... ... ... ... 300

INDEX.

723

Miners, white, value of experienced

Miners, kaffir, conditions of

Miners, competent, scarcity of ... ... ... ... i

Miners qoarters ... ... ...

Miners, dismissal of
Miners, voyage expenses of ...
Miners, married and single
Miners' insurances ...

Miners, unmarried, number of
Miners, wages of — see Wages.

Miners, white, cost of living of, reducible by Government action
Miners, married, quarters of
Miners, married, families of, often in Europe
Miners, married, average cost of Uving for ...
Miners, married, number of, with their families absent
Miners, married, number of, with their families here ...

Miners, married, comparative higher cost of living of, than of unmarried miners ...
Miners, cost of food to, in England
Miners, house rent of , in England
Miners, white, failure of reduction of wages of, in India
Mines, Witwatersrand, comparative working conditions of, and of American mineo in Rocky
Mountains and in Pacific Slope States

Paob.

... 258

• • •

371

... 42, 45

300,

303,448

301,

302, 309

• • •

178

177,232

301. 305,

306,308

... 119

• • •

259,302

176, 365

• • •

119

... 119

• • •

421

... 172

• • •

172

... 259

415

Mines, Association of — see Association.

Mines, closing down ...

Mines, differential taxation of

Mines, heat in American

Mines, medium grade outcrop

Mines, number of, on Witwatersrand

Mines, deep level, of 2,000 or 3,000 feet ....

Mines on Rand, dryness of

Mines on Rand, absence of ground heat in

Mines, classification of

Mines, capitalisation of

Mines, American lode, water in ...

Mines, outcrop and deep level, comparative working costs of

Mines, dividends of

Mines, dividends of in 1896 ...

Mines, flotation of

Mines, control of ... ... ... .,j.

Mines, management of

Mines of Witwatersrand Goldfields, construction costs and railway rates

Mines, non-producing, necessity of development of

Mines, consumption of coal by

Mines, main reef

Mines must all be kept working ... ... ...

Mines, dividend and non-dividend paying, differential railway rates for

Mines, early development of

Mines, dividend and non-dividend paying ...

Mines, American, comparative expense of fuel on...

• • «

22, 301

• • • •

274

• • •

... 417

• •

246

• •

• « •

252

• • •

... 416

• • ■

417

f • t

• ■

22, 71, 126

• • •

... 416

• • •

•

252

...119, 141,

, 145,333

• • •

141,333

5, 34, 35,

37,

127, 130

• • •

446

• • •

« • •

158

• • •

... 121

• • •

148

• « •

• • •

179,266

• • •

... 318

• • •

201

• •'•

• • •

417

724 INDEX.

Mines, Witwatersrand, comparative working coete of, and of quartz lodes of American fields 416

Mines, Sunday work on ... ... ... . ... ... ... ... 306

Mines, comparative timbering in Rand and American ... ... ... ... ... 416

Mines, milling costs of some, in United States ... ... ... ... ... 213

Mines, working costs of ... •• ... ... ... 80,415,422

Mines, working costs of, and the State revenue ... ... ... ... ... 415

Mines, outcrop and deep level, Michigan, U.S. A., comparative working costs of ... ... 249

Mines which could pay dividends under improved conditions ... ... 25

Mines, diflTerent, working conditions of ... ... ... ... ... ... 209

Mines, comparative dividends of , and of Netherlands Railway ... ... ... 20

Mines, gold, comparison of Witwatersrand and other ... ... ... 179,245

Mining costs — see Costs, working.

Mining industry, advantages of rich mines to whole ... ... ... ... ... 10

Mining industry, industrial grievances of, unsatisfied ... ... ... ... 127

Mining industry. Pass Law originated by .. ... ... ... ... 65,106

Mining industry, representation of ... ... ... ... ... ... 25,31,224

Mining industry, all Transvaal industries dependent on ... ... ... ... 288

Mining industry. Industrial Commission of Enquiry intends well towards ... ... 251

Mining industry is financial and industrial mainstay of country ... ... 246,282

Mining industry, past remissness of Government to assist ... ... ... ... 127

Mining industry, burdens on the ... ... ... ... 84,282

Mining industry, commerce dependent on ... ... ... ... 285,286,447

Mining industry, agriculture and the ... ... ... 285, 372, 419, 420, 430, 431

Mining industry dependent on the goodwill of the Government regarding the railway rates of the

neighbouring States ... ... ... ... ... ... ... 57

Mining industry, payments of the ... ... ... ... ... ... 50

Mining industry and the Government ... ... ... 223,233,236,237,273,370,420

Mining industry, possible expansion of, under favourable conditions ... ... ... ^8

Mining industry, liquor traffic and the ... ... ... ... ... ... 352

Mining industry, development of ... ... ... ... ... ... 72,413

Mining industry could defeat a dynamite " ring " ... ... ... ... 66

Mining industry, the dynamite factory and the ... ... ... ... ... 399

Mining industry, necessity of reforms for ... ... ... ... 98,323,373

Mining industry, law and the ... ... ... ... ... 128

Mining industry, the South African Explosives Company and the ... ... ... 393

Mining industry, industrial conditions of, must be altered ... ... .., ... 127

Mining industry, reduction in working costs made by ... ... ... ... 77, 260

Mining industry, duty of ... ... ... ... ... ... ... 2

Mining industry, duty of, towards burgher population... ... ... ... ... 279

Mining industry, duty to reduce working costs ... ••. ... ... ... 267

Mining industry and railway expropriation loan ... ... ... ... ... 276

Mining industry, representation of, at meetings of commissioners of railway systems demanded of

Government ... ... ... ... ... ... ... ... 57

Mining industry, past representations of, against Netherlands railway rates ... ... 322

Mining industry of colony of Victoria ... ... ... ... ... ... 871

Mining industry. South African industries dependent on ... ... ... ... 430

Mining industry, pastoral interests dependent on ... ... .. ... ... 378

Mining industry, liquor trade dependent on ... ... ... ... ... 348

Mining industry to be dealt with as a whole ... ... ... t

INDEX. 725

Paob.

Mining Board recommended ... ... ... ... ... ..• •• ^

Mining claim — see Claim.

Mining disasters, information regarding ... ... ... ... ... 346

Mining and railway companies, distinction between ... ... ... . ■ • • • 1 1

Mining question, complexity of ... ... ... ... ... .• ^^

Mining interests, comparative importance of liquor and ... ... ... ... 362

Modderfontein reserve shares ... ... ... ... 34

Monopolies and free trade ... ... ... ... ... ••• 143

Monopolists, difficulty of proving specific misdeeds of dynamite and railway ... SO
Monopolists, right of €k>vemment to demand a full account of their business from dynamite and

ktkLX^WvLjf ... ... ... ... ••« .•• ... ... vV

Monopoly, Nobel's ... ... ... ... ... 226

Monopoly, dynamite, cost of, to Rand Mines group in 1896 ... ... ..• 52

Monopoly, none in gold mining ... ... ... ... ... ... 28

Monopoly, railway ... ... ... ... ... ... ... ... 282

Monopoly, dynamite ... ... ... ... ... ... 61, 284, 342, 345

Monopoly, dynamite, state revenue from ... ... ... ... ... ... 287

Monopoly, dynamite, cancellation of ... ... ... ... 50, 143, 224, 255, 370, 453

Montana, U.S.A., average developing wage per shift of white miner in ... ... ... 149

Montana, U.S.A., wages in the mines of ... ... ... ... ... 157

Mount Morgan Mine, working costs of ... ... ... ... ... ... 213

Mijnpachts, taxation of ... ... ... ... ... ... ... 24,37,281

Mysore Company, working costs of ... ... ... ... ... ... 213

Natal Railways ... ... ... ... ... ... ... ... 189

Natal Railways, position of ... ... ... ... ... ... 57

Natal Railways, profits of ... ... ... ... ... ... 36, 68, 316, 335

Natal Railways, profits of, for 1896 ... ... ... ... ... 57

Natal Railways, estimated interest of, for 1896, with a 10 per cent, reduction in passenger, and 20

per cent, in goods rates ... ... ... ... ... ... 185,189

Natal Railways, comparative table of railway rates per ton per mile on ... ... ... 311

Natal Railways, coal rate on ... ... ... ... ... ... 283

Natal Railways, interest on, for 1896 ... ... ... ... ... 185,189

Natal line, through railway rates on ... ... ... ... ... ... 310

Natal, price of No. 1 dynamite in ... ... ... ... ... 381,382

Natal route, comparative railway mileage rate on rough and third class goods on, and on the Delagoa

Bay and Cape routes ... ... ... ... ... ... ... 375

Natal, transit dues in ... ... ... ... .. ... ... 130

Natal and Cape Colony forced to keep up railway rates by Netherlands Railway ... ... 57

Nationality of mine boys ... ... ... ... ... ... 29

Native Commissioners ... ... ... ... ... ... ... 117,184

Native Commissioners, remuneration demanded by, for supply of natives 14, 23, Co, 85, 261, 262

Native races, improvement of, possible... ... ... ... ... 230

Natives, control of, on goldfields and throughout the Republic ... ... ... ... 297

Natives, Government influence on Transvaal ... ... ... ... ... 229

Natives, mastership of ... ... ... ... ... ... ... 298

Natives, quality, quantity and price of liquor sold to ... ... ... ... 354

Natives, sale of liquor to, and mine directorates ... ... ... ... ... 356

Natives, sale of liquor to, by licensed victuallers ... ... ... ... ... 360

Natives, sale of liquor to, and mine officials ... ... ... ... ... ... 354

Nfttivu, itamped liquor meunne for ... ... ... --- ■.. -. 358, •■

Natives, total prohibition of B»le of liquor to ... ,. ... ... 351, 860

Natives of other countries, inability of Oovernmeol to raUin (in the TnnavMd) ... SSI

NaUvw. taiatioo of ... ... ... -.. ■.. - 29. 117, 128, 230, 231. WB

NativOB, transport of ... ... ... ... 1*. M, 110, 117, 129. 228. 289. 44S

Negr<M0, United States, and kafBn, difEtrence between ... ... -.. -. 230

Negro labour on El CaUao mine ... ... .-- ... - 216

N^pvin United States, progreBS of ... ... — .■■ -.- ■.. 2S0

Netherlands Railway returnH, 1896-1897 ... - - - »- !«■ '80. «7

Netherlands Railway, regulationa of, us to excesB Roods ... ... ... -- M

Netherlands Railway, Dutch control of works of ... -.■ ..■ -■ W

NetherlandsRailway, refusal of initialled chequMM payment for railage by.. ... .- MO

Netherlands Railway, estimated bonus to personnel of, for 1890 ... ... -.- MO

Netherlands Railway, iiiBpoctioa of consignments by consignee before signature of receipt ... S40

Netherlands Railway, loss of, only temporary through reduction of tates on coal ... ... Bi

Netherlands Railway, share of, in ooal charges ... ... .-- ... — &

Netherlands Railway, shortage of goods on ... ... --- ... --■ .■■ 9*1

Netherlands Railway, delay in transit and delivery of live stock on ... ... — Ml

Netherlands Railway, <x)mparative dividends of, and of tninea ... ... 80

Netherlands Railway, delivery of goods by ... ... ... --. ..,87.341,««

NeUierlands Railway administration ... ... ■■ ... 231, 283, 291, 863, 384, 4M

Netherlands Railway, precentage of working costs to revenue, for 189* and 1895 ... *M

Netherlands Railway, owner'aTisk" ... ... -.■ ■ ■ ■ ^^' *S5, «7

Netherlands Railway a private company ... ... — ■.. ■■■ 28

Netherlands Railway proportion of profile to cajrital ... ... ■. ■■■ *•*

Netherlands Railway and Transvaal commerce and agriculture ... ... -. **•

Netherlands Railway effect o( IC per cent, reduction on passenger and 30 per cent on goods trmlfic

on estimated returns of, for 1896 ... .. - - - IM, IM

Netherlands Railway, difficulty of legal action against ... ... -•. *3e, 437

Netherlands Railway, history of concession of, to collect costoms ... ... -.. S25

Netherlands Railway, surplus o( profit of, available for reduction of railway rates ... ... 3B4

Netherlands Railway working coats, reduction of ... ■■■ ■■■ — *"

Netherlands Railway, reduction of coat of transport of notivee ... — .■■ •. •*

Netherlands Railway, revenue of, from collection of customs ... .. ■■. 8*

Netherlands Railway charges for demarrage .- - — ■■- 3*0,455

Netherlands Railway, Governraanl sharein ... ... -■ ■■■ ■■■ *'

Netherlanda Railway control of South African railway rates ... «. (»■ SI". 326, 328, 333, 3>S

NetherUnds Railway, estimated dividend of, on reduction of rates ... -.- .-. S2>

Netlierlands Railway, estimated coal traffic of ... ... -- ■■■ ■■ "'

Netherlanda Railway, estimated profit on, after expropriation .. ... ... 186, 190

Netherlanda Railway, extent of reduction of (mining) working cosle dependent on Goiemment

Netherlands Railway expropriation — att Expropriation.

Netherlands Railway, dividends o£

Netherlands Railway, dividends of, for 1893 .. ... ■■■ — *•

Netherbnds Railway, dividend of, for 1896 ... ... -■■ -■■ ■ ■ •■ ^

Netherlands Railway a monopoly ... ... ■- ■■■ ■-■ "

Netherlonds Railway, bonus to personnel of ... ... ■■ *"• "*

Netherlands Railway debentures, Stato guarantee of ... ■■■ ■■■ ■■ ^'"

Netherlands Railway, refund ot rail^eon lost goods by ■■■ ■' ■" "

INDEX. 727

Netherlands Railway, authority for regulations of ... ... ... ... 339,436

Netherlands Railway, percentage of profit per ton of coal ... ... ... ... 317

Netherlands Railway, percentage of dividends paid to Gkivernment in 1895 on capital of ... 20

Netherlands Railway, concession, Government required to cancel... ... ... ... 224

Netherlands Railway, duration of concession of ... ... ... ... ... 337

Netherlands Railway, reduction of railway rates prevented by ... ... 57, 123, 321, 331, 432

Netherlands Railway, three courses open to Gk>vernment in dealing with ... ... 58

Netherlands Railway, profits bf ... ... ... 4, 30, 33, 36, 56, 57, 315, 321, 333, 334, 385, 337

Netherlands Railway, receipts for 1896 ... ... ... ... 319

Netherlands Railway, payment for railage in coin on ... ... ... ... 340

Netherlands Railway, experience of employees of ... ... ... ... 341

Netherlands Railway, receipts for consignments on ... ... ... ... ... 340

Netherlands Railway, further objectionable charges by ... ... ... ... 55

Netherlands Railway, capital of ... ... ... ... ... ... ... 20

Netherlands Railway, delay in deciding claims for loss and damage against ... ... 330

Netherlands Railway, increased receipts of ... ... ... ... ... 335

Netherlands Railway, liability of, for loss of goods ... ... ... ... 339,340

Netherlands Railway, has sole right of fixing its rates ..» ... ... ... 321

Netherlands Railway, Government share of profits of ... ... ... ... 57,319

Netherlands Railway, reserve fund of ... ... ... ... ... 70,337

Netherlands Railway, working costs of ... ... ... ... ... 314,319

Netherlands Railway surplus of 1896 ... ... ... ... ... 315,316,327

Netherlands Railway surplus, table of, for 1895 and 1896 ... ... ... ... 315

Netherlands Railway profits, uncertainty of ... ... ... ... 316

Netherlands Railway, estimated coal traffic ... ... ... ... ... 317

Netherlands Railway, revenue per mile ... ... ... ... ... ... 323

Netherlands Railway, agreements of, with other railways ... ... ... ... 328

Netherlands Railway, status of ... ... ... ... ... ... 330,334

Netherlands Railway willing to co-operate to reduce through railway rates from i)ort9 ... 331

Netherlands Railway, use of the Dutch language on the ... .>. ... 340

Netherlands Railway rates — tee Rates.

Netherlands Railway overcharges ... ... ... ... ... 332

Netherlands Railway European employees, wages of ... ... ... ... ... 332

Nevada, average developing wage per shift of white miners ... ... ... 149

Nevada, table of wages in, in Montana, in British Columbia, on the Crown Reef, and on the

Jnmpers Deep ... ... ... ... ... ... ... 157

New Comet Mine, working costs ... ... ... ... ... ... 101

New Comet Mine, grade of ... ... ... ... ... ... ... 104

New Heriot G. M. Ca .., ... ... ... ... ... ... 204

New Heriot G. M. Co., capital and claims ... ... ... ... 204

New Heriot G. M. Co., illicit sale of liquor at ... ... ... ... ... 48

New Heriot G. M. Co., initial yield and costs ... ... ... ... ... 204

New Heriot G. M. Co., analysis of working costs ... ... ... ... 199

New Heriot G. M. Co., development and history ... ... ... ... ... 204

New Heriot G. M. Co., increased capital of ... ... ... ... ... 204

New Kleinfontein, percentage of drunkenness at, since increase of licences ... ... ... 96

New Kleinfontein, deserters from, from September, 1895, to March, 1896 ... ... 96

New Kleinfontein, expenditure of and excess cost to, in dynamite ... ... ... 96

New Modderfontein G. M. Ca, amount and percentages of working costs, from Ist May, 1896,

to 31st March, 1897 ^.. ... ... ••' ••• ••• 137

728 INDEX.

PA0B.

New Primrose Mine, working costs ... ... ... ... ... ... 80,82^

New Primrose Mine, comparative working costs, for 1890, 1893, and 1896 ... ... ... 75

New Primrose Mine, capitalisation per claim ... ... ... ... ... 77

New Primrose Mine, reduction of working costs ... ... ... ...^ ... 8S

Nitro-glycerine, explosives casualities through ... ... ... ... ... 344

Nobel and the present dynamite concession ... ... ... ... ... 43&

Nobel and the second dynamite concession ... ... ... ... ... 441

Nobel, connection of the Transvaal Dynamite Factory with ... ... ... 59,391,411

Nobel, the Transvaal Gk>vernment buys its dynamite materials from ... ... 39^

Nobel, roburite and ... ... ... ... ... ... 346,347

Nobel and Mr. Lippert*s first dynamite contract ... ... ... ... 439

Nobel head office ... ... ... ... ... ... ... ... 408

Nobel and Mr. Phillip ... ... ... ... ... ... ... 387,409

Nobel and the cancellation of the first dynamite concession ... ... ... 441

Nobel and the French dynamite company in Paris for the Transvaal ... ... ... 442

Nobel and the South African Explosives Company ... ... ... ... 391,402

Nobel and the subscribed capital of the South African Explosives Company ... ... 442

Nobel, alleged proposed contract for dynamite at 90s. per case between the Chamber of Mines and 50

Nobel's blasting gelatine, price of ... ... ... ... ... ... 440

Nobel's dynamite, price of, in the Transvaal in 1893 ... ... ... ... 386-

NobePs directorate ... ... ... ... ... ... ... 408, 409*

Nobel's offer to sell dynamite free in bond at Johannesburg at 408. per case ... ... 50, 430, 452

Nobel's offer to supply No. 1 dynamite at 408. per case to any part of the Transvaal ... ... 442

Nobel's monopoly ... ... ... ... ... ... ... 226-

Nobel's Glasgow dynamite factory and Mr. Hosken ... ... ... ... ... 438

Nobel's Dynamite Trust ... ... ... ... ... ... ... 342

Nobel's Dynamite Trust, connection of, with the Transvaal dynamite business ... 59, 391, 411

Nobel's Dynamite Trust and the price of dynamite ... ... ... 403-

Nobel's Dynamite Trust, imported dynamite bought from ... ... ... 885,404

Noble, Mr. A. A., evidence of ... ... ... ... ... ... 291

North Randfontein, closing down of the ... ... ... ... ... ... 304

OFFiciALfi (Pass Law) competent, needed ... ... ... ... ... 277

Off-loading of coal in bulk ... ... ... ... ... ... ... 338

Off-loading, costs of ... ... ... ... ... ... 148-

Off-loading, cost of , at the Jumpers Deep ... ... ... 155-

Off-loading, monthly economy obtainable in, by means of automatic wagons ... ... 156

Old Park Bar, Jeppestown, license of ... ... ... ... ... ... 856>

Orange Free State Railway rates — see Rates.

Orange Free State Railways, dispute between, and the Cape Railways ... ... ... 329-

Orange Free State Railways, interest on, for 1896 ... ... ... ... 185,189

Orange Free State Railways, estimated returns of, for 1897, with an estimated reduction of 10 per

cent, on passenger and 20 per cent, on goods traffic ... ... ... 185, 189

Ores, easy working, on Rand ... ... ... ... ... ... 417

Ores, American comptarative hardness of ... ... ... ... ... 417

Osceola outcrop mine, comparative working costs of, and of Atlantic and Allouez outcrop and

Tamarack deep level mines ... ... ... ... ... ... 24S

Outcrop mines, comparative working costs of, and deep level mines, Michigan, U.S.A. 249

Outcrop mines, comptarative working costs of, and of deep level mines ... ... ... 252

Outcrop mines, dryness in ... ... ... ... ... ... ... 416i

INDEX. 729

Paob.

Output, increased .. ... ... ... ... ... ... 271, 281

Over-capitalisation ... ... ... ... 12, 72, 145, 238, 285, 290, 291, 415, 446

Over-speculation .. ... ... ... ... ... 2, 145, 446

Over-speculation, the Grovernment has benefited by ... ... ... ... 224

Over- valuation of mines in 1895 ... ... ... ... ... ... 102

Overcharges (Netherlands Railway) ... ... ... ... ... ... 932

Overtime ... ... ... ... ... ... ... 308

" Owner's risk " .. ... ... ... ... ... ... 339,435,437

Pass Law ... ... ... ...44,48,61,86,96,184,219,256,277,290,292.294,375,456

Pass Law, article 4 . ... ...^ ... ... ... ... ... 295

Pass Law, article 5 ... ... ... ... ... ... ... 295

Pass Law, article 7 ... ... ... ... ... ... 295

Pass Law, article 13 ... ... ... ... ... ... ... ... 295

Pass Law, article 14 ... ... ... ... ... ... 296

Pass Law, article 16 ... ... ... ... ... ... ... ... 296

Pass Law, article 18 ... ... ... ... ... ... ... 296

Pass Law, article 18a ... ... ... ... ... ... ... ... 296

Pass Law, article 21 ... ... ... ... ... ... 296

Pass Law, article 22 ... ... ,. ... ... ... ... ... 296

Pass Law, article 23 ... ... ... ... ... ... 296

Pass Law, article 27 ... ... ... ... ... ... ... ... 296

Pass Law, article 32 ... ... ... ... ... ... ... 296

Pass Law, article 32a ... ... ... ... ... ... ... 296

Pass Law administration 48, 49, 61, 63, 65, 103, 109, 118, 219, 255, 257, 260, 267, 277, 278, 285, 290, 294, 297

Pass Law, administration of, to be given to superintendent of natives ... ... ... 456

Pass Law, reasons for ... ... ... ... ... ... ... 106

Pass Law, total number of boys registered under ... ... ... ... ... 109

Pass Law, total annual expenditure under ... ... ... ... ... 109

Pass Law, total revenue from passes under ... ... ... ... ... ... 109

Pass Law, complaints against made by Association of Mine Managers ... ... ... 257

Pass Law, balance sheet of estimated revenue under ... ... ... ... 107

Pass Law, increase of fines under ... ... ... ... ... ... 109

Pass Law officials, inefficiency of ... ... ... ... ... ... 261

Pass Law, board to administer ... ... ... ... ... 49, 96, 110, 132, 184

Ptas Law, average number of boys registered under, in the Johannesburg district ... ... 109

Pass Law, average number of boys registered under, in the Boksburg district ... ... 109

Pass Law, average number of boys registered under, in the Krugersdorp district ... ... 109

Pass Law, complaints of Chamber of Mines as to ... ... ... ... 109

Pass Law good ... ... ... ... ... ... 49,110,294

Pass Law, petition of the Chamber of Mines, and the Associations of Mines, and Mine Managers ... 258

Pass Law, a chief administrator of, and identical administration in all districts under, necessary 294, 295

Pass Law administration, inefficiency of the Head of ... ... ... ... ... 50

Pass Law, district administration of ... ... ... ... 261

Pass Law, complexity of ... ... ... ... 49

Pass Law originated by mining industry ... ... 65,106

Pass Law, remedies for administration of ... ... ... ... 25-

Pass Law, special 8ta£f of police required for carrying out ... ... ... ... 294,295

Pftss Law, duties of Chief Administrator of .. ... ... ... ... 294

780 INDEX.

Pass Law, special charge office required for carrying out ... ... ... 205

Pass Law« further complaints of the Association of Mine Managers regarding ... ... 258

Pass Law, a staff of warders required ... ... ... ... ... 294,295

Pass Law, amendments required to ... ... ... ... ...133, 292, 294, 295

Pass office, estimated expenditure of, through reorganisation ... ... ... 107, 295

Pass office, reorganisation of ... ... ... ... ... ... 296

Pass office, estimated revenue of, through reorganisation ... ... ... ... 107,295

Pass fees, application of ... ... ... ... ... ... ... 106

Pass fees. State revenue from ... ... ... ... ... ... 133

Pass districts and officials, suggested ... ... ... ... ... ... 107

Pass Commissioner, special appointment of ... ... ... ... ... 294

Pass Commissioner with criminal jurisdiction necessary ... ... ... ... 295

Passes, number of, issued in Johannesburg from April, 1896, to March, 1897 ... ... 109

Pastoral interests dependent on mining industry ... ... ... ... ... 37 2

Pay — we Wages.

Payment of railage in coin on the Netherlands Railway ... ... ... ... 340

Percentage average of costs of explosives on working costs ... ... ... 51,452

Percentage of railway rates on home cost of rails ... ... ... ... ... 100

Percentage of cost of labour on working costs ... ... ... ... ... 35,41,218

Percentage of cost of labour on total costs in English machinery manufactories ... ... 149

Percentage of cost of labour to total costs on the Jumpers Deep ... ... ... 149

Percentage of dividend on the capital of the Netherlands Railway ... ... 20

Percentage of drunkenness at the New Kleinfontein Company since the increase of licences 96

Percentage of cost of labour at Barberton to total working costs ... ... ... 866

Percentageof gold from Barberton, Heidelberg, Klerksdorp, etc. ... ... ... ... 195

Percentage of railway rates on working costs of mines ... ... ... 35, 42, 58, 60

Percentage of railway rates on expenditure of East Rand Proprietary Mines... ... ... 104

Percentage of charges (railway) on home cost of an air compressor ... ... ... 99

Percentage of working costs, probable saving in, by reduction in the price of coal ... ... 52

Percentage of working costs to be possibly saved in reducing the cost of explosives ... 51

Percentage of working costs to revenue of Netherlands Railway for 1894 and 1895 ... ... 324

Percentage of working costs, total saving in, by the reduction of the price of coal and dynamite 52

Percentage of white and native wages on working costs of nine shafts ... ... ... 92

Percentage interest on issued capital of 20 Rand companies ... ... ... ... 122

Percentage interest on market value of 20 Rand companies ... ... ... 122

Percentage of white wages on working costs ... ... ... ... ... 60

Percentage of profit per ton of coal on Netherlands Railway^.. ... ... ... 317

Percentage of working costs — Me Percentage.

Percentages of working costs ... ... ... ... ... 7,37,39,41,47,60

Percentages of working costs of the Crown Reef G. M. Company for 1896 140
Percentages of working costs of the Bonanza G. M. Company, from September to December, 1896... 136

Percentages of working costs of the Henry Nourse G. M. Company for 1896 ... ... 135

Percentages of working costs of the New Modderfontein G. M. Company, from 1st May, 1896 to 31st

March, 1897 ... ... ... ... ... ... 187

Percentages of working costs of the Wolhuter Gold Mines for 1896 ... ... ... 189

Percentiles of working costs of the Treasury Gold Mines, for the year ending 31st Mareh, 1897 138

Percentages of working costs of the whole Rand, from the State Mining Engineer's report ... 200

Percentages of working costs on deep levels ... ... ... ... ... 140, 156

Percentages of costs of the Jumpers Deep from its commencement to 31st December, 1896 ... 157

INDEX. 731

Paoi.

Percentages of excess of cost of living on the Rand over cost of living in American mining camps

and cities ... ... ... ... * ... •.. ... ... 4^1

Peircentages of 53 companies on the total amount of gold piroduced ... ... 119

Percentages, value of I'eductions on coal and dynamite to certain paying and non-paying mines, in 52

Permits for the importation of detonators ... ... ... ... ... 441

Permits of compound managers to purchase liquor ... ... ... ... 356

Permits to import dynamite ... ... ... ... ... ... ...21,24

Permits, forged, to purchase liquor ... ... ... ... ... ... 356

Phillip, Mr. A., evidence of ... ... ... ... ... ... ... 381

Phillip, Mr. A., and information concerning the importation of dynamite ... ... 407

Phillip, Mr. A., and foreign prices of dynamite ... 383, 387, 388, 380, 393, 398, 400, 402. 409, 410, 412

Phillip, Mr. A., and Nobel ... ... ... ... ... ... 387, 409

Phillip, Mr. A., replies of, to the Industrial Commission ... ... ... ... 397

Phillip, Mr. A., Mr. Albu's interrogation of ... ... ... ... ... 393

Pistorius, Mr. H. F., evidence of ... ... ... ... ... ... 282

Plumas Eureka Mine, U.S.A., working costs of ... ... ... ... 247

Plymouth Consolidated Mine, U.S.A., working costs of ... ... ... ... 247

Police, alleged collusion of, in the City and Suburban gold thefts ... ... ... 49

Police, special staff of, required for carrying out the Pass Law ... ... ... 294, 295

Police supervision under Liquor Law inadequate ... ... ... ... ... 115

Political rights ... ... ... .. ... ... ... ... 234

Political status of uitlanders ... ... ... ... ... ... 235

Politics, social, a problem of : its solution ... ... ... .. ... ... 414

Population, comparative growth of, and of revenue, 1885-1897 ... ... ... 58

Population, comparative, of Rand and Calif omian goldfields ... ... ... ... 251

Population, Transvaal, sparsity of ... .. ... ... ... ... 230

Population, uitlander, incorporation of ... .. ... ... ...237, 246, 250, 429

Population, possible, of the Central Rand ... ... ... ... ... 428

Population, burgher, must be increased ... ... ... ... ... ... 429

Population, burgher, duty of mining industry towards h,.. ... ... 279

Portuguese railways — see Rates.

Powder, manufacture of, by the South African Explosives Company ... ... ... 396

Powder manufacture, and importation of materials for ... ... .. ... 397

Premiums paid for native labour by 34 companies, 1895, 1896, 1896-97 ... ... ... 112

Premiums {Miid for native labour, losses of 16 companies in ... ... ... ... 110

Premiums unrecovered paid for native labour, loss of Bonanza Company on ... ... ... 118

Premiums unrecovered paid for native labour, statement showing losses of companies on ... 118

Premiums unrecovered paid for native labour, loss of Langlaagte Company on ... ... 118

Pretoria railway conference ... ... ... ... ... ... 338

Price — 8ee also Cost.

Price (sale) of dynamite ... 26, 50, 51, 184, 272, 284, 364, 365, 381, 389, 397, 400, 403, 410, 440, 443, 451

Price of dynsunite at Barberton ... ... ... ... 362,363,442

Price of dynamite and transport charge at Klerksdorp ... ... ... 372,373

Price of dynamite in Bulawayo... ... ... ... ... ... ... 411

Price of djrnamite comparative in Transvaal, Orange Free State, and at Kimberley ... ... 373

Price of dynamite and the itdlway rates ... ... ... 51,407,412

Price of dynamite at El Callao and La Columbia Mines, South America ... ... ... 381

Price of dynamite in foreign countries (not European) ... ... ... ... 65,388

Price of dynamite, reduction of ... ... ... ... 7,51, 141, 143, 144, 146^256

732 INDEX.

Paob.
Price of dynamite free on board at Hamburg at the commencement of 1897 ... ... 50

Price of dynamite, European ... ... ^ ... ... 59, 284, 383, 387, 389, 393, 398, 400

Price of dynamite, Australian ... ... ... ... ... .. 372,381

Price of dynamite at de Beers ... ... ... ... ... ...21,382,388,395

Price of dynamite in Natal ... ... ... ... ... ... ... 382

Price of dynamite and NobePs Dynamite Trust ... ... ... ... ... 403

Price of dynamite, former Transvaal ... ... ... ... ... ... 389

Price, cost, of imported dynamite ... 06, 220, 224, 232, 383, 400, 401, 404, 408, 410, 452

Price of No. 1 dynamite in England ... ... ... ... ... ... 440

Price of No. 1 dynamite in Australia, British India, Cape Ck)lony, Rhodesia and Natal... ... 381

Price of imported American dynamite ... ... ... ... ... 66

Price of NobePs dynamite in the Transvaal in 1893 ... ... ... ... ... 386

Price of roburite ... ... ... ... ... ... ... ... 343,347

Price of bricks ... ... ... ... ... ... ... ... 289

Price of liquor sold to natives ... ... ... ... ... 354

Price of NobePs blasting gelatine ... ... ... ... ... ... 440

Price of detonators ... ... ... ... ... ... ... 399,440

Price of cyanide ... ... ... ... ... ... ... ... 143

xmce oi coai ... ... ... ... ... ... ■.. ... o4

Price of coal at the pit's mouth ... ... ... ... ... ... 52,148,155

Price of coal at Barberton ... ... ... ... ... ... ... 363

Price of coal, saving in percentage of working costs by reduction in ... ... ... 52

Price, maximum, of gelatine ... ... ... ... ... 410

Price of an air compressor at English cost price and when delivered in Johannesburg, with extracts

of charges ... ... ... ... ... ... ... ... 97

Prices, foreign, of dynamite and Mr. Phillip ... 383, 387, 388, 389, 393, 398, 400, 402, 409, 410, 412
Prices, Ck)rnish, for dynamite ... ... ... ... ... ... 226,389,440

Prices of imported cement ... ... ... ... ... ... ... 69

Prices, European and Transvaal, for cement... ... ... ... ... ... 284

Prices, comparative, of supplies at Butte, Montana, U.S.A., and at Johannesburg ... 247

Prices, merchants' ... ... ... ... ... ... ... ... 146

Prices, delivery, of coal per ton, possible and actual ... ... ... ... 52

Prices, Klerksdorp ... ... ... ... ... ... ... ... 372

Prices chargeable for dynamite under Government contract ... ... ... ... 381

Prices of manufactured dynamite in Europe and the Transvaal {nee cdno Price of and European

price OI/ ... ... ... .. ... ... ... ... «Ki«f

Prime cost and railway rates on a consignment of furniture ... ... ... ... 56

Prime cost of machinery delivered on board ship and when erected on mines here, comparison of ... 149
Prime cost, comparison of, and of railway rates on heavy goods ... ... ... 283

Prime costs, comparison of, and of railway charges on Australian goods ... ... ... 55

Princess Estate and G. M. Co., working costs of ... ... ... ... 186,193

Privileges for large consignments... ... ... ... ... ... ... 325

Procedure of the Industrial Commission of Enquiry, mode of ... ... ... 13

Proclamation of Johannesburg, Boksburg, and Krugersdorp districts ... ... ... 294

Produce, railway rates for ... ... ... ... ... 222, 291, 335, 374, 420, 455

Products, Calif ornian, relative value of ... ... ... ... ... ... 222

Profit — see Profits.

Profits, Netherlands Railway ... ... ... 4, 30, 33, 36, 56, 57, 316, 333, 334, 335, 337

Profits, Netherlands Railway, Government share in ... ... ... ... 57,319

INDEX.

733

Profits, Netherlands Railway, uncertainty of

Profits, Netherlands Railway, surplus of, available for the reduction of railway

Profits estimated on Netherlands Railway after expropriation

Profits, estimated, of dynamite factory

Profits of South African Explosives Company for 1895 ...

Profits of South African Explosives Company, State's share of

Profits of South African Explosives Company for 1896 ...

Profits of South African Explosives Company on imported dynamite ...

Pk-ofits of South African Explosives Company on imported gelatine

Profits of Atlantic Mine

I\<ofits of City and Suburban Mine

Profits of Robinson G. M. Co. in 1896 ...

F^fits of 30 out of 51 producing companies ...

j^fits of South African railways

Profits of Cape Railways

Profits of Natal and Cape Railways for 1896

Profits of Natal Railways

Profits, railway .. ... ... ..« ...

Profits, railway, excessive contribution of Transvaal trade to

Profits, proportion of, to capital, Netherlands Railway

Profits, total excessive, of railway systems ...

Profits on English railways ...

Profits on dynamite

Profits on the sale of detonators

Profits (Netherlands Railway) on the coal traffic

Profits put back into mines ...

Profits on present price of dynamite

Property, fixed, in Johannesburg, taxation of

Property, landed, transfer duty on

Prospecting licences

Protection Board to prevent gold thefts

Public works

Public works, loan for

...24,36, 143,

Paob.

• •• ... vlO

rates ... 324

186, 191

... . • . 4vu

• • • •) «IU| 4^X9
• . . «XKS| 404

• ■ • • • • ^B^^X

24, 143, 384, 385, 410, 452

384, 410, 452

245

206

202

119. 122

• • • • • ■ %Onr

36, 57, 68, 316. 335

... 36, 68, 316, 335
4, 36, 57, 68, 316, 335, 434

. . a ... V/

... ... vlO

186, 191

384, 385, 410, 441, 451, 452

... ... v4^/

... ... o^o

• • . ... mW

441, 451

... ... «SVd

... ... JSvm

... 19, 24, 251

... ... ^Oo

.•• ... aoX

274, 280

Railroad — we Railway.

Rails, percentage of railway rates on the home cost of ...

Rails, cost of, at English cost price, and when delivered in Johannesburg

Railway charges and taxation the chief grievances of the mining industry ...

Railway monopolists, difficulty of proving specific misdeeds of

Railway monopolists, right of the Government to demand a full account of their business from

Railway carriage in 1895 and in 1897 ...

Railway companies, comparison of, and of gold companies

Railway companies, private...

Railway companies, distinction between, and mining companies ...

Railway expropriation — Me Expropriation.

Railway profits {au also Netherlands Railway profits)

Railway profits, excessive contribution of Transvaal trade to

Railway dividends

Railway dividends for 1895 — see Netherlands Railway, dividends oL

100

97, 100

102
27
20
11

4, 36, 57, 68, 316, 335, 434

... ... Of

••• ... 6, 316

784

INDEX.

Railway monopoly

Railway principles, State, unsuitable for South Africa

Railway situation, the key of the

Railway, first, in the United States

Railway employees, European, wages of — «ee Netherlands Railway, etc.

Railway administration, reforms required in

Railway charges — see Rates, railway.

Railway rates — see Rates, railway.

Railway working costs, methods of calculating

Railway systems, total excessive profits of ...

Railway wagons, special

Railway conference at Maritzburg

Railway conference at Pretoria

Railway competition ...

Railway concession. Government requested to cancel

Railway report of the Chamber of Mines

Railway revenue and expenditure

Railway revenue per mile in Natal, the Cape, India, and the United Kingdom

Railway Commissioner and merchants

Railways, Cape — see Cape.

Railways, Portuguese — see Portuguese.

Railways, American — see American.

Railways, absorption of European money by

Railways, foreign, charges of

Railways, foreign, diNidends of

Railways, foreign , reduced coal rates on

Railways, United States — see American.

Railways, South African — see South African.

Railways, Natal — see Natal.

Railways, English — see English.

Rcdlways, Orange Free State — see Orange Free State.

Railways, Dutch ownership of

Railways, Colonial

Railways, continental ownership of

Raleigh, Mr., eWdence of

Rand, advantageous conditions of

Rand, cheapness of fuel on ...

Rand, comparison of climate on American goldfields, and on the ...

Rand, absence of ground heat in mines on

Rand, easy working ores on

Rand mines, comparative timbering in, and in American mines

Rand, drjrness of mines on

Rand, reduction of working costs on, possible

Rand, possibilities of mining developments on

Rand, comparative cost of explosives at Barberton, and on

Rand, comparative wages and cost of living in Scotland, and on ...

Rand, closer union between inhabitants of, Grovernment and Legislature required...

Rand goldfields, comparative population of, and of Califomian goldfields

Rand mines, comparison of working conditions of, and of Michigan mines

Paob.

• • • . • • XoSS

312
68, 317, 328, 333, 335

251

• • • • • • AO^/

318

325,455

... 321

338

27, 28. 333

224

147
... 324
436,437

50
16
20
20

.. 329

... 329

194, 418

4J7
... 418

417
.. 417

416
... 416

416
... 413

369

306

268,279

... 251

INDEX. 735

Paoi.
Rand, white labour on, and in California ... ... ... ... 24$

Rand, estimated life of ... ... ... ... ,.. ... ... 195

Rand, railway rates on ooal, on ... ... ... ... ... ... I4g

Band gold mining companies, dividends of ... ... ... ... ... ... 145

Rand, sanitary condition of... ... ... ... ... ... ... 41S

Rand, causes of grievances on ... ... ... ... ... ... 420

Rand, comparative cost of living for miners, mine officials and engineers on, and in California 249, 251, 420

Rand, monthly cost of living of miner's family on the ... ... ... ... ... 174

Rand, comparative salaries and wages on, and in Western America of higher and lower grade mine

employees .*• ••• ... ... ... ... ... ... 43SX

Rand, cost of living in England, and on ... ... ... ... ... 47,140

Rand and Calif omian gold mines; comparative working costs of ... ... ... 242

Rand, percentages of excess of cost of living on, over cost of living in American mining camps and

CaUOB ... .*• ... ... ... ... ... ..» 4«X

Rand, average working costs of mines on ... ... ... ... ... 422

Rand, lowness of mine salaries on the... ... ... ... ... ... 157

Kand .Dunes ... ... ... ..* ... ... ... ... SflOo

'< Rand Mines " meeting, speech of chairman at ... ... ... ... 190

Randfontein companies and Pass Law administration ... ... ... ... ... 257

Randfontein mines, redaction of wages on ... ... ... ... ... 275,003

Rate— «ee Rates

Rates, railway ... 6, 10, 10, 35, 36, 54, 57, 09, 86, 97, 148, 155, 184, 221, 240, 256, 285, 363, 374, 454

Rates, NetherUnds Railway 6, 10, 36, 54, 84, 148, 180, 184, 1S5, 186, 221, 241, 256, 264, 283, 285,

320, 326, 332, 333. 336, 340, 342, 363, 366, 374, 454

Rates, railway, redaction of 19, 27, 30, 57, 98, 121, 141, 144, 146, 148, 180, 184, 185, 186, 187, 188,

189, 190, 232, 255, 264, 266, 325, 332, 370, 454

Rates, railway, on heavy goods 11, 54, 56, 87, 99, 100, 101, 123, 153, 154, 311, 312, 321, 332, 374, 375

Rates, railway, on coal 20, 26, 27, 39, 52, 54, 87, 121, 148, 154, 155, 221, 264, 283, 312, 313, 314,

315, 317, 318, 323, 329, 336, 337, 864, 455

Rates, Cape Railways ... 11, 14, 16, 54, 57, 68, 99, 130, 148, 155, 185, 187, 188, 221, 311, 313,

327, 341, 355, 375, 454

Rates, Natal Railways ... 11, 16, 54, 55, 68, 97, 148, 155, 185, 189, 221, 311, 374, 375, 454

Rates, Netherlands Railway, on a consignment of timber and costs f.o.b. of the same ... ... 56

Rates, Netherlands Railway, increase of, on roagh goods ... ... ... ... 123

Rates, Netherlands Railway, Government can compel reduction of ... ... ... 58

Rates, railway, on coal, share of Netherlands Railway in ... ... ... ... 52

Rates, Netherlands Railway, effect of 15 per cent, reduction of, on passenger and 30 per cent, on

goods on estimated returns for 1896 ... ... ... ... ... ... 185

Rates, railway, comparative table of, per ton per mile on Cape Railways, and from the ports to

Johannesburg ... ... ... ... ... ... ... 311

Rates, railway, American, on coal, in 1892 ... ... ... ... ... 154

Rates, railway, through, on Natal line ... ... ... ... ... 310

Rates, railway, through, and local, comparison of ... ... ... ... ... 320

Rates, railway, through, to Rhodesian mines ... ... ... ... ... 312

Rates, railway, through, from ports, reduction of ... ... ... ... ... 331

Rates, through, Netherlands Railway share in ... ... ... ... ... 810,432

Rates, through, share of State in Netherlands Railway share of ... ... ... ... 311

Rates, Cape Railways, apparent willingness of Cape Railways to reduce ... ... 57

Rates, through, shares of different railway administrations in, are independent of amount of 310

Rates, through, and terminal fi*om Vereeniging to Johannesburg, comparison of .. ... 54-

Rates, Cape Railways, comparative table of, per ton per mile on, and from ports to Johannesburg 81L

736 INDEX.

Paob.
Rates, Natal Railways, comparative table of, per ton per mile on, and from porto to Johannesburg 311

Rates, Netherlands Railway, and through for 1896, estimated economy on, to Trausi'aal popu-
lation with an estimated reduction of 10 per cent, on passenger and 20 per cent, on
goods* rates ... ... ... ... ... ... ... 186, 190

Rates, Netherlands Railway, on machinery ... ... ... ... ... 148,221

Rates, Madras Railway, for fuel ... ... ... ... ... ... ... 2'i6

Rates, Netherlands Railway, expropriation of railway more beneficial than mere reduction of 276, 282

Rates, railway. South African, comfjarative table of ... ... ... ... 28^

Rates, railway. South African, Netherlands Railway, control of ... 68, 69, 317, 326, 328, 333, 335

Rates, difiference of, on Delagoa Bay and East London routes ... ... ... 310

Rates, railway, on coal from Springs to Krugersdorp ... ... ... ... 318

Rates, Netherlands Railway has sole right of fixing its... ... ... ... .. 321

Rates, Netherland Railway, on coal, reduction of, in 1896 ... ... ... ^ ... 323

Rates, Netherland's, "fighting " .. ... ... ... ... ... 326,332,833

Rates, railway (Netherland's) conditions for reduction of .. ... ... ... 334, 836

Rates, Orange Free State Railways, on coal ... ... ... ... ... 283

Rates, Orange Free State Railways, with an estimated reduction of 10 per cent, on passenger and

20 per cent, on goods' rates, estimated returns/ of, for 1897 ... ... ... 186, 189

Rates, railway, on coal on American railways ... ..i ... ... ... 148

Rates, railway (Netherlands), increase of , on rough goods ... ... ... ... 123

Rates, railway (Cape) reduction of, between Port Elizabeth and Vereeniging in 1895 ... ... 130

Hates, railway, low, advantageous to railways' ... ... ... ... ... 21

Rates, railway, comparative, on Indian, English, Belgian, Dutch and Grerman lines ... ... 153

Rates, railway, English in 1893 ... ... ... ... ... ... 153

Rates, railway, German per ton per mile in 1868, 1878, 1880, 1882, 1884, 1886, 1888, and 1890 ... 154
Rates, railway, American, on machinery over various roads .. ... ... ... 154

Rates, railway, on goods from Chicago to New York in 1892 ... ... ... ... 154

l^tes, railway, standard for coal in the Eastern States of the United States of America ... 155

Rates, railway (Netherlands), on coal from Springs to the Greldenhuis Deep and the Jumpers' Deep 155
Rates, railway, from Durban, East London, and Delagoa Bay to Johannesburg ... ... 97

Rates, railway, percentage of, on the home cost of a consignment of rails ... ... ... 100

Rates, railway, on ten tons of carbon, comparison of and of the home cost of the same consignment 101
Rates, railway, percentage of, on the expenditure of the East Rand Proprietary Mines ... ... 104

Rates, railway (Netherlands), and the Government ... ... ... ... 142

Rates, railway, reduction of, necessary ... ... ... ... ... 142

Rates, railway (Netherlands), on coal, economy resulting from reduction of, to 1 jd per ton per mile 155
Rates, railway (Netherlands), reduction of, and the State revenue ... 142, 143, 146

Rates, railway (Netherlands), for produce ... ... .. 222, 291, 335, 374, 420, 155

Rates, railway, percentage of, on the working costs of the mines ... ... 35, 42, 58, 60

Rates, railway, in the United States ... ... ... 56, 148, 154, 227, 228, 283

Rates, railway, English, on machinery ... ... ... ... ... 221

Rates, Netherlands Railway, on machinery ... ... ... ... ... 148, 221

Rates, railway, on machinery, in America, the Cape, Natal, and the Orange Free State 148, 155, 221
Rates, railway, from Delagoa Bay on consignment of galvanized iron, sheet lead, and candles ... 54
Rates, Netherlands Railway, no allowance made for large consignments ... ... 55

Rates, railway, American, on timber sets ... ... ... ... ..^ 50

Rates, railway, on a consignment of fomiture, and prime costs of the same ... 56

Rates, railway, United States, lowness of, in new districts ... ... ... ... 228

INDEX. 7JIT'

Paob.
lUtee, railway, control of , Id the United States ... ... ... 927-

Rates, railway, for transport of natives ... ... 14, 117, 228, 375, 4d5

Bates, railway, Hungarian ... ... ... ... ... ... 146, 147

Hates, railway, from the Ports to Johannesburg, Elandsfontein and Boksburg rebates on ... 98

Bates, railway, for coal on Natal Bailways ... ... ... ... 28S

Bates, Netherlands Bailway, reduction of, to follow expropriation ... ... ... 282

Bates, Cape Railways, estimated reduction of, of 30 per cent, for passenger and 20 per cent, for

goods traffic, returns of the three Cape Bailways for 1896 on the same 185, 187, 188

Bates, railway, on coal differential ... ... ... ... ... 121

Bates, Beira Railway ... ... ... ... 817,342

Bates, (Netherlands) railway, differential for divi(iend and non-dividend paying mines ... 318

Bates, (Netherlands) railway, apportionment of surplus following the reduction of ... 318

Bates, (Netherlands) railway, on coal, 20 per cent, reduction of ... ... ... 322

Bates, railway, local ... ... ... ... ... ... 320, 322, 433

Bates, (Netherland) railway, possible increase of, against the Cape Bailways ... ... 322

Bates, (Netherlands) railway, allied raising of, against the Cape Bailways 322

Bates, railway, (Port) Komati, line not to be used to reduce ... ... ... ... 322

Bates, Netherlands Bailway, past represenfotions of the Mining Industry, against ... 322

Bates, railway, history of present ... ... ... .., ... ... 310

Bates, railway, on galvanised iron and flour ... ... ... ... ... 321

Bates, railway, on timber and machinery from Delagoa Bay ... ... ... 54

Bates, (Netherlands) railway, surplus of profit of the Netherlands Bailway, available for the

reduction of ... .. ... ... ... ... ... 324

Bates, railway, from Delagoa Bay to Klerksdorp ... ... ... ... ... 374

Bates, railway, on rough goods across the Vaal Biver, request to the Government to reduce ... 374

Bates, railway, mileage on rough and third-class goods to stations nearest to Klerksdorp 374

Bates, railway, English, German, and American ... ... ... ... 155

Bates, railway, and the price of Dynamite ... ... ... 51,407,412

Bates, railway, Transvaal and Bechuanaland extension ... ... ... 434

Bates, railway, on foodstu£b ... ... ... ... ... ...31, 33, 437

Bates, railway, house values, and ... ... , ... .„ ... ... 131

Bates of Cape Bailways, for rough goods ... ... ... ... 54

Bates, Netherlands Bailway, for rough goods from Natal and Delagoa Bay ... ... ... 64

Bates, railway, comparative, from ports to Johannesburg, and to other South African places 311

Bates, railway, comparative table of, per ton per mile, on Cape and Natal Bailways, and from ports

to Johannesburg ... ... ... ... ... ... ... 311

Bates, railway, comparative, in England, Holland, and South Africa ... ... ... 323

Bates, railway comparative mileage, on rough and third class goods on the Natal, Cape, and Delagoa

Jsay routes... ... ... ... ... ... ... ... oTo

Bates, Cape and Netherlands Bailways, comparison of, for the transport of an air compressor ... 99
Bates (Netherlands), railway, comparison of, and of white wages ... ... ... 23

Bates (Netherlands), railway, reduction of, and increase of traffic ... ... 147, 326

Bates, railway, on coal, basis of compilation of ... ... ... 313

Bates (Netherlands), railway, average, per ton of coal ... ... ... ... .., 317

Bates (Netherlands), railway, on coal, suggested 30 percent, reduction of ... ... 317

Bates (Netherlands), railway, 30 per cent, reduction of, on entire goods traffic ... 318

Bates, railway, reduced, on coal, on foreign railways ^.. ... ... ... 16, 20

Bates, railway, reduction of, prevented by the Netherlands Bailway ... 57, 123, 321, 381, 482

Bates, railway, lower than actual cost ... ... ... ... ... ... $14

788 INDEX.

Rates (NetherUnds), railway, possible reduction of, in oonjonotion with the Government and other

South African railways ... ... ••• ... ... ... 31$

Rates, railway, excess (constmotion) costs of mines of the Witwatersrand through high ... IffS

Rates, railway, reduction of , on all South African lines ... ... ... ... 320,465

Rates (Cape), railway, from ports to the Orange Free State ... ... ... ... 827

Rates (Cape), railway, Kimberley •.« ^ ... ... ... ... 827f 341

Rates (Netherlands), railway, estimated dividend on reduction of ... ... ... 323

Rates, railway, on coal in Qermany ... ... ... ... ... ... 329

Rates, railway, Dutch special ... ... ... ... 329

Rates, railway, English ... ... ... ... ... ... .. 320

Rates, railway, low and high ... ... ... ... ... ... ... 330

Rates, railway, effects of war of ... ... ... ... ... 330

Rates, railway, differential, on goods ... ... ... ... ... 331,332,433

Rates, railway, English, for coal ... ... ... ... ... 54,312

Rates (Netherlands), railway, Mr. Middelberg agreeable to a general reduction of ... 335

Rates (Netherlands), railway, for rough goods from Vereeniging to Johannesburg ... 54

Rates (Netherlands), railway, for stock ... ... ... ... ... ... 374

Rates, railway, from Port Elizabeth to Klerksdorp, via Vereeniging ... ... ... 374

Rates, railway, from Port Elizabeth to Klerksdorp, via Johannesburg ... ... ... 374

Rates (Netherlands), railway on coal, loss of Netherlands Railway only temporary through reduction of 52

Rates, railway, from Vereeniging to Johannesburg ... ... ... ... 19,249

Rates, railway, from Vereeniging to East London ... ... ... ... ... 19

Rates, railway, on coal, in America, and on the Rand, comparison of ... ... ... 143

Rates (Netherlands), railway, on coal transport to Qeldenhuis Deep, per ton {ler mile, comparison

of , and of English coal freight ... . ... ... ... ... ... 54

Rates, railway, on coal carried for departmental purposes in Orange Free State and Ca|ie Colony 54

Rates, railway. Orange Free State, Natal, and Portuguese, for rough goods ... ... 54

Rates, railway, cement ... ... ... ... ... ... 87, 123, 331, 432

Rates (Netherlands), railway, comparison of, and of prime costs on Australian goods 55

Rates, Sanitary Board... ... ... ... ... ... ... 131,293

Rate of speed in shaft sinking of Simmer and Jack East Shafts ... ... ... ^5

Rebates, Elandsfontein and Boksburg, on Johannesburg port rates ... ... ... 93

Receipts for consignments (on Netherlands Railway) ... ... ... ... 340

Reconstructions, reasons for ... ... ... ... ... ... ... 17

AiOOis, payaDxe ... .*• ••• •** ••* ••• ••• i^kx

Reefs, Witwatersrand, value of ... ... ... ... ... 194,415

Reefo on Rand, extent and nature ... ... ... ... ... ... 194

Reefs of the Robinson G. M. Co. ... ... ... ... ... ... 202

Reform, sanitary, necessary ... ... ... ... ... ... 429

Reforms, immediate necessity of, for mining industry ... ... ... 98, 323, 373

Refund of railage on lost goods by Netherlands Railway ... ... ... ... 339

Relief, economic, effects of ... ... ... ... ... ... ... 1

Xieud, tdunlie ... ... ... ••. •> ... ••• ... ' o9

Relief, radical, required ... ... ... ... ... ... ... 224

Relief, increased revenue result of ... ... ... ... ... ... 84

Relief asked for ... ... ... ... ... ... 106,121,235,373

Remedy, radical, for uitlander grievances required ... ... ... ... 237

Remuneration demanded by Native Commissioners ... ... ... 14, 23» 65, 85, 261, 202

R^x>rt, recommendation for publication of ... ... ... ... ... 453

INDEX. 739

' ■

Paob.

Report* unaniiPOUB* desirftblo ••• ••• ..• -.. ... ... ... 444

Report of Industrial Commission of Enquiry ... ... ... ... 443,444,445

Report of Volkraad Commission on dynamite ... ... ... ... 50,384,451

Report, results of adoption of ... ... ... ... ... 458

Representation of mining industry ... ... ... ... ... 25,31,224

Representation of commeroe... ... ... ... ... ... ... 25

Representation of mining industry at meetings of commissioners of railway systems demanded of

Government •,. ••■ •«. ... ... ... ... ... 57

AiOBQE've Boares ••• «•• .*• ... ... ... ... civ

Reserve fund of Netherlands Railway ... ... ... ... ... 70,337

Returns, desertion ... ... ... ... ... ... ' ... 257

Returns, analytical, of 29 gold companies ... ... ... ... ... 105,196

Returns of the South African Explosives Company for 1896 ... ... ... ... 406

Returns, approximate, of Netherlands Railway, for 1896 ... ... ... 185,186

Returns, estimated, of Netherlands Railway for 1896, effect of 15 per cent, reduction on passenger

and 30 per cent, on goods rates of ... ... ... ... 185,186,187

Returns, estimated, of Orange Free State Railways for 1897, with an estimated reduction of 10 per

cent, on passenger and 20 per cent, on goods rates ... ... ... 185, 189

Returns of the three Cape Railways for 1896 on an estimated reduction of 10 per cent, for the

passenger and 20 per cent, for the goods traffic ... ... ... 185, 1K7, 188

Revenue, State, and expenditure... ... ... ... ... ... 61

Revenue, State, from Pass Fees ... ... ... ... ... ... 133

jnevenue, raiiivay ... ... ... ... ... ... ... ... Ji4t/

Revenue, railway, per mile in Natal, the Cape, India, and the United Kingdom ... ... 324

Revenue, estimated, under Pass Law, balance sheet of . . . ... ... ... 107

Revenue, State, and the working costs of mines ... ... ... ... ... 415

Revenue, estimated, of Pass Office .. ... ... ... ... ... 295

Revenue, State, and Liquor Law No. 17 of 1896 ... ... ... ... ... 352

Revenue, State, contribution of liquor trade to ... ... ... ... ... 352

Revenue, the State, and reduction of railway rates ... ... 121, 129, 143, 146, 274, 414

Revenue, State, from dynamite monopoly ... ... ... ... ... ... 287

Revenue accruing to Government through duty on explosives formerly agreed to, and through

actual duty, comparison of ... ... ... ... ... 51

Revenue, State, comparative growth of, and of population in 1885-1897 ... 58

Revenue, increase of, through industrial relief ... ... ... ... ... 84

Revenue per mile of Netherlands Railway ... ... ... ... 328

Revenue of Netherlands Railway from collection of Customs ... ... ... ... 324

Revenue, State, sources of •.. ... ... ... ... ... 61

Rhodesia, price of No. 1 dynamite in «.. ... ... ... ... ... -381

Rhodesian mines, through railway rates to ... ... ... ... ... 312

Roads, Barberton ... ... ... ... ... ... ... ... 363

Robinson, Mr. J. B., evidence of ... ... ... ... ... ... 263

Robinson, Mr., flotations of ... ... ... ... ... ... ... 271

Robinson Mine ... ... ... ... ... ... ... ... ■ 271

Robinson G. M« Ca capital ... ... ... ... ... ... ... 6

Robinson G. M. Co., outlay ... ... ... ... ... ... 208

Robinson G. M« Ca, reserve ore ... ... ... ... ... ... 208

- Robinson G. M. Co., illicit sale of liquor at ... ... ... ... ... 48

Robinson G. M. Ca, stamps ... ... •« ••

»•

740

INDEX.

Robinson G. M. Co., profit of, in 18d6

Robinson G. M. Co., yield

Robinson G. M. Co., working costs

Robinson G, M. Co., reefs

Robinson G. M. Co., nature of ore

Robinson G. M. Co., chloiination plant

Robinson G. M. Co., cyanide works

Robinson G. M. Co., slimes treatment

Roburite

Roburite, safety of

Roburite, manufacture and transport of

Roburite, patent

Roburite, price of

Roburite, advantages of employment of

Roburite, invention of

Roburite, why not more used

Roburite, Government trials of, suggested

Roburite, use of, in Europe

Roburite, the dynamite monopoly and ...

Roburite and Nobel

Roburite, experimentalists in

Roburite, power of

Roburite fumes ...

Roburite manner of exploding

Roburite, composition of

Roburite, comparative safety of, and of dynamite

Roburite, proportionate power of, and of dynamite

Roburite and gelatine ...

Roburite, unsatisfactory experiments in

Rood, Mr. Kare, evidence of

Roodepoort United Main Reef, dividends of

Rose Deep, capital of ...

Paob.
202

... 202

190, 202, 20a

... 202

203

... 2oa

2oa

... 203

... «Mt>

343, 345, 346, 347

... v4«l

... v4t>

... v'sO, vMi

... aHlv

• • • 4^^^B

OAA

345
346,347

• . . v40

... w40

. . . o4/

... 04/

347

... «Ht/

. • . v^/

OJfi

• • • %F1^D

382

Salaries and wages, comparative, on Rand and in Western America of higher and lower grade

mine emjjloyees ... ... ... ... ... ... ... 421

15, 41, 45, 83, 87, 300, 302, 306, 448

24 45
40

• •• ••• •• JL%^ §

41
M

• •• ••• ••• ^7 &

• •• ■•• ••• Ov

Salaries of mine officials

Salaries of mine engineers ...

Salaries, average of, of white employees of mines

Salaries (Mine), lowness of, on the Rand

Salaries of mine managers

Salaries, reduction of (Langlaagte Royal)

Salaries of directors and mine officials of the Geldenhuis Deep

Salaries of mine officials in Johannesburg, in Australia, and in the Western States of the United

O vWvvvO ••• ••• ••• ••• •*• ••• ••• •■• X€Mr

Salaries of (mine) directors ... .» ... ... ... 300,448

Salaries of (mine) officials, comparative amounts of, and of white wages ... ... 307

Sanitary Board ... ... ... ... ... ... ... 235

Sanitary Board rates ... ... ... ... ... ... ... 131,293

Sanitary reform necessary ... ... ,.. ... ... ... ... ... 429

INDEX. 741

Paoi.
SaDitary condition of Rand ... ... ... ... ... ••• ••• 4^^

Scotland, comparative wages and cost of living on Rand and in ... ... ... ... ?06

Scran ton, North America, comparative cost of living at, and at Erith, England, and at Johannes-

Durg ... ... ... ... ... ... ... .-. koo

Secondary treatment of ore ... ... ... ... ••• ••• ^^

Seymour, Mr., evidence of ... ... ... ... ... ... ••• 1*^

Shaft sinking, rapid, cost of ... ... ... ... ... ... ••• ^^

92,424,425

365

. • • ... %yxk,

22, 301, 304

56, 317, 335, 337

... ... oil

Shaft sinking, speed of

Shanks, Mr. W., evidence of

Sheba mine boarding houses

Shortage of goods on the Netherlands Railway

Shutting down of mines

Siding of the Violet Consolidated Company ... ....

'Oiuiugs ... ... ... ... ... ...

Sidings, construction of

Sidings, fine for delay in off-loading at ... ... ... ... ••• 55

Sierra Buttes Mine, U.S.A., working costs of ... ... ... ... ••• ^7

Simmer and Jack, tonnage crushed at, and at Tamarack mine ... ... ••. 245

Simmer and Jack, economy of rapid shaft sinking in three deep level shafts of ... ... 425

Simmer and Jack East, statement of average wages of men working on the shaft of, including the

bonus paid, for 12 months ending 31st May, 1897 ... ... .-. ••• 94

Simmer and Jack East, hypothetical comparative cost of three deep level shafts of, on the time

wage and the bonus systems respectively ... ... ... ... 424

Simmer and Jack East, cost and rates of speed in sinking of shafts of ... ... ... 425

Slimes treatment (of Robinson mine) ... ... ... ... ... ... 203

Slimes plant, expense of ... ... ... ... ... ... ... 149

Social politics, a problem of : its solution ... ... ... ... ... ... 414

Societies, English aid ... ... ... ... ... ... ... 175

Societies, English benefit ... ... ... ... ... ... ... 173

Sorting ... ... ... ... ... ... .. 133,217,262

Sorting on the Henry Nourse ... ... ... ... ... ... ... 135

Sorting on the Crown Reef ... ... ... ... ... ... ... 140

Sorting at the Geldenhuis Deep and Crown Reef ... ... ... ... ... 150

Sorting, saving on the Ferreira mine through ... ... ... ... ... 150

Sorting, introduction of ... ... ... ... ... ... ... 150

Sorting, economy of ... ... ... ... ... ... ... 150

South African Explosives Company ... ... ... ... ... ... 451

South African Explosives Company, the Government and ... ... ... ... 400,402

South African Explosives Company, profits of, for 1896 ... ... ... ... 401

South African Explosives Company, respectiye positions of, and of Mr. Vorstman ... 398

South African Explosives Company, manufacture of cartridges by ... ... ... 397

South African Explosives Company, manufacture of powder by ... ... ... 396

South African Explosives Company and the cost of dynamite materials ... ... ... 394

South African Explosives Company and the mining industry ... ... * ... 393

South African Explosives Company, capital and formation of ... ... ... 381,390

South African Explosives Company, dividend for 1895 ... ... ... ... 382,390

South African Explosives Company, State's share of profits of ... ... ... 382, 454

South African Explosives Company, industrial advantages derived by the Transvaal from the 382
South African Explosives Company, profits of, on imported gelatine and giihr impr^gn^ 384, 410, 452

742

INDEX.

South African Explosives Company, profits for 1805 of

South African Explosives Company, partition of shares of

South African Explosives Company, Nohel and the subscribed capital of

South African Explosives Company, the non-paid up shares of

South African Explosives Company, importation of explosives by

South African Explosives Company, expenses of amortisation of capital outlay of

South African Explosives Company, Nobel and the

South African Explosives Company, profits of the, on dynamite ••• 143, 384, 385, 410

South African Explosives Company, Mr. Lippert's share in ...

South African Explosives Company, share capital of ...

South African Explosives Company, chairman of ...

South African Explosives Company, Pretoria directors of

South African Explosives Company, managing director of ...

South African Explosives Company and the Government agency

South African Explosives Company, returns of, for 1896

South African Explosives Company, the directorate (European) of the

South African Explosives Company, profits of, on imported dynamite ...

South African Explosives Company, profits of, on imported gelatine

South African Railways, co-operative action of, desirable ...

South African Railways, Colonial, Government control of

South African Railways, situation of . . .

South African Railway rates — see Rates.

South African Railways, profits of

Squatter's Law, the

Stamps erected and running on the Witwatersrand goldfields in 1896, total number of ...

Stamps running on mines of the Bamato group ...

Stamps hung up on mines of the Barnato group

Stamps, possible number of, of Barnato group under improved conditions

Stamps, total estimated number of, in 1900...

Stamps, working number of

Stamps, estimated number of, in 1900, on mines of the Bamato group

Stamps of the Robinson G. M. Company

Stamps, actual number of, on Central Rand

Stamps, possible number of, on Central Rand

State, share of, in Netherlands Railway, share of through rates ...

State Mining Engineer and Mr. Vorstman, Government agents ...

State Mining Engineer, statistics of

State budget and the surplus

State's share of profits of South African Explosives Company

Dtaue reuez ..• ... ... ... .. ... ...

Statistics, the State Mining Engineer's

Statistics of European labour of 53 companies

Statistics as to mining industry required ...

Steyn Estate, dividends of ...

Ste3m, President, dictum of

Stores, New Primrose Mine, reduction in costs of, 1890 to 1893

Stores, New Primrose Mine, reduction in costs of, 1893 to 1896 ...

Stores, costs of Langlaagte Royal

890,406

391,406

442

... 441

441

... 411

391,402

441, 451, 452

409

... 409

406

... 4\Rf

406
... 409

406
409

143, 384, 385, 410, 452

384, 410, 4fiS

325

328

4, 36, 57, 68, 316, 335, 434

230,281

158, 196

... 75, 81

202

... 428

428

... 311

399

... 195

142

382,454

... 195

119, 120

... 7,130

... 246

INDBX. 743

PA«k

StoreB, comparative table of prices for, at the Grown Reef and at the Alaska Treadwell Gold

Mining; Company ... ... ... ... ... ... ... 211

Stores, total cost of, per ton milled at the Crown Reef Gold Mining Company ... 211

Stores, total cost of, per ton milled at the Alaska Treadwell Gold Mining Company ... 211

Stores oonsomed at the Buffelsdoom Estate and Gold Mining Company, March and April, 1897 878
Stores, comparative prices of, at Butte Montana, U.S. A., and at Johannesburg ... ... 247

Sulphur, Transvaal ... ... ... ... ... ... 401, 402

Sunday work on mines ... ... ... ... ... ... ... 908

Supply of native labour ... ... ... 14, 28, 43, 45, 48, 8o, 116, 250, 261, 365, 418

Supplies — see Stores.

Surplus, Netherlands Railway, table of, for 1895 and 1896 ... ... ... ... 315

.Surplus, Netherlands railway, of 1896, division of ... ... ... ... ... 316

Surplus, Netherlands railway, for 1896... ... ... ... ... ... 315,327

.Surplus, the, and the State budget ... ... ... ... ... ... 142

.Surveys, Government ... ... ... r.. ... ... 363, 364

Sweepstakes ... ... ... . ... ... ... ... 292, 303, 457

Tamaback mine, U.S.A. ... ... ... ... ... ... ...244,248

Tamarack mine, working costs of ... ... ... ... ... 244,249

'Tamarack mine. History of ... ... ... ... ... 244

Tamarack Mine, dividends ... ... ... ... ... ... 244

Tamarack Mine, comparative working costs of, and of the Atlantic, Allouez, and Osceola outcrop

mines ... ... ... ... ... ... ... .. £vo

Tamarack Mine, working costs of from 1888 to 1894 ... ... ... ... 248

Tamarack Mine, tonnage crushed at, and at the Simmer and Jack Mine ... ... ... 245

Tariff— Me Rates (railway)

Tax, income, undesirable in the Transvaal ... ... ... ... ... ... 281

Taxation ... ... ... ... ... ... 19, 58, 60, 70, 126, 223, 274, 284

Taxation, differential, of mines ... ... ... ... ... ... ... 274

'Taxation of fixed property in Johannesburg ... ... ... 293

Taxation, incidence of... ... ... ... ... ... ... 58,126,284

Taxation of natives ... ... ... ... ... 29, 117, 129, 230, 231, 375

Taxation of mynpachts ... ... ... ... ... ... 24, .37,281

Taxation of imports, comparison of, in Central American Republics, and in the Transvaal {net

a^ Import duties)... ... ... ... ... ... 371

Taxation of mining community exceeds margin of profits ... ... ... ... 58

Taxation of gold ... ... ... ... ... ... ... 274,280,281

'Taxation, absorption of European money by ... ... ... ... ... 59

Taxation and railway charges, the chief grievances of the mining industry ... ... 59

Taxation, remission of... ... ... ... ., ... ... ... 70

'Taxation of dividends ... ... ... ... ... ... ... 280

Taxation, increased native ... ... ... ... ... ... 231

Taxation of whites, indirect ... ... ... ... ... ... 231

Taxation, reduction of ... ... .. ... ... ... ... 266

Aaxes, personal ... ... ... ... ... ... ... ... iv

Thomson, Mr. W. C, evidence of ... ... ... ... ... 842

Timber, railway rates on, from Delagoa Bay ... ... ... ... 54

Timber, cost, free on board, of , and Netherlands Railway eharges on ... ... ... 56

Timber sets, American railway rates on •.. ... ••. •• 56

744 INDEX.

PAiSI.

Timber, dotailfl of importing cost of, via Delagoa Bay ... ... ... ... ... 8(^

Timberin(^, comparative, in Rand and American mines ... ... ... ... 416

Time wage system, bonus system cheaper than ... ... ... ... ... 426-

Time wage, hy{X)thetical comparative cost of three deep level shafts of Simmer and Jack East on

l)onus system respectively, and ... ... ... ... ... ... 424

Time wage und contract work ... ... ... ... ... ... 307

Time work ... ... ... .. .. ... ... ... 251

Tonnage crushed at Tamarack and Simmor and Jack Mines .. ... ... 245

Tonnage crushed monthly ... ... ... ... ... ... ... 141

Touts, liund labour, in England ... ... ... ... ... ... 309

ThmIo profits, merchants* ... ... ... .. ... ... ... 146

Trade, comfiotition in ... ... ... ... ... ... ... 21,443

Trivdo combination of merchants ... ... ... ... ... ... ... 443

Trade, Transvaal, excessive contribution of, to railway profits ... ... ... 57

Traific, increase of, and reduction of railway rates ... ... ... 147,326

Transfer duty on landed property ... ... ... ... ... ... 292

Transit duos ... ... ... ... ... ... ... 123,4.50

Transit dues on machinery ... ... ... ... ... ... ... 102

Transit duos of Transvaal ... ... ... ... ... ... ... 130

Transit dues. Colonial ... ... ... ... ... ... ... 68

Transit dues in Cape CJolony ... ... ... ... ... ... 57,130,325

Transit duos. Natal ... ... ... ... ... ... 130

Tran.Hit of live stock, delay in ... ... ... ... ... ... ... 341

Tran.«*iK)rt, actual cost of, per ton per mile on American railways, 1887-1890 ... ... 1»4

Trans|K>rt of goods, cost of, per ton per mile on Cape Railways ... ... ... ... 325

Transiwrt of coal... ... ... ... ... ... ... 144,155,317,337

TransiK)rt of coal, possible total reduction in cost of ... ... ... ... ... 14JJ

Trans))ort of coal on American railways in 1892 ... ... ... ... I5i

Trans|)ort of mealies, cost of, from Durban to the New Comet Company ... ... ... 98

Transjwrt of natives, railway (Netherlands) rates for ... 14, 96, 110, 117, 129, 228, 375, 448, 455

Trans))ort of natives, cost of to the East Rand Proprietary Mines daring 1896, and to March, 1897 96
Trans|K)rt of native labour, cost of — Me Railway rates for transport of natives.

Trans)K)rt charge (of dynamite) at Klerksdorp ... ... ... ... 372,373

Trans)K)rt charge (of gelatine) at Klerksdorp ... ... ... ... ... 373

Trans|K)rt charges on dynamite from factory ... ... ... ... ... 403

Trapping system, the ... ... ... ... ... ... ... 358

Treasury Gold Mines, losses of, through desertion in 1896 ... .^ ... ... 110

Treasury Gold Mines, amount and {lescentages of working costs of, for the year ending 31st March,

Xv*%F $ • • • ••• ••• ••• •• m^ ••• ••• •«• A^K7

Trucks, refusal of, at Delagoa Bay ... ... ... ... ... ... 340

Uftlan i>KR grievances, radical remedy required for ... ... ... 237

Uit lander {X)pulation, incorporation of ... ... ... ... iST* 246, 250, 49

235
2SI
2SI
... 1»
211

of ... 151
155

Uit landers, |X>litical status of

Uitlander^, control of the personnel of administration by

Uitlanders, relations of, and of the Government ...

Uniteil Statets cost of living for a draughtsman in, and at Johannesbnig

United States, comparative cost of living in, and on Rand ... ... ...

United States, salaries of mine officials in JohanneBborg, Anstrmlia, and in thm wesUtm Statos
United States, standard railwav rates for coal in eastern States of .^

INDEX.

745.

Value of deep levels ... ... ....

Value of Atlantic mine

Value, average monthly, of coal delivered at mines

Value of Witwatersrand goldfields

Value, market, of companies

Paqm,

... 279

24&

... lfi&

127, IW, 415^

197, 199*

Value of reductions of coal and dynamite in percentages to certain paying and non-paying com{)ani6B 52

Value, relative, of Califomian products ... ... ... ... ... ... 222

Value of imports and exports through Cape Colony and Natal in 1896 ... ... ... 431

V enciorH snares ... ... ... ... ... .*• ... ... wO*

Victoria, the Colony of, and its mining industry ... ... ... ... ... 371

"Vienna Smash," the ... ... ... ... ... ... ... ... 145-

Violet Consolidated Company, siding of ... ... ... ... ... 5^

Vogelstniis Consolidated Deep, losses of, through desertion ... ... ... ... IIO*

Vorstman, Mr., Government agent ... ... ... ... 385,395,398,399

Vorstman, Mr., respective positions of, and of the South African Explosives Company ... 398-

Wage, Average developing per shift of white miner on the Crown Reef and the *7um)>ers' Deep

mines, and in Montana, Nevada, and British Columbia ... ... ... 149

Wage, average daily, of white miner on Rand ... ... ... ... ... 174

Wage, average daily, of white miner on developing deep level mines on Rand ... ... 174

Wage, average monthly, of four principal draughtsmen on the Rand and in England ... 149, 157

Wage, a living ... ... ... . ... ... ... ... 302

Wage, time ... ... ... ... ... ... ... 307, 424, 426

Wages, white, in 1895 ... ... ... ... ... ... ... 201

Wages, white and black. El Callao mine ... ... ... ... ... 215-

Wages, white, reduction of ... ... ... 15, 40, 41, 60, 144, 218, 258, 259, 307

Wages, white, in contract work in 1890 and in 1897 ... ... ... .. ... 259-

Wages, white, average ... ... ... ... ... ... 40, 47, 77, 201

Wages, white and native, percentage of, on working costs of nine shafts ... ... ... 92:

Wages, white 4, 39, 45, 92, 95, 104, 118, 119, 176, 183, 250, 275, 284, 299, 300, 304, 308, 364, 375, 447, 448

Wages, white, co-operation of €k)vemment necessary to lower ... ... 220,366'

Wages, white, percentage of, on working costs ... ... ... ... ...' 60'

Wages, white, and railway rates, comparison of ... ...• ... ... ... 23

Wages, white, reduction of, not now feasable owing to cost of living ... ... ... 47

Wages, white, uniform rate of ... ... ..< ... ... ... 304

Wages, white and native, on the Crown Reef in 1892 and in 1897 ... ... ... 140

Wages, white and native, on the Henry Nourse in 1892 and in 1897 ... ... ... 135

Wages, kaffir — see Native Wages

Wages, native ... ... ... ... ... ... ... 4, 6, 40, 44, 95

Wages, native, reduction of ... 9, 38, 41, 42, 48, 95, 141, 142, 144, 183, 220, 256, 366, 375, 449

Wages, at Pilgrim's Rest ... ... ... ,., ... ... ... 4A

Wages in 1891 and in 1897 ... ... ... ... ... ... ... 102

Wages in 1895 and in 1897 ... ... ... ... ... ... .. 102

Wages, clerks', reduction of, not advisable ... ... ... ... ... 158

Wages of single n^ners ... ... ... ... ... ... 46^176

Wages of married miners ... ... ... ... .., ,,, ... 41,4

Wages, miners' — see White wages.

Wages of miners in England ••• ... ... ... ... ... 172,176

Wages of miners in Australia, America, and on the Rand ... ... ... I&l

746 INDEX.

^^SP^$ miners', diffarenoe in, on the Band and in parte of America ... ... Iffl

Wages on the mines of Montana, n.S.A« ^ ... ... ... ... 1S7

Wages on the Comstock mines, Nevada ... ... ... ... 157

Wages in the mines of British Colombia ... ... ... ... ... ... Iff7

Wages, miners', in various countries ... ... ... . ••. .. ... 218

Wages of Hungarian miners ... ... ... ... ... ... ... 371

Wages, average, of men working on t#he shaft of the Knight's Deep for twelve montJis to 3l8t May,

AOV/ ... ... ••* ... ... ... ... ... VS

Wages, European, of the BuflEelsdoom Estate and Qold Mining Company, March and April, 1897 877
Wages, average, of men working on the shaft of the SinOner and Jack East, including the bonus

paid, for twelve months to the 31st May, 1897 ... ... ... *-. M

Wages, comparative, in Scotland and on the Rand ... .. ... ... ... 306

Wages, comparative rate of, in United States and on Rand ... ... ... ... 251

Wages, white, comparative amounts of, and of mine officials' salaries ... ... ... 307

Wages of European (Netherlands) railway employees ... ... ... ... 36

Wages, white miners', failure of reduction of, in India... ... ... ... ... 290

Wages, comparative, on Rand and in Western America of higher and lower grade mine employees 4Sl
Wages, table of, in Montana, Nevada, and British Columbia, and on the Crown Reef and Jumpers

JLtJOp ... ... .•• ... .^. ... •*. *** Av|

Wages at the Deadwood Terra €k>ld Mining Company ... ... ... ... ... 218

Wages at the Homestake and Highland mines and mills ... ... ... ... 213

Wages, cost of living an index to ... ... ... ... ... 420

Wages, white, reduction of, on Randfontein mines ... ... ... ... 275, 303

Warders, a staff of , required ... ... ... ... ... ... ... 295

Warders for Pass Law, a staff of , required ... ... ... ... ... 294,295

Water in American lode mines ... ... ... ... ... 416

Water supply, Johannesburg ... ... ... ... ... ... 430

Way, Mr. E. J., evidence of ... ... ... ... ... ... ... 38

Wemmer deep level ... ... ... ... ... ... ... 88

Witwatersrand mines, comparison of, and others ... ... ... ... ... 178

Witwatersrand, cost of living for miners in America, and on ... ... ... 151, 419

Witwatersrand mines, comparative working conditions of, and of American mines in the Rocky

Mountains and in the Pacific Slope States ... ... ... ... ... 415

Witwatersrand mines, comparative working costs of, and of quartz lodes in American fields ... 416

Witwatersrand mines, regularity of yield of ... ... ... ... 178

Witwatersrand goldfields, estimated cost of the equipment and development of ... ... 158

Witwatersrand, reasons for the inflow of capital into ... ... ... ... 105

Witwatersrand, discontent of ... ... ... ... ... ... ... 269

Witwatersrand goldfields, value of ... ... ... ... ... 127,194,415

Witwatersrand fields, number of stamps on ... ... ... ... ... 158,196

Wolhuter claim licenses ... ... ... ... ... ... ... 241

Wolhuter Gold Mines, losses of, through desertions in 1895 and 1896 ... ... ... 110

Wolhuter Gold Mines, illicit sale of liquor at ... ... ... ... ... 49

Wolhuter Qold Mines, amount and percentages of working costs of, for 1896 ... ... 139

Worcester Mine, illicit sale of liquor at... ... ... ... ... 48

Worcester deep level ... ... ... ... ... ... ... ... 88

Worcester mine coal expenses ... ... ... ... ... ^256

Working hours, average number of , per day of white miner ... ... ... ... 47

Working conditions in California ... ... ... ... .. ... 248

INDEX.

747

Paoi.

Working conditions, comparative, of the Witwatersrand mines and of American mines in the

Rocky mountains and in the Fftdfio Slope States ... ... ... ... 415

Working conditions, improved ... ... ... ... ... ... 270

Working conditions, Klerksdorp ... ... ... ... ... ... ... 370

Working conditions of different mines ... ... ... ... ... ... 126,209

Working conditions of mines in 1805 and 1897 ... ... ... ... ... 102

Working condition of Rand and Michigan mines, comparison ... ... ... 245

Working conditions, of the Alaska Treadwell Gold Mining Company ... ... ... 210

ViSLD of Witwatersrand gold mines, regularity of

Vield of the Robinson Gold Mining Company

Yield, initial, of the New Heriot

Yield of the Crown Reef

Yield, initial, of the Geldenhuis Deep ...

Yield, increased, of the Geldenhuis Deep ...

Yield of the Deadwood Terra Gold Mining Company

Yield of the £1 Callao mine

Yield, annual, of the Geldenhuis Deep

••%

178
... 202

204
... 208

208
... 208

212

213, 215

Zeilb Mine, U.S.A., working costs of

247

11/93

42GHS
53-004-03

STAIiKt^sLIBBARIES

or before the date last stamped below

TN H9JBA37 1807 C.I

TIm inMnQ Indusliy. ANM0100

noow ramuDon

7 AJ /a

3 6105 082 694 600

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